Deckers Brands posted a lower-than-expected net loss of $58.9 million in the seasonally weak first quarter of its financial year, ended June 30, although it remained higher than the $47.3 million loss recorded in the year-ago period.
The gross margin rose to 43.7 percent from 40.5 percent in the same period of 2014, thanks to lower closeout sales and improved margins abroad. Group revenues were off by 18.4 percent in dollars and by 18.8 percent in local currencies, down to $174.4 million, but analysts had expected them to end up lower.
After continued strong double-digit increases in recent quarters, Hoka One One went up by only 1.8 percent during the period. This was attributed to the launch of the third version of the Clifton, which happened in July instead of June. Another best-selling model of the brand, the Clayton, won Editor's Choice from Runner's World.
Double-digit declines were recorded for Ugg, Teva and Sanuk. Teva's sales fell by 17.3 percent, in spite of a gain in the sport sandal category. High inventories in the U.S. market also caused Sanuk to book a 20.2 percent decline. A shift in the timing of shipments contributed to a drop of 19.8 percent for Ugg.
By channel, the group recorded sales declines of 24.3 percent at wholesale and 3.6 percent for its direct-to-consumer business. Geographically, sales were off by 18.6 percent in the U.S. and by 18.2 percent in the rest of the world. The management confirmed its projections for the full year.