Earnings Wrap: Deckers Brands, VF Corp. Report Quarterly Results + More
FN keeps track of all of our earnings coverage for retailers and footwear companies here.
July, 28 2022: Deckers Brands (DECK) reported earnings for Q1 of fiscal year 2023.
Earnings: Diluted earnings per share was $1.66. Net income was $44.8 million.
Sales: Net sales increased 21.8% to $614.5 million.
CEO comments: “Fiscal year 2023 is off to a solid start, with HOKA driving strong growth, propelling the brand to eclipse the billion-dollar milestone over the trailing twelve-month period,” said CEO and president Dave Powers. “The HOKA brand’s speed to achieve this feat is exciting, especially as the brand’s increasing penetration to our portfolio benefits Deckers’ overall quarterly financial and operational performance. In addition, our Board’s recent approval of a significantly increased share repurchase authorization shows a great deal of confidence in our long-term strategic plan and the opportunities that lie ahead.”
Outlook: The company expects net sales between $3.45 billion and $3.50 billion in 2023.
July 28, 2022: VF Corporation (VFC)
Earnings: Net income was a loss of $55.960 million in the first quarter of 2023.
Sales: Net revenue increased 3% to $2.3 billion in Q1.
CEO Comments: “We delivered solid top-line results in Q1, ahead of our initial expectations, led by strong consumer engagement with our outdoor, streetwear and active brands amidst a softer consumer environment and inflationary pressures,” Steve Rendle, chairman, president and CEO of VF, said in a statement. “While uncertainty persists across geographies and marketplaces from ongoing macro-economic headwinds, we are focused on the things that we can control and will continue our strategic investments to ensure long-term, sustainable and profitable growth.”
Outlook: VF is maintaining its currency adjusted fiscal year 2023 outlook while revising its earnings outlook on a reported dollar basis to reflect ongoing negative impacts from foreign currency fluctuations. It now expects adjusted EPS of $3.05 to $3.15, implying 4% to 7% growth versus the prior year on a constant dollar basis.
July 27, 2022: Columbia Sportswear Company (COLM)
Earnings: Net income decreased 82% to $7.2 million, or $0.11 per diluted share.
Sales: Net sales increased 2% to $578.1 million, compared to Q2 of 2021.
CEO Comments: “During the second quarter, which is our lowest volume sales quarter, performance trends varied greatly by region. Many markets continued to experience meaningful sales growth, while others were impacted by external headwinds and shipment delays. As we head into the important Fall sales season, we are eager to get our innovative product into the marketplace,” said chairman, president and CEO Tim Boyle.
Outlook: The company downgraded its outlook and net sales to increase between 10 and 12%.
July 27, 2022: Boot Barn Holdings, Inc. (BOOT)
Earnings: Net income was $39.3 million, or $1.29 per diluted share, in the first quarter of 2023 compared to $40.6 million, or $1.35 per diluted share in the prior-year period.
Sales: Net sales increased 19.4% over the prior-year period to $365.9 million in the first quarter of 2023.
CEO Comments: “Following the tremendous growth and profitability we achieved in fiscal 2022, we are very pleased to report another quarter of double-digit same store sales growth and earnings per share that were ahead of our expectations,” Jim Conroy, president and CEO of Boot Barn, said in a statement. “Our merchandise and marketing strategies combined with our expanding omni-channel capabilities continue to fuel strong full-price selling in stores and online. Our new stores are proving to be highly productive and we feel great about our real estate pipeline. We believe the addition of these new stores will help us to further gain share in the combined $40 billion western, work and country lifestyle markets. Given the current tone of the business, we continue to expect total sales to grow double digits versus last year driven by new store openings with same store sales flat to growing low single digits.”
Outlook: In light of recent macroeconomic uncertainty, the company is providing updated guidance for the fiscal year ending April 1, 2023. The company now expects total sales of $1.68 billion to $1.70 billion, representing growth of 12.9% to 14.2% over the prior year.
July 27, 2022: Steve Madden (SHOO)
Earnings: Net income was $48.5 million, or $0.62 per diluted share.
Sales: Revenue increased 34.5% to $535 million compared to $397.9 million in 2021.
CEO Comments: “We delivered strong results in the second quarter, with revenue and earnings growing robustly compared to the prior year and exceeding our expectations,” said chairman and CEO Edward Rosenfeld. “While macro pressures have increased, making the near-term outlook more uncertain, we are confident that our core strengths – our people, brands and business model – leave us well-positioned to drive growth and create significant value for our stakeholders over the long term.”
Outlook: For fiscal year 2022, Steve Madden expects sales to grow between 13% and 16% over last year. The company expects diluted EPS in the range of $2.87 to $2.97.
July 26, 2022: Skechers U.S.A., Inc. (SKX)
Earnings: Net earnings for the second quarter of 2022 were $90.4 million and diluted earnings per share were $0.58, a decrease of 34.1% over the prior year.
Sales: Quarterly sales increased 12.4% year-over-year to a record $1.87 billion in the second quarter of 2022.
CEO Comments: “2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” Robert Greenberg, CEO of Skechers said in a statement.
Outlook: For the third quarter of 2022, the company believes it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.70 and $0.75.
June 27, 2022: Nike, Inc. (NKE)
Earnings: In the fourth quarter, Nike reported its net income was $1.4 billion, down 5%, and diluted earnings per share was $0.90, down 3% compared to prior year. But for the full fiscal year 2022, net income was $6.0 billion, up 6%, and diluted earnings per share was $3.75, up 5% compared to prior year.
Sales: Fourth quarter reported revenues were $12.2 billion, down 1% compared to prior year. For the full fiscal year, revenues increased 5% to $46.7 billion.
CEO Comments: “Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers,” John Donahoe, president and CEO of Nike, Inc., said in a statement. “Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.”
June 7, 2022: Academy Sports and Outdoors, Inc. (ASO)
Earnings: GAAP net income decreased 15.7% to $149.8 million. Diluted earnings per share were $1.69. Adjusted net income was $153.2 million. Adjusted diluted earnings per share were $1.73.
Sales: Net sales decreased 7.1% to $1.47 billion. Compared to Q1 of 2019, net sales increased 36.3%.
CEO Comments: “We are satisfied with our first quarter results as the Company continued to position itself for long-term growth and expansion as we executed effectively in a highly dynamic environment and against a very strong prior year quarter,” said CEO and chairman Ken Hicks. “In April, we opened our first new store in over two years and are excited and proud of its early performance. We expect to open at least eight new stores in 2022 as part of our plan to open 80 to 100 stores over the next five years. Looking ahead, the team is focused on executing our 2022 priorities which will help drive long-term growth and sustainable profitability.”
Outlook: The company updated its outlook and expects total net sales in fiscal 2022 to be between $6.43 and $6.63 billion.
June 2, 2022: Lululemon Athletica Inc. (LULU)
Earnings: Income from operations increased 34% to $260.3 million. Diluted earnings per share were $1.48. Adjusted diluted earnings per share were $1.16.
Sales: Net revenue increased 32% to $1.6 billion.
CEO Comments: “In the first quarter of 2022, continued momentum in the business enabled us to achieve a strong start to the year. These results provide a solid foundation as we begin our next five-year journey and deliver against our new Power of Three ×2 growth plan, said CEO Calvin McDonald. “I want to thank our teams around the world for remaining agile and continuing to execute at a high level to achieve our goals, while successfully navigating the challenges within the macro environment. We look forward to all that lies ahead for lululemon as we continue to grow the brand.”
Outlook: For 2022, the company expects net revenue to be in the range of $7.610 billion to $7.710 billion.
June 2: Designer Brands Inc. (DBI)
Earnings: Net income was $26.2 million. with diluted earnings per share of $0.34. Adjusted net income was $36.7 million with diluted EPS of $0.48.
Sales: Net sales increased 18.1% to $830.5 million.
CEO Comments: “We saw robust growth in our Owned Brands in the quarter, both through our direct-to-consumer and wholesale channels, and believe we are on a great trajectory to achieve our goal of doubling our Owned Brand sales by 2026,” said Designer Brands CEO Roger Rawlins in a statement.
Outlook: For 2022, the company expects diluted EPS between $1.90 and $2.00.
June 1, 2022: Capri Holdings (CPRI), parent company to the Michael Kors, Versace and Jimmy Choo brands, reported results for the fourth quarter.
Earnings: Net income was $81 million, or $0.54 per diluted share. Adjusted net income was $152 million, or $1.02 per diluted share.
Sales: Revenue increased 24.6% to $1.492 billion.
CEO Comments: “Our ability to deliver record results while navigating the challenges of an unprecedented global pandemic is a testament to the strength of our brands and the success of our strategic growth initiatives. Most importantly, we would not have been able to achieve these results if not for the hard work, dedication and resiliency of our teams across the globe,” said John D. Idol, chairman and CEO.
Outlook: For fiscal year 2023, the company expects total revenue of about $5.95 billion, up about 5% compared to the prior year on a reported basis.
June 1, 2022: Dr. Martens Plc (DOCS) reported preliminary results for fiscal year 2022
Sales: Revenue was up 11% to £908.3 million, or $1.14 billion at current exchange.
CEO Comments: “We have a unique, iconic brand and thousands of passionate people globally, who act as brand custodians every day. I would like to thank each and every one of them for their hard work — these results are a testament to them,” said CEO Kenny Wilson.
Outlook: The company expects high-teens revenue growth for fiscal year 2023.
March 4: Hibbett (HIBB)
Earnings: Net income was $39.3 million, or $2.89 per diluted share.
Sales: Net sales decreased 16.3% to $424.1 million.
CEO Comments: “During the first quarter, our team effectively executed our strategic plan and delivered comparable store sales and financial results in line with our expectations. As we’ve previously discussed, our customers spending habits were affected by lower discretionary income due to the absence of stimulus payments received in the first quarter of last year. We are pleased to report that the supply chain disruption we experienced at the end of last year has improved and our current inventory position is strong and consistent with our forecast,” said CEO and president Mike Longo.
Outlook: Hibbett expects supply chain challenges in the year ahead to impact results. The company expects total net sales to be relatively flat in dollars compared to fiscal 2022 results.
May 26: Macy’s (M)
Earnings: Net income was $286 million. Diluted EPS was $0.98 and adjusted diluted EPS was $1.08.
Sales: Revenue was $5.35 billion.
CEO Comments: “Our company delivered solid results in the first quarter despite a challenging operating environment. We delivered strong earnings, beating our estimates, and sales that were in line with our expectations. While macroeconomic pressures on consumer spending increased during the quarter, our customers continued to shop. We saw a notable shift back to occasion-based apparel and in-store shopping, as well as continued strength in sales of luxury goods,” said CEO and chairman Jeff Gennette.
Outlook: For fiscal year 2022, Macy’s expects sales between $24.46 billion to $24.7 billion.
May 26, 2022: Genesco (GCO), which owns Journeys, Johnston & Murphy, and Schuh.
Earnings: GAAP EPS from continuing operations were $0.37.
Sales: Net sales declined 3% to $521 million (up 5% from 2020).
CEO Comments: “We are very pleased with our start to fiscal 2023, particularly our ability to exceed profitability expectations. While the year ago period posed a difficult comparison due to government stimulus-fueled consumer spending, especially for our Journeys business, our top and bottom line performance on a multi-year basis underscores the success of our footwear focused strategy and our conviction that our company is fundamentally stronger than prior to the pandemic,” said CEO Mimi Vaughn