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Deckers Outdoor Corp. (NYSE:DECK)

This company has been moved to the archive! The financial data has not been updated since February 5, 2024.

Common-Size Income Statement

Deckers Outdoor Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -49.68 -48.97 -46.02 -48.25 -48.51 -51.05
Gross profit 50.32% 51.03% 53.98% 51.75% 51.49% 48.95%
Selling, general, and administrative expenses -32.33 -33.10 -34.17 -35.90 -35.29 -37.25
Income from operations 18.00% 17.93% 19.81% 15.85% 16.20% 11.69%
Interest income 0.43 0.06 0.10 0.34 0.30 0.16
Interest expense -0.09 -0.07 -0.24 -0.24 -0.23 -0.24
Other income (expense), net 0.03 0.00 0.03 0.02 0.01 -0.02
Other income (expense), net 0.37% 0.00% -0.11% 0.13% 0.08% -0.10%
Income before income taxes 18.36% 17.92% 19.70% 15.98% 16.28% 11.60%
Income tax expense -4.11 -3.58 -4.67 -3.03 -3.20 -5.59
Net income 14.25% 14.35% 15.03% 12.95% 13.08% 6.01%

Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).

A significant expansion in overall profitability is evident between 2018 and 2023, characterized by a marked increase in net income margins and improved operational efficiency. The transition from a net income margin of 6.01% in 2018 to 14.25% in 2023 indicates a substantial strengthening of the bottom line relative to net sales.

Gross Profitability Trends
Gross profit margins exhibited an upward trajectory from 48.95% in 2018, peaking at 53.98% in 2021, before stabilizing at 50.32% by 2023. This performance was driven by the management of the cost of sales, which reached its lowest point as a percentage of net sales in 2021 at 46.02%. Despite a slight increase in cost of sales in the final two years of the period, the gross margin remained consistently above the 2018 baseline.
Operational Efficiency and Leverage
A consistent downward trend in selling, general, and administrative (SG&A) expenses is observed, decreasing from 37.25% of net sales in 2018 to 32.33% in 2023. This steady reduction suggests the achievement of economies of scale, where operating expenses grew at a slower rate than revenue. Consequently, income from operations expanded from 11.69% to 18.00% over the six-year period, reflecting improved operational leverage.
Financial Costs and Tax Impact
Interest expenses as a percentage of net sales declined sharply from -0.24% in 2021 to -0.09% in 2023, contributing to higher pre-tax margins. Income tax expenses remained volatile, fluctuating between 3.03% and 5.59% of net sales, yet the overall impact of non-operating items remained minimal compared to the gains achieved at the gross and operating levels.
Net Income Performance
The net income margin experienced a sharp increase between 2018 and 2019, jumping from 6.01% to 13.08%. Following this surge, the margin remained resilient, peaking at 15.03% in 2021 and maintaining a level above 14% through 2023. This stability demonstrates a sustained ability to convert a larger portion of every dollar of sales into profit.

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