Deckers Brands saw a 16% jump in its revenue to $1.560bn for Q3, which ended 31 December 2023 following a “record” rise in its second quarter FY2024 back in October.
Similar to its Q2 results, the company’s core brands were attributed to its sales with Ugg sales increasing 15.2% to $1.072bn and Hoka jumping 21.9% to $429.4m.
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Deckers Brands CEO Dave Powers referred to Hoka and Ugg as the company’s “healthiest brands” and explained its vision of executing strategic initiatives to achieve long-term success.
The footwear company’s other success story was Koolaburra, which saw its net sales increase by 10%, however its brands Teva and Sanuk saw net sales decrease by 16.2% and 28.9% respectively.
Deckers announced its intention to divest its Sanuk brand from its portfolio in October in an attempt to best allocate its resources to ensure alignment to its long-term objectives.
Powers maintained the “unparalleled demand” for the company’s brands in Q3 was fuelled by an increase in global awareness, enhanced consumer engagement and innovative product offerings.
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By GlobalDataHe said: “This, coupled with our disciplined operating approach, dedication focus on marketplace management and fortified balance sheet, puts Deckers in a position of strength as we enter our last fiscal quarter of 2024.”
Deckers Brands Q3 key results
- Net sales increased 16.0% to $1.560bn compared to $1.346bn the prior year
- Operating income was $487.9m compared to $362.7m the prior year
- Net income rose to $389.9m from $278.7m in 2022.
Deckers 2024 full fiscal year outlook expects sales to be $4.15bn and with gross margin anticipated to be 54.5%. The company’s operating margin is forecasted to be 20%, whilst diluted earnings per share are forecasted to be in the range of $26.25 to $26.50.
Deckers’ president, CEO to retire in 2024
Powers will step down from his position as CEO and president on 1 August 2024. Stefano Caroti who is currently chief commercial officer will assume the role of president and CEO upon Powers’ retirement.
Mike Devine, chairman of the board said: “Dave has fostered each of our brands so that they have become consumer favourites, capitalising on market trends and dramatically increasing shareholder value throughout his tenure.”
Caroti’s appointment follows a thorough succession planning process conducted by the board with help from an executive search company.
Caroti is described as a key member of the executive team with 32 years of industry experience and general management, sales, retail, product, marketing, business strategy and brand management.
He led Decker’s omnichannel, regional and Hoka brand operations during its “most pivotal years,” and helped craft and progress Decker’s “consumer-focused strategy and inclusive, engaged culture.”
Before joining Deckers, Caroti served as the chief commercial officer and managing director at Puma. He has also held various senior executive roles at NIKE, Inc., including vice president of EMEA commerce, vice president of EMEA footwear, and general manager for Germany and Italy.
Speaking on his departure Powers commented: “Since joining Deckers in 2012 we have experienced explosive growth driven by incredible – and still increasing – brand heat across Ugg and Hoka. I’m confident Deckers will continue to excel throughout this transition and into the future with Stefano at the helm.”
