Deckers Plots Changes, Hoka, UGG Maintain Momentum
Deckers Plots Changes, Hoka, UGG Maintain Momentum
Deckers Brands is not standing pat. As its two top businesses, Hoka and UGG, continue to maintain their respective momentums, the company is preparing to divest its Sanuk business and launch a new label described as a “super sneaker brand” across various categories that will utilize learnings from both Hoka and UGG.
At Hoka, where Q2 revenues grew 27 percent to $424 million and included a 54 percent increase in direct-to-consumer sales, the brand has begun segmenting wholesale access to its broader line of categories and styles and has decided to push key H2 styles into Q4 to avoid the promotional marketplace this holiday season and be prepared for the launch of the outdoor running season again.
“We want to maintain scarcity in the marketplace, full price sellthroughs, and keep this brand moving at a healthy pace,” Dave Powers, president, and CEO told analysts last week.
At UGG, where the brand’s current momentum in Europe will be accelerated, Q2 sales increased by 28.0 percent to $610.5 million. H1 DTC revenues were up 26 percent and increased 48 percent outside the U.S.
With its strong Q2 results, which included a 76 percent increase in operating income to $224.6 million and nearly 25 percent overall sales growth to $1.09 billion, Decker Brands elevated its full-year guidance again to now expect $4.025 billion in sales, up from a prior forecast of $3.98 billion and 11 percent above last year’s $3.627 billion.
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