HOKA Eyes Younger Consumers, New Categories to Hit Lofty Revenue Goals
HOKA’s global revenues rose 62 percent to $571 million for the fiscal year ended March 31, and will more than likely top $800 million this FY on route to $1 billion in annual global revenues. Deckers’ senior management says the topline expansion will be achieved through bringing more, especially younger, consumers into the brand, focusing on repeat purchases and expanding into styles beyond core running. Those will include trail/hike and likely lifestyle offerings in what management refers to as “still performance product, but adapted for a lifestyle consumer.”
“…But generally speaking, wholesale door expansion is not a major strategy of our,” Dave Powers, President and CEO of Deckers Outdoor told analysts last week.
Elsewhere at Deckers in FY21:
- Global UGG sales rose 13 percent to $1.717 billion as the number of brand consumers purchasing two or more products during the year increases 85 percent. In the U.S., there was an 88 percent jump in DTC orders containing men’s and women’s styles. Planned investments in demand creation are expected to help drive topline growth in FY22.
- Teva’s global revenues were essentially flat at $139 million last year as DTC penetration grew; the brand strengthened partnership with strategic wholesale accounts; and made strides toward meeting its sustainability goals.
- Koolaburra global revenues increased 9 percent to $76 million in FY21 as the company chose to reduce inventory purchases in strategic areas of the brand portfolio as ordering as conservative at the pandemic’s onset.
- Sanuk sales fell to $42 million last year as its management team right-sized its distribution and focused on key wholesalers and owned DTC.