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Hoka Revenues Rise 30 Percent in Q3; Ugg Continues to Diversify

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Parent Deckers Outdoor, which continues to navigate a difficult logistics environment that is forcing it to spend upwards of $100 million this fiscal year on air freight and carry more inventory than typical, realized topline growth from its two largest brands in the period ended Dec. 31. To help offset additional costs, DECK has implemented price adjustments on some Spring ’22 Hoka models and intends to do the same for Ugg in the fall.

Hoka One One sales rose 30 percent in Q3 to $185 million—nearly double the volume in the 2019 period—despite delivery delays that caused stockouts in certain markets. Global DTC sales increased 13 percent. The company is testing brick-and-mortar formats for the brand in the U.S. and China before a global rollout and remains focused on getting the brand’s annual topline to $1 billion.

At Ugg, Q3 revenues rose 7.9 percent year-over-year to $946 million as U.S. sales grew high single digits and international expanded by 20 percent. Ugg, which continues to make gains in men’s and kids’ footwear as well as accessories and apparel, had more full price sellthroughs in the period. Women’s core Classic products now account for less than 40 percent of Ugg’s sales volume. The Neumel was the brand’s largest volume style in Q3.