Updated: Hoka Drives Stellar Quarter for Deckers Brands
Deckers Brands posted a monster quarter with sales rising 14% in constant currency, driven by 83% growth in its running brand Hoka One One.
Nearly every brand in the company portfolio grew during the quarter, which ended Sept. 30.
Deckers’ bottom line grew as well, with net income rising 30% to $101 million.
The company managed to grow in both the wholesale and DTC channels. Wholesale sales increased 1.8% and DTC jumped 74.2%.
Revenue for the company’s largest brand Ugg, increased 2.5% to $415 million.
Hoka One One, which has been on a tear for quite some time, increased 83% to $143 million.
Teva also recorded a strong quarter, with revenue up 20.5% to $27.7 million.
Sanuk was the only brand that declined during the quarter, with sales dropping 11.4% to $9.5 million. However, that trend was an improvement from Q1, when Sanuk revenue fell 29.2%.
Deckers CEO David Powers commented on Sanuk’s performance during the company’s earnings conference call, including a few bright spots for the brand.
“For Sanuk, brand performance was hurt by a soft department store channel,” he said. “However, we were encouraged by the recovery within surf specialty as coastal towns saw an increased outdoor participation. Importantly, Sanuk posted a second consecutive quarter of robust direct to consumer growth, which was helped by a 40% increase in customer acquisition online. We are excited to receive feedback from the brand’s online audience as Sanuk will be introducing new product innovations in the coming months.”