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Deckers Brands reported growth across its footwear properties in its Q1 earnings. The corporate’s first fiscal quarter of 2025, which ended June 30, saw a 22% rise in net sales to $825 million, up from $676 million the previous 12 months. Direct-to-consumer (DTC) net sales, including digital sales, also saw a serious boost, climbing 24% to $311 million from $250 million a 12 months ago.
The corporate’s Hoka athletic footwear brand was the essential growth driver, making up two-thirds of its net sales for the quarter.
“The brand is on course to deliver one other 12 months of healthy growth with premium products and elevated experiences that enhance our consumer connections,” said Dave Powers, Deckers’ outgoing CEO, through the earnings call.
Deckers Brands web sales by 12 months
Deckers, which also owns Ugg, Teva, Sanuk and Koolaburra, holds the No. 51 spot on Digital Commerce 360’s Top 1000 rating of the most important online retailers in North America. The corporate falls under the Apparel & Accessories category. Digital Commerce 360 projects that web sales for Deckers Brands will reach $2.1 billion in 2024.
Deckers Brands Q1 earnings growth led by Hoka and Ugg sales
Hoka set a brand new record in the corporate’s first quarter, with revenue surging 30% year-over-year to $545 million. The brand’s DTC revenue, primarily sales from its ecommerce website, grew by 33%.
Powers attributed the surge to high demand for Hoka’s products, including latest launches, across the worldwide market.
“From a DTC perspective, Hoka continues to see global gains through consumer acquisition and retention, with particular strength amongst retained consumers,” he said.
Ugg also delivered strong leads to the quarter, with global revenue rising 14% year-over-year to $223 million, based on Powers. The expansion was driven by robust full-price sales of key franchises just like the Tasman and the Golden Collection, which significantly contributed to the boot brand’s DTC success in each the U.S. and international markets, he noted.
Future outlook and leadership changes at Deckers
Looking ahead, Deckers projects a ten% increase in overall revenue for the fiscal 12 months ending March 31, 2025, reaching $4.7 billion. Hoka is anticipated to grow around 20%, while Ugg is anticipated to see mid-single-digit growth.
Powers is retiring as president and CEO on Aug. 1, with Stefano Caroti, the present chief business officer, set to take over each positions. Deckers also plans to nominate Caroti to the board at its 2024 annual meeting of stockholders, while Powers will remain on the board through the 2025 meeting.
Shareholders can even vote on a proposed six-for-one forward stock split through the annual meeting on September 9.
As well as, Deckers has reached an agreement to sell its Sanuk brand, which it acquired for $120 million in 2011. Details concerning the deal, expected to shut in August, weren’t provided.
Through the company’s October earnings call, Powers noted Sanuk’s strong product performance but said scaling the brand meaningfully inside the Deckers’ portfolio would take too long.
“There’s other things that we predict we will spend money on, and we predict that it is a brand that customers love,” he said, adding that Sanuk “deserves a very good home” versus being the “fourth or fifth brand in our portfolio.”
More Q1 earnings highlights for Deckers
For the quarter ended June 30, 2024, Deckers reported:
- Sanuk’s net sales decreased by 28.4%, to $6.9 million from $9.6 million a 12 months ago.
- Teva’s net sales fell 4.3%, to $46.3 million from $48.4 million.
Other brands, primarily Koolaburra, saw net sales surge 123.5% to $4 million from $1.8 million.
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