Deckers Brands, the parent company of popular footwear brands Ugg, Hoka One One, and Teva, has announced impressive third-quarter revenue growth. The company’s strong performance can be attributed to the success of its Ugg brand and its strategic focus on e-commerce.

For the quarter ending on December 31, 2020, Deckers Brands achieved a net sales increase of 14.8%, reaching a record-breaking $1.078 billion compared to $938.7 million in the same period the previous year. On a constant currency basis, net sales increased by 13.8%. The company also saw a 26% growth in earnings per share, reaching $8.99.

The Ugg brand, which recently partnered with designer Telfar Clemens, experienced a significant increase in net sales during the third quarter. Sales for Ugg reached $876.8 million, a 12.2% jump from $781.1 million in the same period the prior year. Another standout performer for Deckers Brands was Hoka One One, which saw an impressive 52.1% increase in net sales, totaling $141.6 million compared to $93.1 million in the previous year.

In contrast, net sales for Teva decreased by 8.7% to $15.7 million, while Sanuk experienced a 17.3% decrease to $7 million. The company’s other brands, predominantly Koolaburra, Ugg’s sister brand, reported a 5.5% decrease in net sales, reaching $36.7 million.

Deckers Brands experienced growth in both wholesale and direct-to-consumer (DTC) sales channels. Wholesale net sales for the third quarter increased by 6.2% to $557.9 million, while DTC net sales showed substantial growth of 25.7%, reaching $519.9 million. DTC comparable sales also increased by 33.8% compared to the same period last year.

Dave Powers, the president and CEO of Deckers Brands, attributes their success to the strong demand for Ugg’s diverse range of products and the global expansion of Hoka One One. Powers also acknowledges the crucial role played by the company’s robust e-commerce capabilities and the resilience of its teams in overcoming challenges presented by the ongoing pandemic. With a strong brand portfolio, a stable operating model, and a solid balance sheet, Deckers Brands is well-positioned for continued success.

During the third quarter, approximately 75% of Deckers Brands’ global stores remained open. Domestic net sales increased by 19.3% to $770.5 million, while international sales grew by 4.8% to $307.2 million. The company reported cash and cash equivalents of $1.157 billion.

Due to the uncertainties caused by the ongoing pandemic, Deckers Brands has chosen not to provide full-year guidance for fiscal year 2021. The company continues to adapt its operations in response to the challenges posed by COVID-19, closely following guidelines from expert agencies, health officials, and local authorities.

In conclusion, Deckers Brands has achieved remarkable revenue growth in the third quarter, driven by the success of Ugg, Hoka One One, and its e-commerce endeavors. With a strong brand portfolio and a resilient operational model, the company remains well-positioned for continued success despite the ongoing challenges posed by the pandemic.

Sources:
Deckers Brands Official Website
Deckers Brands Q3 2021 Financial Results