UGG owner enlists new CEO to drive 'record' revenue momentum

Deckers Brands, whose portfolio consists of UGG, Hoka, Teva, Sanuk and Koolabura, has promoted its CCO to President and CEO at the same time revealing the results of its "largest quarter in history".

The company has published its financial results for the third fiscal quarter ended 31 December 2023.

Third quarter results, compared to the same period the year prior, are as follows:

• Net sales increased 16.0% to £1.22 billion ($1.56 billion).
• Direct-to-consumer net sales increased 22.7% to £672.71 million ($858.1 million). Wholesale net sales increased 8.6% to £550.49 million ($702.2 million).
• Domestic net sales increased 15.6% to £820,000,000 million ($1.048 billion). International net sales increased 16.7% to £401.3 million ($511.9 million).
• Gross margin was 58.7% compared to 53.0%.
• Operating income was £314.6 million ($487.9 million) compared to £284.3 million ($362.7 million).
• Diluted earnings per share was £11.85 ($15.11) compared to £8.22 ($10.48).

Brand breakdown:

• UGG net sales increased 15.2% to £840,000,000 million ($1.072 billion).
• HOKA net sales increased 21.9% to £336.5 million ($429.3 million).
• Teva net sales decreased 16.2% to £20 million ($25.6 million).
• Sanuk net sales decreased 28.9% to £3.1 million ($4 million).
• Other brands, primarily composed of Koolaburra, net sales increased 10% to £23.2 million ($29.6 million).

Looking ahead, to the full fiscal year 2024 ending 31 March, the company expects net sales to be approximately £3.25 billion ($4.15 billion). The gross margin is now expected to be approximately 54.5%. Diluted earnings per share are now expected to be in the range of £20.58 to £20.77 ($26.25 to $26.50).

Dave Powers, President and Chief Executive Officer, commented: "Our brands delivered Deckers' largest quarter in history, with record revenue and earnings as both HOKA and UGG drove exceptional performance in the quarter, led by our DTC channel and high levels of full price selling."

In addition to publishing its financial results, the company has announced Dave Powers has decided to retire as President and Chief Executive Officer, effective 1 August 2024. Powers is expected to continue serving as a member of the Company's Board of Directors through the 2025 Annual Meeting of Stockholders.

Stefano Caroti, the Company's Chief Commercial Officer, will be appointed President and Chief Executive Officer, effective upon Powers' retirement. His appointment follows a thorough succession planning process conducted by the Board.

Mike Devine, Chairman of the Board, commented: "For more than a decade, Dave has played an instrumental role in building Deckers into the leader it is today. Dave has fostered each of our brands so that they have become consumer favourites, capitalizing on market trends and dramatically increasing shareholder value throughout his tenure."

Devine continued, "We are thrilled to name Stefano as our next President and CEO. Stefano has extensive industry experience and has seamlessly led our Omni-Channel, Regional and HOKA brand operations during some of Deckers' most pivotal years. He has been a key member of the executive team helping to craft and progress our consumer-focused strategy and inclusive, engaged culture. Stefano's demonstrated success and passion for our values make him the clear choice to lead Deckers into the future."