Ugg, Hoka owner Deckers reports record quarterly sales, says CEO will retire

Deckers Brands announced on Thursday record sales for the third quarter, adding Dave Powers has decided to retire as president and chief executive officer of the U.S. footwear firm, effective August 1.

The owner of Ugg and Hoka brands said net sales increased 16% to $1.56 billion during the three months ending December 31, with domestic net sales up 15.6% to $1.048 billion, and international sales up 16.7% to $511.9 million.

By channel, Direct-to-consumer sales increased 22.7%, and wholesale revenues lifted 8.6% to $702.2 million.

By brand, Ugg and Hoka were once again star performers in the California-based company’s portfolio. Ugg brand sales increased 15.2% to $1.072 billion, outpaced by running shoe Hoka, up 21.9% to $429.3 million.

Other brands, primarily composed of Koolaburra, sales increased 10% to $29.6 million, while Teva and Sanuk recorded sales declines of 16.2% and 28.9%, respectively.

On the strong performance, the company lifted its full-year sales guidance, with net sales now expected to be approximately $4.15 billion.

“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,” said Dave Powers, president and chief executive officer.

“Global gains in awareness, combined with elevated consumer connections and innovative product offerings, continued to drive unparalleled demand for our brands. This, coupled with our disciplined operating approach, dedicated focus on marketplace management and fortified balance sheet, puts Deckers in a position of strength as we enter our last fiscal quarter of 2024. We believe Hoka and Ugg are two of the healthiest brands in the industry and we remain focused on executing against our strategic initiatives to drive long-term future success.”

Coinciding with the earnings update, Deckers revealed Powers will retire from his role as president and CEO, effective August 1. 

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 succeed the chief executive, the company added.