Hoka’s impressive sales performance bolsters Deckers Brands’ first-quarter growth, showcasing its influence in the market.
- Deckers Brands reports a significant 22% increase in total net sales, amounting to $825.3 million.
- Hoka, the thriving running trainer brand, contributes two-thirds of Deckers’ quarterly sales, highlighting its market impact.
- Direct-to-consumer sales across Deckers Brands surge by 24%, affirming robust consumer demand.
- The strategic replacement of Dave Powers by Stefano Caroti marks a leadership transition at Deckers.
In a remarkable display of market vitality, Hoka’s net sales soared by 29.7% year on year, reaching $545.2 million (£425.5 million), thereby powering a substantial 22% uplift in Deckers Brands’ total net sales. This notable growth, as reported for the first fiscal quarter ending 30 June 2024, underscores the growing consumer preference for Hoka’s innovative offerings.
Deckers Brands experienced an overall 22.1% rise in net sales, climbing to $825.3 million (£643.2 million), with constant currency basis sales increasing by 23%. A significant portion of this success is attributed to Hoka, which delivered 66% of the total net sales for the quarter. This highlights Hoka’s prominent role in driving Deckers’ financial performance.
The company also witnessed a robust 24% rise in direct-to-consumer (DTC) net sales across all its brands, reaching $310.6 million (£242 million). This growth is a testament to Deckers’ successful consumer engagement strategies across its portfolio, which includes Ugg, Teva, Sanuk, and Koolaburra.
While Ugg’s net sales grew by 14% to $223 million, Koolaburra saw an impressive surge of 123.5% to $4 million (£3.1 million). However, not all brands mirrored this upward trajectory; Teva and Sanuk experienced declines of 4.3% and 28.4%, respectively, during this period. Despite these setbacks, the overall performance remained robust.
Dave Powers, President and CEO of Deckers, expressed his satisfaction with the results, emphasising that Hoka and Ugg continue to drive robust full-price demand in the global marketplace by delivering compelling products that consumers love. His planned succession by Stefano Caroti, currently CCO, signifies a strategic leadership transition aimed at sustaining this momentum.
Deckers Brands’ first-quarter results exemplify Hoka’s pivotal role in driving its substantial financial growth.
