Deckers Brands, the Goleta, Calif.-based footwear and accessory company behind UGG, HOKA ONE ONE, Teva, and Sanuk, reported an impressive second quarter of sales growth on July 28. The company posted a 23 percent increase in net sales to $946.8 million for the quarter ended June 30, 2023, compared to $765.3 million during the same period in 2022..
This growth was primarily driven by exceptional performance from two of Deckers’ key brands: HOKA ONE ONE and UGG. HOKA ONE ONE, known for its high-performance running shoes, continued its impressive trajectory, delivering a remarkable 51.2 percent increase in net sales to $431.2 million, up from $285.2 million last year. UGG, the iconic footwear brand recognized for its cozy sheepskin boots, also exhibited strong growth with a 15.9 percent increase in net sales to $364.9 million, building on last year’s $314.9 million..
The performance of these two brands was particularly impressive considering the challenging economic climate and ongoing supply chain disruptions. HOKA ONE ONE’s robust growth was largely attributed to its strong brand resonance and consumer demand for its innovative footwear designs. Similarly, UGG’s success was driven by its continued efforts to expand its product offerings and connect with new consumers..
Another notable highlight for Deckers was the 19.6 percent increase in e-commerce sales. The company saw strong growth in direct-to-consumer channels, demonstrating the effectiveness of its omnichannel strategy. This aligns with the increasing consumer preference for online shopping, particularly in the wake of the COVID-19 pandemic..
Overall, Deckers’ financial results exceeded Wall Street’s expectations, with its adjusted earnings per share coming in at $2.36, surpassing the estimated $2.20. This solid performance reflects the company’s strategic focus on investing in brand-building, product innovation, and a seamless customer experience..
Deckers’ success underscores the resilience of its brands and its ability to navigate market challenges. The company remains well-positioned for continued growth as it continues to drive innovation and expand its global presence..
