Deckers posts strong Q3, names Stefano Caroti as new CEO

Deckers Brands net sales increased 16 percent to 1.560 billion dollars in the third quarter, while on a constant currency basis, net sales increased 15.1 percent.

The company also announced that Dave Powers has decided to retire as president and CEO, effective August 1, 2024. Stefano Caroti, the company's chief commercial officer, will be appointed president and chief executive officer, effective upon Powers' retirement.

"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 in a statement.

"Since joining Deckers in 2012, we have experienced explosive growth driven by incredible – and still increasing – brand heat across UGG and Hoka. I'm confident Deckers will continue to excel throughout this transition and into the future with Stefano at the helm," added Powers.

Highlights of Deckers Brands’ Q3 results

The company’s direct-to-consumer (DTC) net sales increased 22.7 percent to 858.1 million dollars and DTC comparable net sales increased 21.8 percent. Wholesale net sales increased 8.6 percent to 702.2 million dollars.

Domestic net sales for the quarter increased 15.6 percent to 1.048 billion dollars, while international net sales increased 16.7 percent to 511.9 million dollars.

Gross margin rose to 58.7 percent, operating income to 487.9 million dollars and diluted earnings per share increased to 15.11 dollars.

Deckers’ performance across brand portfolio and outlook

UGG brand net sales increased 15.2 percent to 1.072 billion dollars, Hoka brand net sales increased 21.9 percent to 429.3 million dollars, Teva brand net sales decreased 16.2 percent to 25.6 million dollars and Sanuk brand net sales decreased 28.9 percent to 4 million dollars.

The company’s other brands, primarily composed of Koolaburra, increased net sales by 10 percent to 29.6 million dollars

For the full year, the company’s net sales are now expected to be approximately 4.15 billion dollars, gross margin is expected to be approximately 54.5 percent and diluted earnings per share to be in the range of 26.25 dollars to 26.50 dollars.