Deckers Brands reported growth across its footwear properties in its Q1 earnings. The company’s first fiscal quarter of 2025, which ended June 30, saw a 22% rise in net sales to $825 million, up from $676 million the previous year. Direct-to-consumer (DTC) net sales, including digital sales, also saw a major boost, climbing 24% to $311 million from $250 million a year ago.

The company’s Hoka athletic footwear brand was the main growth driver, making up two-thirds of its net sales for the quarter.

“The brand is on track to deliver another year of healthy growth with premium products and elevated experiences that enhance our consumer connections,” said Dave Powers, Deckers’ outgoing CEO, during the earnings call.

Deckers Brands web sales by year

Deckers, which also owns Ugg, Teva, Sanuk and Koolaburra, holds the No. 51 spot on Digital Commerce 360’s Top 1000 ranking of the largest online retailers in North America. The company falls under the Apparel & Accessories category. Digital Commerce 360 projects that web sales for Deckers Brands will reach $2.1 billion in 2024.

Deckers Brands Q1 earnings growth led by Hoka and Ugg sales

Hoka set a new record in the company’s first quarter, with revenue surging 30% year-over-year to $545 million. The brand’s DTC revenue, primarily sales from its ecommerce website, grew by 33%.

Powers attributed the surge to high demand for Hoka’s products, including new launches, across the global market.

“From a DTC perspective, Hoka continues to see global gains through consumer acquisition and retention, with particular strength among retained consumers,” he said.

Ugg also delivered strong results in the quarter, with global revenue rising 14% year-over-year to $223 million, according to Powers. The growth was driven by robust full-price sales of key franchises like the Tasman and the Golden Collection, which significantly contributed to the boot brand’s DTC success in both the U.S. and international markets, he noted.

Future outlook and leadership changes at Deckers

Looking ahead, Deckers projects a 10% increase in overall revenue for the fiscal year ending March 31, 2025, reaching $4.7 billion. Hoka is expected to grow around 20%, while Ugg is expected to see mid-single-digit growth.

Powers is retiring as president and CEO on Aug. 1, with Stefano Caroti, the current chief commercial officer, set to take over both positions. Deckers also plans to nominate Caroti to the board at its 2024 annual meeting of stockholders, while Powers will remain on the board through the 2025 meeting.

Shareholders will also vote on a proposed six-for-one forward stock split during the annual meeting on September 9.

In addition, Deckers has reached an agreement to sell its Sanuk brand, which it acquired for $120 million in 2011. Details about the deal, expected to close in August, were not provided.

During the company’s October earnings call, Powers noted Sanuk’s strong product performance but said scaling the brand meaningfully within the Deckers’ portfolio would take too long.

“There’s other things that we think we can invest in, and we think that this is a brand that consumers love,” he said, adding that Sanuk “deserves a good home” versus being the “fourth or fifth brand in our portfolio.”

More Q1 earnings highlights for Deckers

For the quarter ended June 30, 2024, Deckers reported:

• Sanuk’s net sales decreased by 28.4%, to $6.9 million from $9.6 million a year ago.
• Teva’s net sales fell 4.3%, to $46.3 million from $48.4 million.

Other brands, primarily Koolaburra, saw net sales surge 123.5% to $4 million from $1.8 million.

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