Deckers Brands raised its 2025 guidance after net sales skyrocketed in the second quarter ending Sept. 30, helped by impressive results from Hoka and growth in both wholesale and direct-to-consumer sales.
Net sales at the parent company of Hoka, Ugg and Teva grew by 20% to $1.311 billion compared to the same quarter last year.
“These excellent results reflect the continued strength of our full-price demand enabled by innovative products that resonate with consumers, disciplined global marketplace management, and thoughtful product segmentation,” said CEO Stefano Caroti, previously Deckers’ COO who succeeded former CEO Dave Powers in August, on the company’s Oct. 24 earnings call.
Deckers reported that:
- Net sales at Hoka grew by 34.7% to $570.9 million.
- Net sales at Ugg increased by 13% to $689.9 million.
- Teva’s net sales increased by 2.3% to $22 million.
- Sanuk’s net sales decreased by 47.6% to $2.8 million. Sanuk was sold to Lole in August.
- The company’s other brands, such as Koolaburra, reported a 15.8% net sales decline to $25.8 million.
Direct-to-Consumer (DTC) net sales increased 19.9% to $397.7 million and wholesale net sales increased 20.2% to $913.7 million in the quarter.
Domestic net sales increased 14.2% to $853.9 million and international net sales increased 33% to $457.4 million.
Net income was $242 million, up by nearly 36% compared to the same quarter last year.
The company adjusted its full fiscal year outlook based on the results, projecting a net sales increase of 12% to $4.8 billion for the year ending March 31, 2025. Its previous forecast was $4.7 billion.
Hoka Revenue Up by More Than 34%
Caroti congratulated the Hoka global team and noted that the footwear brand eclipsed $2 billion in revenue over the trailing 12-month period for the first time.
“Hoka performance continues to be driven by the strength of full-price demand across multiple categories around the globe,” Caroti said. “The Hoka team has continued to refine their multi-category offense, which is powered by core focus to win the road, dominate trail, and develop fitness and performance lifestyle.”
Heritage franchises such as Hoka’s Clifton and Bondi collections are still in-demand, and the brand has balanced those offerings with new options like the Skyflow and Mach X 2.
Hoka celebrated the Mach X 2 launch with a challenge on the running app Strava, inviting consumers to the brand’s new Fifth Avenue flagship store in New York City and other activations at the Berlin Marathon and the upcoming Frankfurt Marathon in Oxford Half.
In the trail category, HOKA continued to see broad adoption of its updated and popular Speedgoat and Tecton X3 models. The Tecton X3 is the commercialized version of the Tecton X prototype, which was worn by the last two winners of the Ultra-Trail Mont Blanc race, a 106-mile ultra marathon in the French Alps that’s sponsored by Hoka.
Hoka is focused on growing brand awareness in international markets, and international revenue growth outpaced growth in the U.S., Caroti said.
“At the same time, the U.S. delivered balanced growth across DTC and wholesale, aligned with our strategy for this fiscal year,” Caroti said, noting that wholesale sales grew by33% at the brand. “Within DTC, Hoka continued to drive growth through increases in consumer acquisition and retention. In wholesale, Hoka benefited from select increases with key partners who experienced a positive back-to-school season with Hoka.”
Hoka’s sales are projected to increase by 24% this fiscal year compared to last.
Ugg Sales Up by 13% in Second Quarter
Uptake of Ugg’s Golden and Lowmel collections both made the brand’s top 10 styles by revenue, helping Ugg through shoulder season. International sales grew more than the global brand average, Caroti said, and consumers will pay full price for Ugg’s Tasman and Ultra Mini collections.
“The Ugg team has done this by allocating core colors and championing new seasonal colors, building complementary silhouettes like weather hybrids and platform variations, and driving heat through aspirational collaborations, including recent launches with [fashion houses] Collina Strada and Gallery Department,” Caroti said.
Ugg is focused on broadening its appeal to more consumers, partnering with pop singer Post Malone as a brand ambassador for a global campaign.
Sales grew the most in international markets, and colder weather in Europe is already driving similar demand to last year’s, Caroti said.
“This has driven exceptional DTC growth in the region with first half revenue nearly doubling compared to two years ago,” Caroti said, noting that wholesale sales grew by 14% at the brand.
Demand in Asia for Ugg is still strong, despite “a more pressured consumer environment,” Caroti said. In the U.S., Ugg is performing well, he said, with most of the first-half revenue coming from wholesale sell-in. Wholesale sell-through was strongest among accounts that primarily serve younger consumers, as Ugg remains a popular brand among the 18- to 34-year-old cohort, he said.
“Looking ahead, UGG is well positioned to maintain consumer demand through the peak holiday season with an attractive and elevated product assortment,” Caroti said. “Although we expect a more promotional environment than the exceptionally low levels experienced last year, we’re confident we will maintain premium levels of full price selling as [Ugg] delights consumers this holiday season.”
Ugg’s sales are now projected to grow by “low single digits,” for the full year said CFO Steven Fasching.
Kate Robertson can be reached at kate.robertson@emeraldx.com.
