Despite macroeconomic and currency headwinds, Deckers Brands reported another quarter of sales gains thanks to its star running brand Hoka.
In the third quarter of 2023, the Goleta, Calif.-based company reported net sales of $1.346 billion, an increase of 13.3% compared to the $1.188 billion seen the same quarter last year. The bump in sales caused a modest increase in Deckers stock, nudging up 0.67 points in after-market trading on Thursday.
By brand, Hoka performed the best, with net sales jumping 90.8% to $352.1 million compared to $184.6 million in same time last year. Teva was the only other brand seeing green in the quarter, up 48.3% to $30.5 million compared to $20.6 million.
As for Ugg, which has been on a winning streak, the brand saw a 1.6% decrease in sales to $930.4 million compared to $945.9 million the same time last year. At Sanuk, net sales decreased 7.4% to $5.6 million compared to $6.1 million. And, in Deckers other brands, primarily composed of Koolaburra, net sales decreased 12.1% to $26.9 million compared to $30.6 million.
By channel, Deckers saw success across the board. Wholesale net sales increased 8.0% to $646.3 million in Q3, while direct-to-consumer (DTC) net sales increased 18.7% to $699.3 million.
Dave Powers, president and CEO of Deckers Brands said in a statement that the company’s brands delivered “another stellar quarter” led by Hoka and its DTC business.
“The consistent strength of Deckers results thus far in fiscal year 2023, despite macroeconomic and currency headwinds, are the result of our brand marketplace management actions and dedication to long-term strategic priorities,” said Powers. “We believe Ugg and Hoka are two of the healthiest, well positioned brands in their respective markets, and with the strength of our operating model, Deckers is poised for continued success going forward.”
Looking ahead, Deckers expects net sales in the range of $3.50 billion to $3.53 billion for the full fiscal year 2023.