Deckers Outdoor: Ugg and Hoka One One in great shape

By

Olivier Guyot

Published
Oct 28, 2014

Ugg continues to grow at a significant rate. With nearly 329 million euros, the brand posted sales up 23.8% for its quarter ending 30 September compared to the same period last year.

The brand emphasises that this growth is due to its wholesale activity but also to the performance of its new Internet site and store openings. Moreover, it directly took on the German market. The brand is also investing in the launch of its homewear collection in new markets: cushions, rugs and plaids are now all available.

In a more general sense, Deckers recorded growth across all of its activities. So much so that the group is even above the Ugg group on its own. Deckers Outdoor thus posted sales up 24.2% to 379 million euros (more than 480 million US dollars).

It owes this in particular to its "Other brands" cluster, which recorded a 76.5% increase in its sales to 18.5 million euros. In this segment, the group saw the sales of its recently acquired brand Hoka One One increase by 7.3 million euros.

In parallel, Teva saw a 14.9% increase to more than 16 million euros and Sanuk sales improved by 3.2% to 15 million euros.

The group, which opened 33 additional stores compared to 30 September 2013, specifies that activity in its stores progressed by 20.1% to 50 million euros. Nevertheless, on a comparable basis, sales have deteriorated by 8.8%.

However, its e-commerce activities reached 17 million euros, or a 45.1% increase compared to the same period last year.

The group has noticed that its gross margin is improving, rising from 43.2% to 45.6%, while its operational result went up from 37 million to 47 million euros. Its net result is up 23% to 32 million euros.

For its entire financial year, the Deckers group has revised its ambitions for growth upwards. Whereas before it was counting on a 14% increase in its revenue, it is currently banking on a 15% increase to 1,439 billion euros (1.825 billion US dollars).