Long-time Deckers Brands President and CEO Dave Powers will retire in August, leaving the company with two core businesses that continue to gain ground.
Deckers made the leadership announcement Thursday, along with the company’s results for the fiscal third quarter ended Dec. 31.
“Serving as CEO of Deckers has been a great honor,” Powers said on a call with analysts Thursday. “And it’s a privilege to work with some of the best talents that this industry has to offer. I’m incredibly proud of our accomplishments and our unique culture built on doing good and doing great.”
Powers, who joined Deckers in 2012 and was named to the top spot in 2016, will continue to hold a board seat after his Aug. 1 departure.
Succeeding Powers is Chief Commercial Officer Stefano Caroti, who has also served as Deckers’ omnichannel president and interim Hoka president. Caroti, prior to joining the company, was also chief commercial officer and managing director at Puma, and worked at Nike Inc. as vice president of EMEA commerce among other positions.
Hoka’s collaboration with Opening Ceremony. Photo courtesy of Hoka.
Big Strides
Powers will leave a footwear company that’s become a dominant player in the marketplace, with its two largest brands being Ugg and Hoka. Both have made significant strides in evolving their respective assortments under Powers’ leadership. There’s also an upcoming brand that Powers called a “super sneaker.” Deckers plans to soft launch the brand in the coming weeks with features found in performance running at price points above $200.
Deckers’ accomplishments and future plans make it a good time for the leadership transition, Powers said.
“Deckers continues to demonstrate exceptional performance and we have a strong foundation from which to continue driving results, a deep bench of talent, and innovative products that are resonating with consumers globally,” the CEO said.
Ugg and Hoka drove the business during the recently ended December quarter. Ugg net sales rose 15.2% to $1.1 billion, while Hoka jumped 21.9% to $429.3 million.
The company’s overall performance led Deckers to boost its guidance for the full fiscal year, which ends March 31.
Net sales for the year are estimated to be $4.15 billion, compared to previous guidance of $4.03 billion. Earnings per share for the current year are now projected to come in between $26.25 and $26.50, compared with an earlier estimate of $22.90 to $23.25.
Teva Update
Elsewhere in the Deckers portfolio, outdoor sandal and shoe brand Teva’s net sales were down 16.2% to $30.5 million. While Teva is small relative to Ugg and Hoka, Deckers has said it sees growth potential in the business.
The company’s division of “other brands,” which is mostly made up of sales from Koolaburra, rose 10% to $29.6 million.
Sanuk Update
From Sanuk’s collaboration with Matsumoto’s. Photo courtesy of Sanuk.
While Thursday’s update focused on the larger brands, much of the rest of the portfolio faced business pressures.
Sanuk sales continued to slide for the eighth quarter in a row as Deckers shops the casual shoe brand around for a buyer. Deckers said in October it planned on selling the business as it focuses on businesses it thinks hold greater long-term potential, such as Hoka and Ugg.
Net sales for Sanuk fell 28.9% to $4 million in the fiscal third quarter ended Dec. 31. The last time the business notched a quarterly gain was in the quarter ended Sept. 30, 2021.
Deckers bought Sanuk in 2011 for $120 million in cash, plus performance payments. The business peaked under its current parent at $114.7 million in sales for fiscal year 2015. Sales of the shoe brand totaled $38 million in the most recent fiscal year ended March 31.
