Editor’s note: Read about the first quarter results for sister brand Hoka and Deckers Brands overall here.
Deckers Brands hopes to revitalize its Teva brand after a decline in its recently ended fiscal quarter.
Teva sales dropped 18.8% to $48.4 million in the fiscal first quarter ended June 30.
Deckers President and CEO Dave Powers said on a call with analysts Thursday that Deckers has reorganized its smaller brands, including Teva and Sanuk, and has spent time on what he called “incubation work” under the emerging brands division.
Lee Cox, who at one time served as vice president of global marketing and sales for Deckers’ darling Hoka, is currently VP and GM of the emerging brands business and was recently charged with creating a long-term strategy for Teva and Sanuk.
“Right now, they’re doing brand work, so resetting their positioning, tightening their positioning and proposition, understanding who their consumers are deeply, and elevating their innovation pipeline,” Powers said.
The CEO went on to say that Teva holds the “biggest opportunity” in the company’s emerging brand division in both the near- and long-term.
The company is delving into trail sandals for Teva that are expected to launch in early 2024. Other plans call for the rollout of closed-toe and other footwear that would make the brand relevant throughout the year.
“We have looked at a number of brands externally that we could acquire and, quite honestly, none of them look as good as Teva does. It’s a beloved brand. It’s got a great 30-plus-year history, and a lot of heritage product. And it’s healthy in the marketplace. It’s got great margins, and we think that is a brand that we invest in for the long term.”
Powers said the “resetting” within the marketplace is largely the cause of the top-line decline. Both Teva and Sanuk are cleaning up to reveal “a new and improved version of both.”
“So, we won’t see dramatic changes this year in the P&L …, but you will start to see improvement going into FY’25, both on the top line and bottom line, particularly for the Teva brand that’s a bigger opportunity,” Powers said.