Shares for Deckers Brands were up over 8 percent in after-hours trading on Thursday as the company continues to see robust sales from Hoka and Ugg.
The Goleta, Calif.-based footwear company reported net sales in the first quarter of 2025 increased 21.1 percent to $825.3 million compared to $675.8 million the same time last year. Net income in the period was $115.6 million, up from $63.6 million in the same quarter last year.
Deckers also saw a bump in its direct-to-consumer channel, reporting an increase of 24 percent to $310.6 million compared to $250.4 million in Q1 of fiscal 2024. Wholesale net sales for Q1 were up 21 percent to $514.8 million compared to $425.4 million the same time last year.
By brand, Hoka saw the largest increase in sales in the first quarter, reporting a 29.7 percent rise to $545.2 million compared to $420.5 million in Q1 2024. Ugg also continued its winning streak in the period, posting net sales of $223.0 million, a 14 percent increase from $195.5 million last year.
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Teva and Sanuk did not fare as well this quarter. In Q1, Teva saw a 4.3 percent decline in net sales $46.3 million compared to $48.4 million the same time last year. Sanuk reported a 28.4 percent drop in net sales to $6.9 million in the period compared to $9.6 million last year.
And interestingly, the company’s other brands division, primarily composed of Koolaburra, reported net sales increased 123.5 percent to $4.0 million compared to $1.8 million the same time last year.
Outgoing president and chief executive officer Dave Powers passed the baton to his successor in a statement on Thursday. “As this is my last quarter to report as CEO, I am pleased to share these strong results to kick-off fiscal year 2025,” Powers said. “Hoka and Ugg continue to drive robust full-price demand in the global marketplace by delivering compelling product that consumers love. Deckers has an exciting future ahead as Stefano transitions into his new role as CEO next week.”
At the same time, incoming president and CEO Stefano Caroti added his enthusiasm for taking over the reins at the company, stating that fiscal year 2025 is “off to a great start.”
“I’m excited by the opportunity to now lead Deckers and its iconic brands, with the support of our talented teams that remain focused on the long-term opportunities ahead for this great company,” Caroti said.
In its earnings release on Thursday, Deckers noted that it has entered into an agreement to divest the Sanuk brand, which is expected to close in August 2024. No other details were provided at the time of this story, but the notice follows the company’s announcement in October that it was seeking to divest the label.
In October, Powers told analysts that the decision to divest Sanuk was tough both “emotionally and financially,” but that the brand deserves “a good home” and someone who can “make it a priority” instead of being the fourth and fifth brand in Deckers portfolio. “I think it’s the best thing for the company and the brand to do this,” the exec said at the time.
Looking ahead, Deckers is still expecting net sales for the full fiscal year 2025 to increase approximately 10 percent to $4.7 billion, with diluted earnings per share expected to be in the range of $29.75 to $30.65.
