Deckers Brands said that Dave Powers is retiring as president and CEO, effective August 1, and he seems all set to leave the athletic shoes and apparel company on a high as sales significantly increased during the third quarter.
Deckers has named Stefano Caroti as president and CEO, effective upon the retirement of Powers. Powers will remain in the company as a member of the board through the annual meeting of stockholders next year.
Caroti, who is currently serving as the company’s chief commercial officer, is expected to be nominated as a member of the board at the annual meeting of stockholders this year.
Prior to his current role as chief commercial officer, Caroti served as Deckers’ president of omni-channel for eight years. He also worked as interim president at Hoka and as chief commercial officer and MD at Puma. He previously held senior leadership positions at Nike.
“Stefano has extensive industry experience and has seamlessly led our omni-channel, regional and Hoka brand operations during some of Deckers’ most pivotal years,” said Mike Devine, chairman of the board at Deckers.
“He has been a key member of the executive team helping to craft and progress our consumer-focused strategy and inclusive, engaged culture. Stefano’s demonstrated success and passion for our values make him the clear choice to lead Deckers into the future.”
Third-quarter sales soars
Deckers booked sales of $1.56 billion in the third quarter, up 16 per cent from the year-ago period, driven by positive performance in both the Ugg and Hoka brands.
The company’s direct-to-consumer net sales grew 22.7 per cent to $858.1 million while wholesale net sales jumped 8.6 per cent to $702.2 million.
Domestic net sales inched 15.6 per cent higher to $1.05 billion while international net sales climbed 16.7 per cent to $511.9 million.
Net sales of Ugg increased 15.2 per cent to $1.07 billion and Hoka grew 21.9 per cent to $429.3 million. However, Teva declined 16.2 per cent to $25.6 million, as well as Sanuk which fell 28.9 per cent to $4.0 million. Other brands, mainly composed of Koolaburra, saw net sales expand 10.0 per cent to $29.6 million.
Gross margin improved to 58.7 per cent as net income widened 39.9 per cent to $389.9 million.
“Our brands delivered Deckers’ largest quarter in history, with record revenue and earnings as both Hoka and Ugg drove exceptional performance in the quarter, led by our DTC channel and high levels of full-price selling,” said Powers.
“We believe Hoka and Ugg are two of the healthiest brands in the industry and we remain focused on executing against our strategic initiatives to drive long-term future success.”
