Deckers Brands: Initiation of Coverage – Why Their DTC Strategy Will Blow Your Mind!

This is our first report on global footwear and apparel major, Deckers Outdoor. The company saw a strong fiscal third quarter for 2024, but the company did recognize certain risks and uncertainties that could potentially impact future performance. Total company revenue saw an increased 16% to reach $1.56 billion, largely thanks to full-price consumer demand. Direct-to-consumer revenue experienced an increase of 23% and represented a record 55% of total company revenue. Deckers Brands’ two leading brands, UGG and HOKA, performed well. Total UGG revenue increased 15% to achieve its first ever $1 billion quarter, and total HOKA revenue increased 22% to $429 million. Gross margins also saw an increase, jumping over 500 basis points to a record 58.7%. The company’s diluted earnings per share increased by 44% to $15.11.