Deckers Outdoor Corporation, which is the parent company of Ugg and other footwear brands such as Teva, has already taken over distribution in the U.K. and the Benelux countries. It was handling the French market from its Dutch office, but it has now decided to set up a full-fledged subsidiary in this country.
The company's new office in Paris will see the French staff double to 32 people who will be supervised by a freshly minted country manager, Jean-Michel Herrault, who previously ran a French brand of sports clothing, Eider.
Meanwhile, Deckers has reported excellent financial results for the third quarter ended Sept. 30, thanks in particular to Ugg's continued growth, supported in part by a broadened range of products, which included a line of shoes handcrafted in Italy.
A 47.3 percent increase in Ugg's sales and a contribution of $15.6 million for Sanuk, the action sports brand acquired on July 1, helped raise Deckers' total revenues by 49.1 percent to $414.4 million for the quarter, with increases of 26 percent in the U.S. and 114 percent in the rest of the world.
Ugg's sales got a big boost from the takeover of the distribution in the U.K. and Benelux, but also from higher sales in the U.S. and by distributors in Italy, Germany and Russia. For the full year, Ugg is expected to post a higher-than-expected sales increase of 32 percent.
As for Teva, Deckers' brand of sports sandals, sales rose by 7.3 percent to $14.7 million in the quarter. The sales of other brands – Ahnu, Tsubo, Mozo and Simple – decreased by 11.7 percent due to the discontinuation of Simple.
The company's gross margin improved by 1.8 percentage points to 49 percent, despite a 10 percent increase in input costs, and its net income increased by 48.5 percent to $62.3 million.