Deckers Outdoor Corporation announced this week the opening of its first Brand Showcase store at the company's new headquarters at Goleta, in the Santa Barbara area of California. Measuring more than 8,000 square feet, it features an extensive range of products across all its brands: Ugg Australia, Teva, Sanuk, Tsubo, Ahnu, Mozo and Hoka One One. It will serve as an innovation laboratory to test new technologies and merchandising approaches to further improve the group's omni-channel customer experience.
Deckers has reported a 13.0 percent increase in net income to $145.7 million for 2013. Total revenues went up by 10.1 percent to $1,557 million, with increases of 0.8 percent for Teva, 9.7 percent for Ugg and 8.2 percent for Sanuk. Other brands grew by 110.1 percent to $7.4 million.
Much of the growth was attributed to the expansion of the group's retail operations. With 40 new openings in the course of the year, sales through mono-brand stores increased by 32.8 percent to $326.7 million. E-commerce rose by 29.8 percent to $169.5 million, partly through the opening of new websites for some of the group's brands outside the U.S. More store openings are planned for Ugg this year, particularly in Japan and China.
Teva's sales rose by 13.6 percent to $15.5 million in the latest quarter, driven by higher wholesale revenues in the U.S. and the rest of the world and higher sales to foreign distributors. For the full financial year, Teva raised its sales by only 0.8 percent to $116.4 million.
Sanuk boosted its quarterly sales by 45.2 percent to $22.2 million, mainly due to a jump in sales to distributors and ot higher wholesale revenues in the U.S. For the full year, the brand's sales were up by 8.2 percent to $101.7 million.
Ugg's sales rose to $1,299 million for the year. They jumped by 18.1 percent in the fourth quarter (more on this brand in one of our sister publications, Shoe Intelligence).
Deckers' other brands enjoyed a sales increases of 85.8 percent to $39.7 million for the full year, partly due to the acquistion of Hoka One One. An even higher increase of 110.1 percent to $7.4 million was recorded in the fourth quarter.
The development of new footwear models under the Hoka One One brand name such as the Conquest, which features improved styling and a new midsole materials, has helped the company to open up new outdoor and running specialty accounts.
Deckers' total order backlog was up by 24 percent at year-end, but the management predicts a sales increase of only about 10 percent and a profit increase of 8 percent for this year.
The company plans to change its fiscal year-end from Dec. 31 to March 31 to reflect the seasonality of its products