Deckers Outdoor Corporation

Sector: Apparel and footwear Countries of operation: Sells in Canada, China, the US and over 47 other countries Key product categories: Accessories, apparel and footwear Annual Metrics [caption id="attachment_148726" align="aligncenter" width="702"] Fiscal year ends on March 31 of the same calendar year[/caption]   Summary Founded in 1973 and headquartered in Goleta, California, Deckers Outdoor Corporation is a global company that designs, markets and distributes accessories, apparel and footwear developed for both casual lifestyle use and high-performance activities. The company’s brands include HOKA, Koolaburra, Sanuk, Teva and UGG. As of March 2021, the company operates a total of 140 stores, including 71 concept stores and 69 outlet stores. Company Analysis Coresight Research insight: Driven by the consumer shift to casual apparel and footwear, Deckers Outdoor posted double-digit sales growth in its fiscal year 2022. The company saw strong growth in the HOKA and UGG brands—largely driven by its strategy to grow the brands and build up direct-to-consumer (DTC) channels. For UGG, the company is acquiring new consumers by expanding its assortment—for instance, adding apparel items in addition to footwear. We believe that the current casualization trend in apparel, combined with the company’s strategies, will help UGG and HOKA continue to grow—and fuel the company’s overall growth. Additionally, the company has begun responding to the growing consumer awareness of sustainability, reducing environmental impact of its UGG products. We believe the sustainability trend will remain strong in the future, presenting an opportunity for the company in the long term.

Tailwinds	Headwinds
The consumer pivot toward casual-style, comfortable apparel Consumer’s growing awareness of sustainability Consumers are increasingly looking for ways to express their individuality through how they dress	A challenging overall environment as the pandemic continues to disrupt operations, manufacturing velocity and freight speed Pressure from competitors such as Skechers

  Strategy On February 3, 2022, Deckers Outdoor reiterated its business strategies, focusing on the following four pillars: 1. Focus on growing HOKA’s sales

• Focus on HOKA, emphasize running and outdoor categories and introduce innovative products that resonate globally with younger, more diverse consumers
• Launch optimized digital marketing online to acquire consumers and increase retention rates

2. Diversify UGG’s product assortment

• Diversify and expand UGG’s product offerings, including adding apparel items, and create more year-round styles

3. Build the DTC Channel

• Create a strong e-commerce infrastructure, to offer consumers convenience while shopping
• Optimize its digital marketing strategy to accelerate global online consumer acquisition and retention rates
• Optimize domestic and international consumer loyalty programs

4. Develop international market

• Adopt localization strategies—such as working with local key opinion leaders and platforms in China to market products

Revenue Breakdown (FY22) [caption id="attachment_148728" align="aligncenter" width="480"] Source: Deckers Outdoor[/caption]   Company Developments

Date	Development
July 13, 2022	Teva collaborates with eyewear designer Coco and Breezy for a capsule collection of summer essentials.
July 7, 2022	Sanuk, a subsidiary brand of Deckers, announces an exclusive capsule collection with Donavon Frankenreiter, a professional surfer and musician, and Petra Frankenreiter, an fashion-forward entrepreneur.
July 6, 2022	Deckers Outdoor Corporation appoints Anne Spangenberg as President of Fashion Lifestyle.
June 10, 2022	Deckers Outdoor Corporation promotes Angela Ogbechie to Chief Supply Chain Officer.
June 9, 2022	Deckers Outdoor Corporation announces the sixth iteration of its ongoing collaboration with the Grateful Dead, an American rock band formed in 1965. The collaboration features men's and women's summer slip-ons and sandals made with recycled materials.
May 19, 2022	Deckers Outdoor Corporation announces that Wendy Yang is stepping down from her role as President of Performance Lifestyle, effective as of May 31, 2022.
May 10, 2022	Deckers Outdoor Corporation announces the next iteration of its partnership with Central Coast neighbor Pacific Pride Foundation, the largest LGBTQ+ center between Los Angeles and San Francisco.
March 25, 2022	HOKA announces a first-of-its-kind collaboration with Boston-based streetwear boutique Bodega.
1, 2021	HOKA collaborates with Moncler to launch a new collection of mountain-ready footwear.
October 19, 2021	Teva and US-based apparel brand collaborate on environmentally footwear.
September 28, 2021	Andrea O’Donnell steps down as President of Fashion Lifestyle.
September 16, 2021	Teva collaborates with on its “Ultimate Sole Mates” capsule collection.
April 7, 2021	Teva launches “TevaForever Recycling Program” with TerraCycle.

  Management Team

• Dave Powers—Chief Executive Officer, President and Director
• Steven J. Fasching—Chief Financial Officer
• David E. Lafitte —Chief Operating Officer

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Source: Company reports