‘Innovation’ drives 25% sales rise at UGG
27/10/2014
Sales at its biggest company, sheepskin brand UGG, grew 24% to $417.1 million. The increase was driven by higher wholesale sales, the contribution from store openings and an increase in ecommerce sales. There was a slight decline in same-store sales and international distributor sales.
Teva sales grew 14.9%to $20.7 million, Sanuk’s increased 3.2% to $19 million and ‘other brands’ grew 76.5% to $23.5 million.
“Our second quarter results reaffirm that Deckers Brands is a growth company,” said CEO Angel Martinez. “Both our revenues and earnings grew more than 20% for the second quarter compared with the same period last year, driven by the performance of our strongest, most diversified product line-up ever.
“We believe that we are well positioned for another successful holiday season, and more importantly, to drive growth for many years to come.”
The company suffered from high sheepskin prices in 2011 and 2012 and moved towards Ugg Pure – a wool woven into a ‘durable backing’ – in 2013.
Deckers now expects fiscal year 2015 revenues to be $1.8 billion or 15% over the year to the end of March 2014, up from the previous guidance of 14%.
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