So we feel like we have the inventory to do what we need to do. It’s not a bad thing to leave a little bit of demand on the table if that’s the case. And at the same time we have a very exciting launch with UGG Weather Extreme, the UGGextreme collection coming in which is a new category of focus for us going forward. So I think we’re in pretty good shape. We have the inventory in the right styles which we didn’t last year and I think we’ve done a great job of adjusting and cleaning up the assortment and putting more power across the five to 10 styles that are really driving the growth.
Steve Fasching: Yes, and I think Paul just add to that, one of the things with the strength that we’ve seen in Q2 on some of the styles that have been very popular and we’re selling down the inventory. We are looking to expedite some of that back in but there’s a limit, right and we won’t necessarily be able to chase every sale nor would we want to chase every sale. So we’ll see how things play out. But we’re set up very well. It is the driver of our full-year increase. So we’re very encouraged going into the back half of the year.
Paul Lejuez: Thanks, guys. Good luck.
Steve Fasching: Thank you.
Operator: The next question comes from Sam Poser of Williams Trading. Please go ahead.
Sam Poser: Thank you for taking my question guys. First of all, Erinn, you’ve got most of it but Teva, Sanuk and other are my normal question and then I have a whole bunch of questions.
Erinn Kohler: Hi, Sam. Sure. I’ll start off with that. So for the second quarter for Global Wholesale Industry as you noted some of this I think you can pull out of what we said but for UGG, $452 million; HOKA, $263 million, Teva, $12 million; Sanuk, $3.3 million and that leaves you with other at just about $30 million.
Sam Poser: Okay. All right, so just skip this out of the way. With Sanuk, are you going to take that as a discontinued operation and going to the balance of the year or how should we think about that in the guidance and so on?
Steve Fasching: Yes, and so, no, we’re not looking to break that to discontinued operations. So we’ll continue to report it as we seek to find a buyer. So that’s the current plan, yes.
Sam Poser: Okay, and then with the way this is flowing in the back half, was there a lot of pull forward in the UGG Wholesale business? I mean, should we expect UGG Wholesale, especially in the third quarter, to be down given how much came in in Q2?
Steve Fasching: Yes, so again depending on your model, because we haven’t guided the quarter. But yes, what we’re basically saying is there is a portion of wholesale orders that occurred in Q2 that you may have planned for in Q3. And that is, what’s leading to the increase in the UGG performance. So again, we haven’t given quarterly guidance, so I don’t know exactly how you had it broken out. But yes, I think safe to say that some of the increase in UGG that we’ve seen in Q2 is wholesale orders that were moved forward into Q2.
Dave Powers: Yes, and I think what is still to be determined is how much of the upside in we captured in Q2 was just earlier demand or brand heat that will continue through Q3. And so either way, I think we’re positioned well, depending on how the market moves. But at this point, the demand seems strong and healthy, and we think it should continue. But as we said, we’re heading into an unknown macro environment that’s hard to say what it’s going to look like. But we’re optimistic that some of that demand was brand heat that will continue through Q3.
Sam Poser: So, and then, okay, and then on HOKA, the same kind of question, given that you’re moving a big launch, you’re moving a big launch away or moving launches out, does that mean that the wholesale business in Q3 would look more like Q2 and then from maybe as a percentage, but then accelerate into Q4. And then, but there’s no real reason for DTC. It appears to slow down very much. I mean, that’s good momentum on new product. You’ve launched a lot of new product in the last few weeks, I’ve noticed.
Dave Powers: Yes, so Sam, it’s a good question. And there’s kind of different ways to look at it. So, I think, as I said, and Dave has said, we haven’t changed the way we’re looking at HOKA for the year. So, I think kind of that’s most important. Remember, the underlying fundamentals of that is a very controlled wholesale marketplace, right? And so, as we think about Q3, as Dave talked about, we are controlling wholesale in that Q3 period, because we want the market to be seen as we’re launching some new product in Q4. So, I think that’s an important underlying. The other then is, remember, we had very large DTC comps a year ago. So, when you’re looking at some of those — our DTC comps last year, Q3 was 107. I think Q4 was like 97%.
So, we’re coming off of very big growth quarters a year ago. So, that’s the other thing to consider, right, as we’re talking about this. So, there’s growth. Then the other thing, I think, to take into account is what we’ve said about full-year growth. So, as we’ve said full-year growth, our first-half has exceeded that average full-year growth guide number, which means, by definition, the second-half is going to be a little bit lower, because we’re controlling, again, that wholesale component of the marketplace. This is part of our strategy. Now, as we talk and some of our partners have discussed, there will be some wholesale expansion at the end of our Q4, right? So, that won’t necessarily get captured in our back half, but it’s a setup for next year.
So, again, everything is playing out like we’ve said. The brand continues to perform very well, and I think there are some dynamics that are in there that are important to understand, but most importantly is the brand continues to perform very well.
Dave Powers: Yes, and the last thing I would add to that is last year, we were opening new doors in Q3. So, there was some door expansion, and so the setup quantities led to some of the growth in those doors. This year, we’re still maintaining a net neutral through Q3 on door growth. So, comping that door growth last year could have a little bit of an impact on the wholesale performance, too.
Sam Poser: Got you. And then lastly, Dave, you’ve been now, how long at Decker’s?
Dave Powers: A little over 11 years, we’ve had a long relationship, Sam. What’s that?
Sam Poser: Does that make you the elder statesman?
Dave Powers: No.
Sam Poser: So, you weren’t in charge of that collaboration?
Dave Powers: No, I was excited to see it, but I want to take credit for that. That was Ann and the team.
Sam Poser: Okay, all right. Thanks very much and have a continued success.
