Deckers Outdoor Corporation (NYSE:DECK) Q3 2023 Earnings Call Transcript

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Steve Fasching: Yeah, and Jon, this is Steve. On the Q3, Q4 HOKA dynamic. Again, it goes back to a little bit, you know, we’re dealing with disruptive supply chain last year, right. So there’s a dynamic on the year-over-year comparison in Q3 and Q4. Then to your point on kind of Q4 versus Q3 this year. As we’ve had more inventory availability, we’ve been putting that into the marketplace. At the same time you know, we know as Dave said, there is more product in the marketplace. So we want to control the marketplace. You know, we’ll look and see how the brand continues to grow, it’s going to continue to grow a little bit disproportionate in percentage terms, again, because of how we’re making those comparisons to last year. But this is a little bit to our marketplace management.

We also have new models that are being introduced in Q4. So there’s some change in some of the wholesale deliveries in the quarter. But again, this is a brand that’s continuing to grow overall solid growth plan for the year, a little bit choppy between quarters, you know, and strong demand that we continue to see, that wholesalers are demanding product. So, managing the DTC business, managing the wholesale business, managing the marketplace, recognizing what’s going on there. I wouldn’t get too concerned over the Q3, Q4 dynamic. You know, we’ve just got choppy quarters going on in this year.

Dave Powers: Yeah, and I think you know, from a consumer perspective, you know, they don’t know the quarterly ins and outs, but they’re seeing the product it’s selling through very well at full price and the demand is certainly there. You know, and I think you have to pull back and look at the full year results of this brand, and especially the way both of our brands and Q3 performed in a very challenging environment, FX pressures, promotional environment, and to come out with this rate of high level €“ high price, full price sell through, healthy margins, and still momentum and demand in the marketplace. You know, that’s what we’re focused on. And so, we see this continuing and the brands as I said before, I’ve never been in a better place the brand heat that we see. And UGG and HOKA are exceptional and we’re going to continue to build on that. And, you know, invest in these brands for the long-term.

Steve Fasching: And then I think just the last thing and we’ll move on, but, you know, I think the demand that we’re seeing for HOKA is highlighted in again, our raise for our full year outlook. So that raise is being driven by the increased demand that we’re seeing from HOKA. You know, again, just speaking to the strength we continue to see with HOKA and how it’s resonating in the marketplace.

Dave Powers: And particularly, international.

Steve Fasching: Yeah, yeah.

Jonathan Komp: That’s great. Thanks again.

Dave Powers: Thanks, Jon.

Operator: The next question will be from Paul Lejuez from Citi. Please go ahead.

Paul Lejuez: Hey, thanks, guys. I’m just curious maybe on HOKA, if you can talk about a little bit more detail in terms of how much of the growth is being driven by existing accounts versus your new distribution partners? Any more color you can give around that? And then second, just curious how much has pricing been a driver in the sales change at each brand? And maybe whether that looks different within DTC versus wholesale? Thanks.

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