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

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Sam Poser: Thank you. And Steve, I want to commend you, I think you should run for President given your answer to John Komp’s question. So I’m going to ask it again. Could you give €“ if you look at the DTC business, and if you look at wholesale business historically, Q4 for HOKA has accelerated from Q3. So the question is, do you anticipate that Q4 HOKA revenue will be higher than Q3?

Steve Fasching: And I think John answered that question, right. So when you take the numbers in, given what we sold in as well as what we sold through our DTC, we’re not expecting that on €“ growth on Q3. Again, we’ve got dynamics that are underlying between quarters, right. And that’s why I want to be careful that people aren’t so focused on Q3, Q4, as I said, we’re managing this business for the year. It’s why we have not this year, given quarterly guidance. We know we’ve got dynamics within quarters this year, where we’re trying to get more products in early. And that, as I said before, has worked well for us, right. So we want to make sure we have you know the right perspective of how the business is trending. Now, when you then look at mix, right.

That’s going to play an impact on revenue reported. So when we’re looking at volumes, right volumes are a little bit different due to the channels that we’re selling in. Our guide equates to similar volume levels. But again, I want to be careful that people aren’t so focused on a Q3, Q4 dynamics. It’s the full year right and you know, we’re coming out of a quarter where we grew the brand 90%, there is demand out there. So, again, we’re going to get product in, we’re going to get it in there, we want to make sure it has an opportunity to sell through, and then we’ll see what happens. And then again, we have tremendous confidence in HOKA. And €“ but at the same time, we’re managing the marketplace. We know that there are a lot of competitors that have a lot of inventory within the wholesale channel, we don’t need to contribute to that confusion, we’ve got a brand that’s red hot that continues to perform well, this goes to our marketplace management.

So brand is in great shape. I don’t want people to get worked up about a Q3, Q4 dynamic. That’s not what we’re talking about.

Sam Poser: But I understand. And I’m not trying to get worked up as we’re trying to model this properly. The question, though, is, as you talked about, I think Dave, you spoke of one more after this, which is related to UGG, but with HOKA, you spoke about some new, you know, shoe you sounded pretty excited about that are launching in Q4. And now is this situation because of the scenario that Steve just mentioned that you would launch it in direct to consumer first, maybe in Q4 and then launch it to wholesale in Q1? I mean, so is that what you’re thinking about? I mean, as far as manage €“ you know, how you bring things to market? Where, you know, I mean, I’m just trying to understand it, because you’re bringing in brand new products and the demand real high than those retailers want your product then it really will probably take away from some other brand not necessarily from you and theoretically not make things worse.

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