Dave Powers: Yes, and the last thing I would say, if you think about this brand five years ago, it was a boot brand. And we’ve had that stigma attached to UGG brand for quite some time. And I think that those days are in the past. We have products that is resonating in different categories that we’ve never had before. And I’m really excited about the Lowmel, that it’s our version of a sneaker. And I think that’s going to be a best seller for years to come and start potentially taking share from some of the sneaker brands out there.
Jay Sole: Got it. All right. That’s fascinating. Thank you so much. Really appreciate it.
Dave Powers: Okay.
Operator: Thank you. And your next question comes from the line of Janine Stichter from BTIG. Please go ahead.
Janine Stichter: Hi, congrats on the results. And Dave, wish you all the best as well.
Dave Powers: Thank you so much.
Janine Stichter: I wanted to get to pricing a little bit. Yes. And UGG, could you elaborate on the price increase there? How big was it? When did you take it? And maybe how broad was it in terms of the styles? And then curious about any future opportunities for price increases. And I guess the same question for HOKA. I think you’ve talked about being pretty happy where the pricing is there. But do you see any opportunities just as some of your peers potentially look at taking that price? Thank you.
Dave Powers: Yes. Thanks, Janine, and great question. We are and we have been and will do continue to look at prices strategically. And so some of the decisions we made this year were really just on a handful of styles in UGG. But in really, some of our bestsellers who are proved to be our bestsellers. So that’s why you saw the exponential impact of revenue on some of those styles as they perform so well at full price in the added $5 or $10 made a big difference on a lot of units. Going forward, we’ll continue to evaluate it. We don’t see massive price increase in broad base this fall. We’re still evaluating that, but it’ll be selected by market and style if we do that. And then the same approach for HOKA, we’re comfortable with prices are right now we think we are providing incredible value for the dollar.
There’s opportunities to raise prices a little bit here and there as we continue to roll out more innovation. But pricing – growth through pricing is not a strategy of ours, it’s pricing the appropriate the product in the market for the consumer, and that’ll drive our decision.
Steve Fasching: Yes. And Janine, just to add a little bit on that, as Dave said, it was not across the Board. It was very surgical in terms of units that we identified had the potential to absorb a price increase without much consumer resistance to it. And that was significant. And so it was not a lot of styles, it was on styles that we knew would do well. And so it was surgical in the sense of, those high performing styles, and it drove a big portion. So just in terms of quantified a little bit, in the quarter, our gross margin from last year was at 580 basis points. I think the other thing that was a big contributor along with price increases, we didn’t get promotional. This was a full, strong, price, sell-through quarter for us.
So of that 580 basis points, about 340 of it came from not being promotional, and the price increases that we experienced in the quarter. So a big dry growth quarter [ph]. And as Dave said, we’re not looking to decrease in this to kind of continue to drive that. We’re going to be very careful about how we place price increases and how we contemplate it. But this year was one year that we benefited from it that we will not necessarily see in future periods.
Janine Stichter: Got it. That’s helpful color. And just in terms of the gross margin, it’s fair to assume that there might be some more promotions in the future as that kind of normalizes the pricing for you to stick. So at least a portion of the 580 basis points remains structural.
Dave Powers: Yes. Yes.
Steve Fasching: Yes.
Janine Stichter: Perfect. Thanks so much and best of luck.
Dave Powers: All right. Thank you.
Operator: Thank you. And your next question comes from the line of Sam Poser from Williams Trading. Please proceed.
Sam Poser: Well, thank you for taking my questions. So Erinn, we already have UGG and HOKA. So could you give me Teva, Sanuk and the other or my favorite question and then I have other questions because I wish you just give all of it.
Erinn Kohler: Sure, Sam. So real quick for the third quarter total wholesale and distributor for UGG as you mentioned, you can count is $403 million, HOKA $252 million, Teva $20 million, Sanuk $2 million and then other largely Koolaburra $24.5 million.
Sam Poser: Thank you. Okay. Based on what we’ve seen so far in January, it looks as if – well, first of all, Dave, congratulations. Totally awesome for it. We’re very – I’m very happy for you and I hope to get to see you before you sail out into the sunset off the beach of Belita.
Dave Powers: Thank you, Sam. I appreciate that.
Sam Poser: The – we’re seeing a lot of sales in your own retail stores around New York like the there – I’m hearing that like retailers are getting – your wholesale accounts are getting small hits. But are you gearing a lot of what’s going on in the fourth quarter for UGG to really more so than usual like just pushing it to your DTC given that a lot of those orders are – people are just trying to get whatever they can, so you’re going to feed yourself a lot more?
Dave Powers: I wouldn’t say that we’re forcing more inventory purposely away from wholesale into DTC. What I would say is I think the teams have gotten better at allocating the right amount of inventory for our stores, so that we’re not missing sales when the customer comes in. And we’ve been guilty of that in the last few years, not having protected some of the inventory in this kind of demand. Some of that inventory can get sucked up by DTC or wholesale fill-ins, so we’re protecting it better than we have for our stores and just making sure that we’re balancing out across wholesale and retail and e-commerce as best we can for the consumer and how they like to shop. Just so happens, though, when you have this kind of brand heat momentum, if there are wholesale partners that are running low on inventory, they’re going to go to our stores to find it and our websites to find it.
And this is an indication of what happened, but it’s also a strong indication of how well our pull model is working. And we have a pull model like that, it does help generally benefit your DTC business a little bit more.
Sam Poser: Thanks. And then lastly, you sort of hinted that was a new thing coming from Deckers X Labs. I heard that it might be the reentry – and I’ve heard from some retailers they’ve seen some of the product for fall. And I heard it might be under the Anuk Reborn.Could you give us some color as to what may be going on over there?
Dave Powers: Yes. Well, I will say, it’s exciting for us. We established this Deckers Lab innovation engine a few years ago with the help of Jean-Luc, who is one of the co-founders of HOKA. And that has been quietly building as a force for our pipeline for all of our brands. So some of the innovation you’re seeing in UGG and HOKA, and we’ll soon see some of that in Teva as well, has come from that. And one of the things we uncover is there’s an opportunity for a new kind of sneaker brand. So we would put this under the category of super sneaker brand. It’s pretty exciting. It’s more sophisticated in styling, it’s made for really all day wear, but it comes with a lot of the technologies that you would find in a performance running brand.
