Ugg and Hoka owner Deckers Outdoor names insider as chief executive as Dave Powers retires after strong quarter

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Deckers Outdoor Corp. said success of its Ugg boots and Hoka running shoes drove it to its strongest profit and revenue quarter in its history, as long-time Chief Executive Dave Powers announced his retirement during a time of strength for the retailer.

Deckers Outdoor also boosted its 2024 outlook after its third-quarter adjusted earnings of $15.11 a share soundly beat the FactSet consensus estimate of $11.49 a share.

Third-quarter revenue rose 16% to a revenue of $1.56 billion, well above the analyst estimate of $1.45 billion. Its Ugg brand booked a 15% sales jump to $1.07 billion, Hoka jumped 21.9% to $429.3 million, while Teva fell 16.2% to $25.6 million.

Deckers Outdoor’s stock
rose by 7.8% in premarket trading on Friday.

The company also named insider Stefano Caroti, who is currently chief commercial officer, its chief executive officer, effective Aug. 1. Caroti counts 32 years in the industry and has worked at Decker Outdoor for more than eight years, including interim president of Hoka.

“We have experienced explosive growth driven by incredible — and still increasing — brand heat across Ugg and Hoka,” said Powers, who joined the company 12 years ago.

Chairman Mike Devine said Powers “has fostered each of our brands so that they have become consumer favorites, capitalizing on market trends and dramatically increasing shareholder value throughout his tenure.”

Powers will remain on the company’s board until its 2025 annual meeting.

Digging into its third-quarter results and outlook, Deckers Outdoor said it now expects 2024 earnings of $26.25 a share to $26.50 a share, ahead of the analyst estimate of $26.21 a share.

Deckers Outdoor also projected 2024 revenue of $4.15 billion, compared to the analyst estimate of $4.17 billion.

Third-quarter net income rose to $389.92 million, or $15.11 a share, from $290.75 million, or $10.48 a share, in the year-ago quarter.

The company reported results after the closing bell on Thursday.

Prior to Friday’s stock moves, Deckers Outdoor’s stock has risen by 86.5% in the past year, compared to an 18.6% jump by the S&P 500

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