Deckers Outdoor Corp. will open 25 new stores this year and expects to have at least 200 stores generated 25 percent of its revenue by 2015, CEO, President and Chairman Angel Martinez said at the ICR XChange investor conference last week. The company already operates 11 stores in China and 19 in the United States, including eight outlet stores.
DECK’s long-term sales targets now call for $2.4 billion in revenue by 2015, including $1.85, up $200 million from its previous target. Teva is projected to become a $250 million brand, up from $200 million and Sanuk, $200 million. Sanuk generated sales of $43 million in 2010. DECK acquired the company last year $120 million in cash plus earn outs.
DECK is currently focusing on how to developing a line of Sanuk products, for department stores without jeopardizing its authenticity as a surf and action sports lifestyle brand. “We are not going to make that mistake,” he said. “So there will be line extensions of the new product introductions and it will become a year-round brand.” DECK will also expand Sanuk into surf-oriented apparel and accessories.
Martinez said that after being in “a bit of a death spiral” six years ago, Teva is positioned for significant growth as a much younger, more action oriented, four-season brand.
DECK estimates cost of goods will increase 10 percent this year, but expects to mitigate some of that through price increases and product mix, including the introduction of Sanuk’s deconstructed product.
