ýFollowing its acquisition of the Sanuk surf-inspired sandal business, Deckers Outdoor Corp. said it made the strategic decision to cease distribution of its Simple Shoes sneaker brand by the close of the year.


Angel Martinez, president, CEO and chairman of Deckers, said in a statement, “Simple Shoes was the first brand to prove it’s possible to make eco-conscious footwear, and were proud to have accomplished all that we have.  Given that there is some degree of overlap between Simple and Sanuk consumers, and Sanuk’s positive outlook and global appeal, we make this difficult decision knowing it is in the best interests of the brands, the company and its shareholders.”


Deckers did not indicate what it planned to do with the Simple brand.


As reported, Deckers on May 19 signed a definitive asset purchase agreement to acquire the Sanuk brand for $120 million plus earn-outs, or nearly 3X Sanuk’s 2010 sales of $43 million. Deckers Other Brands segment-including Simple as well as Ahnu and TSUBO-generated sales of $26.5 million in 2010.


At a Piper Jaffray investor conference in early June (SEW_1124), Martinez said the Sanuk acquisition now puts internal pressure on Simple to perform at a more accelerated rate. He added that Sanuks sandal-based construction methods made the acquisition particularly appealing.


Deckers acquired Simple Shoes in 1993 just two years after it was introduced by Eric Meyer as an outdoor shoe with athletic construction. In the 90s, Simple Shoes were the staple footwear for plaid flannel-wearing skaters across the suburban U.S. but sales began plummeting by the latter part of that decade due to heightened competition and a flood of similar products at retail.

 

Sales peaked at $28.9 million in 1997. The brand had been reinventing itself with a particular focus on sustainability.
Deckers other brands include Teva and UGG Australia.