Lolë Brands has acquired outdoor and beach lifestyle footwear brand Sanuk, which previously operated a division of Deckers Brands. Terms of the deal were not disclosed.
Lolë said Sanuk was founded in 1997 within the surf, action sports, and outdoor community and has long been synonymous with comfort, creativity and free-spirited adventure. The company also noted that the partnership would usher in a new era for the Southern California-born brand, as Sanuk and Lolë are “committed to responsibly produced, innovative and stylish designs.”
“Under new ownership, Sanuk will benefit from a renewed investment to build on its core strengths, such as unique, consumer-centric products and marketing that differentiates the brand in the marketplace,” Lolë Brands said in a media release. “Sanuk’s loyal customer base of wholesale partners can look forward to experiencing the brand’s evolution, which includes a nimble and progressive approach to marketplace management and customer service.”
After serving over a decade with Sanuk and bringing 20 years of industry experience, Katie Pruitt was appointed VP and general manager of Sanuk. Lolë said she is the “ideal choice to lead the brand into the future.” Pruitt will focus on “evolving the brand strategy and prioritizing direct-to-consumer and wholesale customers to drive innovation and growth.”
“I’m honored to join the team at Lolë Brands, a talented group with whom I share a similar passion and vision for building brands,” said Pruitt. “Together, we see exciting opportunities to elevate Sanuk’s product offerings, disrupt the marketplace and build brand love with our growing community of Sanuk fans.”
Pruitt worked for Deckers Brands for nearly 13 years, the last four with Sanuk. She was, most recently, brand director for the Sanuk business. Before Deckers, Pruitt was a footwear developer at DC Shoes for a year after working as a junior developer at the pre-Deckers Sanuk brand. She has early experience at LaJolla Group, Madeleine Press and Kate Spade.
Sanuk will relocate its operations in the coming months and open a new office in Los Angeles, CA.
“Sanuk is iconic for its disruptive spirit and loyal fanbase, and we’re pleased to welcome the brand to the Lolë family,” said Todd Steele, CEO of Lolë Brands. “We look forward to working alongside Katie and leveraging Lolë’s resources and partnerships to embark on a new stage of growth for the brand.”
In October 2023, Deckers Brands announced that it intended to divest the Sanuk brand in “alignment with effective resource allocation and the execution of its long-term objectives.” Subsequent to the company’s fiscal first quarter ended June 30, 2024, the company reported it entered into an agreement pursuant to which the buyer agreed to purchase the Sanuk brand and certain related assets, which was expected to close this month, according the company’s first quarter 10-Q filing with the SEC.
Deckers Brands reported that Sanuk sales fell 28.7 percent for the three-month period ended June 30, to $6.9 million. Wholesale sales amounted to $4.4 million in the quarter, a 31.5 percent decline year-over-year, domestically driven and said to be primarily due to “lower consumer demand, partially related to macroeconomic factors, and elevated marketplace inventory levels.” Direct-to-consumer (DTC) sales declined 21.9 percent to $2.4 million for the quarter.
Assets for Sanuk brand wholesale were lists at approximately $17.0 million at June 30.
For the full fiscal year ended March 31, Deckers reported that Sanuk had sales of $25.5 million, a decline of 33.0 percent, or $12.5 million, from $38.0 million in the prior year. Wholesale sales amounted to $17.2 million for the year, a 37.9 percent decline year-over-year, and DTC sales declined 19.6 percent to approximately $8.3 million for the fiscal year.
Sanuk posted an operating loss of approximately $12.8 million in the last fiscal year, compared to operating profit of $2.8 million in the prior fiscal year, said to be due to lower wholesale “net sales at lower gross margins, as well as higher SG&A expenses as a percentage of net sales, primarily due to the Sanuk brand definite-lived intangible asset impairment.”
During the fourth fiscal quarter for the year ended March 31, 2024, DECK recorded an impairment loss of $8,164 in SG&A expenses in the consolidated statements of comprehensive income for the Sanuk brand definite-lived trademark, driven by lower-than-expected results of operations for the wholesale channel.
This acquisition marks the second for Lolë in the past year as it expands its portfolio of environmentally conscious consumer brands. The now LA-based activewear and outerwear brand acquired Époque Évolution, a sustainability-focused women’s apparel brand based in San Anselmo, CA, last year.
Images courtesy Sanuk/Katie Pruitt/LinkedIn
