Deckers Brands reported that Ugg’s 4.9 percent sales growth in the fiscal first quarter ended June 30 largely reflected success reaching male consumers. On an analyst call, Stefano Caroti, Deckers’ CEO and president, said the men’s business “accounted for the largest portion of incremental Ugg revenue.”
Popular styles with men include the Lowmel sneaker range, the Tasman slipper and the Otzo Clog designed for men.
Caroti also said Ugg’s increase in the quarter reflects progress in its “365” strategy aimed at extending from a winter-only boot brand into a year-round lifestyle brand. He said
“increased marketing and product investments are driving increased consumer adoption across fashion casual footwear, sneakers and sandals, supporting higher gross margins for the Ugg brand. Stand-out franchises seeing healthy momentum include the Lowmel and Golden sandals and clog range.
In apparel, Caroti said Ugg’s spring “fleece collection performed especially well across U.S., Europe and Asia.”
Overall, Ugg brand sales increased to $278.0 million compared to $265.1 million a year ago.
By channel, Ugg saw growth of 6 percent in DTC and 5 percent within wholesale. Caroti said, “Ugg delivered growth in both the U.S. and international regions. Growth was led by international markets with strength in Asia as the mono-brand retail presence has been especially effective at driving consumer adoption of versatile Ugg products across new categories.”
Caroti added that Ugg, as well as Hoka, “continued to capture a high level of full-price consumer demand,” with each seeing “healthy first quarter growth in terms of wholesale revenue sell-in, and full price unit sell-through in the U.S. market.”
Beyond product demand, Caroti said Ugg continues to benefit from marketing campaigns emphasizing “lifestyle storytelling” as well as activations that were held in the quarter in Atlanta, Los Angeles, Paris, London, Chengdu, and Seoul.
For fall, Ugg is launching a mule style and hidden wedge silhouettes in the Mel franchise and seeking to build on last year’s successful launch of the Dusty Orchid pink collection that spans across classics, sneakers and ballet-inspired models. Caroti said, “Our team’s efforts to continue strengthening the Ugg brand’s relevance across seasons and consumer occasions are reflected in our performance and the growing consumer demand for Ugg, which gives us the confidence in the market share opportunities ahead for the special brand.”
Image courtesy Ugg
