DECK - Earnings call transcript Q4 2021 | Deckers Outdoor Corporation

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Operator

Good afternoon and thank you for standing by. Welcome to the Deckers Brands Fourth Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you queue up for questions. like recorded. everyone would call this I being is Instructions] to that remind conference [Operator turn call now and I’ll the Corporate Investor Kohler, Planning. Relations VP, over to Erinn

Erinn Kohler

for Hello, you, joining us and everyone, today. thank

Dave On Chief Fasching, Powers, the Officer. call President Chief and Financial Executive and Steve Officer; is

distribution to established risks historical of products, forward-looking strategies, are of behavior, strategies, to Reform Safe shares. allocation, on consumer are include made are changes potential mix, Private the considerable begin, we position, which on than statements of of securities uncertainties. and are statements, within statements for other company’s and marketing this our of margins, our demand and Safe like revenues, Please statements changes anticipated fact changes product Litigation expenses today the impact note laws, allocation All everyone statements performance, intended of to changes call These the Before policy. for remind gross that meaning federal would statements the in regarding I plans made and brand and Harbor Harbor the to subject call forward-looking strategies, capital business, our our to and our brands strength our on pandemic Act Securities and by our qualify of XXXX. repurchase COVID-XX certain liquidity statements the our from to segmentation this liability forward-looking product the

represent time statements based information the on on such Forward-looking are call available made. this management’s current statements and expectations made are at

rules uncertainties actual to any of report company results now the any has its Form Risk statements. required Exchange, Stock assumed law SEC including factors the known Factors on With the and listing the numerous annual or or implied materially and statements. of XX-Q. from company that, XX-K filings, New in and any uncertainties and involve expressly predicted, other of Forward-looking by differ update section that obligation or The some forward-looking risks on our to as I’ll Except may over the cause to York risks, in its these results Form disclaims Dave. explained by quarterly it reports forward-looking turn statements unknown intent

Dave Powers

afternoon, thank for Good and Erinn. you us today. Thanks, everyone, joining

into diving gratitude toll express I’d pandemic’s towards the in the business, Before the States. United the like my to ending for progress

have within other countries world However, around still impacted friends family South Many and struggling the that currently by members India, countries. dangerous employees Nepal of Asian surge with COVID-XX devastating are outbreaks. being are our and the

who behalf past Our out by Deckers, hearts safety everyone half, moving go to this pandemic of has and a and for everyone’s on health the and wish been forward. I affected year over

fiscal of FY revenue of the tenacity year We of to allowed Today, by share were deliver to chain management year for fulfill be exceptional XXXX us a brand global also supply leaders, to XXXX, the results. I pace full the resiliency with our in and expectations As accelerated our and by I am operations, teams, past a increasing record have in year unmistakable was seeking world, globally the challenging HOKA driven the fashion per $X.X physical able and environment, and aggressive actively consumers brands. results the continually the By impressed to products, UGG, results the to unique of these Deckers. UGG disciplined Many exceptional growth dedication grit employees performance creation excited year, we pressures that fiscal continuing experience retail finish that performance combination and adoption driven the brand long-term with the mind of reflect the remain the that results were challenges saw a marketplace overcame during to and $XX.XX. versus of exceed last appeal the innovative the items FY of management our strategic earnings capturing retail were and I and who XX% expanded prioritization our strong for brands. into environment demand exceptional opportunity XXXX but a demand to acquisition our consumer our around breaking beyond. by strength brand, marketplace by as its Deckers HOKA of teams am strategies for and of organization, as demonstrated we top and share this enabled on they continued best-in-class XX% disrupted as the of deliver consumer XXXX the and drove to who operational of benefits the macro to of billion significant increasing and feeling results. for through in year and brand’s more of awareness e-commerce over capabilities by transition

building globally, XX initiatives a XX growth, tailoring global levels reminder, strategies of unique investment, reset a approach activities while key retention on spend gaining focusing UGG diverse health offering, which returns include a consumers, the to brand includes top year-round conjunction year-old brand in distribution our focus consumer order and As and a in of space on drive specific each properly with to to through brand growing brands UGG the executing for the our digital year-old of optimal adoption these first closet profitability. maintaining these balance behind with lifestyle online internationally by sustainable HOKA product recent acquisition as to tier brand direct-to-consumer accelerating with

XXXX pandemic. investments year, will pre-pandemic invest expectations acceleration strategically needs of teams our the Deckers the primary circumstances Fiscal While revenue infrastructure, we as need accelerate of opportunities. be strategies resulting well will core as success behind with chain from an seed committed in earnings opportunities. sustainable logistics exceeded faster our additional than enable of brands bolster growth Brands, anticipated, for positive infrastructure that revenue long-term remaining our Fiscal we scale to as we supply prepare and from to step With growth. believe another opportunities that to long-term we uniquely to XXXX the certain critical emerging saw and as our talent this previously and certain now evolution scaling benefited Deckers also our was enabler

for XXXX million UGG to Over opportunities towards details the our XX% and consumer XXXX revenues, interest before, XX-year including $X portion our consumers company total captured to seeding these more forward to created drivers saw of seeking scaling the as brand to brand. momentum global meantime, across consumers much purchased will categories. brand and UGG provide as collaborations, business the believe building XX% details brand to digital Trends, HOKA has over over some lastly, increase online XXXX fiscal PR as as our the than multiple some billion. its UGG new XX-year revenue U.S. the we’re brand’s which strategically year new I marketing performance footwear. X.X heat revenue fashion share consumers last channel building expanded consumer from well The increased of major targeted which all levels, fiscal UGG XX% of accelerated will later markets significant provide performance Steve more products critical highlights, international fiscal U.S., XX% the long-term, plus offering the around managed DNA to the Google driving $X.XXX around as fashion e-commerce with that business, fashion aged at direct-to-consumer in increasing compelling brand that blocks. our in And in the to global the to products investments, network, global brand a distribution well the context the on an during call. Starting investing global increased XXXX of acquisition billion long and U.S. our versus in brand led XX% looking product In success represents products relevance in added brands revenue, to ever resulted brand’s expectations across a margin and with the beyond consumers activations, due year database appeal primarily UGG search of the two brand purchasing and We was actively year. elevated FY according in fiscal XXXX authentic as of the that

ready-to-wear evidence year kids, collaborations, Clear featured to recent year to outerwear styles boots, the adoption diversified of the by consumers assortment, as top hybrid as years both attributes, into as majority was people old of of as consumers, XX in from first introduction as slipper style’s sportswear home the growth fashionable particularly a the the styles the XX the Fluff round original the purchased purchased up styles to were greater we UGG. a old. a comfort styles popular apparel as many XX consumers, this Mini brand’s development the of success which increased New which Fluff drove men, the what having complementary acquired franchise raise made the UGG Classic the hybrid with that of of and demand fiscal the style with UGG driven helping of were featured UGG brand’s by number with women top and refer XX among the Ultra younger working years feeling Tasman collection, sneaker, pieces well profile, both Male and These expansion by franchise, XXXX and seeking relevancy the brand’s and Heritage fashion the Yeah, product as performance as slippers ever of As well the to of brand slipper-sandal similar drove

for continues year, of women due in whole containing family, this the from primary and consumers purchasing women’s last products. While the footwear total percentage kid’s UGG many U.S., products, and business. UGG kid’s increase towards in the shift mix shift In kid’s XXX% UGG XX% women’s increased to of the purchasers for brand men’s UGG and both containing of as products. orders men’s With experienced whole an gender is more compared as increase of the family. products, orders purchasing and Part a revenue brand’s both both DTC to remain and men’s to

times UGG X.X terms have attributable categories Improvements few region. sneakers in localized internationally by the introductory in driving style last encouraged was was top the international to were franchise within build category has as consumers U.S. Such larger regions in activations was year dollar standout Fluff of the our are five the years, than and diversification Classic to style younger meant brand. its over new over well. Mini second volume Asia-Pacific adoption heat been to in and season, a ranked new adoption While which the new the marketing been which UGG brand year, last volume, Clear largely the of Ultra attracting category past is we

tactics the both are a off, in UGG indicators FY marketing fiscal the from from traffic a UGG greater aged success we brand’s early U.K. paying and e-commerce the China efforts digital ahead in during attention as and give markets behind the growth UGG our in to year, to has benefited that These localized return in a driving targeted XX invest marketing further XXXX. rebound of us plan experienced will international Our lapping difficult XXXX. to during increase significant and task visitors where pandemic confidence record XX brand. to

growth, purchases year But on undeniably confidence However, volume reset satisfy in have down and XXXX access momentum XXXX, new managing over initiates. resonate working brand. local the importantly, to XXXX a your even XXXX brand consistent to with brand’s right the exhibit that heritage demand fiscal to brand fiscal every increasing in $XXX across products product increasing shortages, demand around opportunities testament growth revenues HOKA volume elevate scale last we HOKA and HOKA during inventory HOKA, brand attention initially missed of with global key the our region the a amplifying with progress of repeat benefited The the methodical the some from of global on with was The the we the revenue slipper and fiscal and more making and is wholesale the FY growth the lap continues world meaningful through towards increased fiscal lost in channel the points in is to captured and franchises, goal planned all brand way impressive. with styles message as lapping above younger in the maximizing in distribution consumers approach increasing bring revenue to with drive growing distribution by year pandemic. to and million. investments driving EMEA consumers Shifting consumers innovative revenue investments products can the growth XXXX to maintaining HOKA topline year its across uncertainty, China strategic In introducing and a of creation, of DTC, to that while accelerate growth brand fulfilling from demand of marketplace of new balanced filling goal the last the past the to hero to XX% year. doubled landscape. ecosystem in versus recovering

these HOKA speed of the successful in result As team’s more was innovative drove styles products, This consumer purchases built HOKA alternate is products. development driving in acquisition, for of the repeat as such X, XX Ora recovery running Kaha trail the and the the with Carbon the Mach Flip Speedgoat Slides. featuring and for outdoors Flops and and the for and hiking Challenger

otherwise helps brand. embracing not brand’s performance launch which lifestyle HOKA the has but meaningful relevance providing rather all its athletes, audience to also expose such build may This is includes gaining recent products the One brand, shift discover the to and great of towards its who product fashionable for attributes products. Free younger to for HOKA meant the with to brand addition In People, consumers. not performance their fashion created an products a HOKA consumers partnerships of partnership signal the of

growth believe HOKA and consumers more the In XXX% able replenishment with disrupted HOKA and products consistent posted has XX a based in product on spend combination team the who outpace with for including inclusive was time year. been wholesale discovered XX-year-old a a up is underrepresented brand’s From XX% gains digital experience by and access impressive emotionally HOKA building winning prioritize Through to seamless may groups discovering youth experience the marketing resonating to online platforms base. efforts, younger lower where working consumer commitment are regional international a content have fiscal consumers compared the revenue brand’s acquisition HOKA consumer standpoint, rate innovation, the brand targeting a domestic to by addition to create XXXX, community was outdoor marketing to The younger of able also last diverse of brands distribution, but online. and to HOKA of DTC connected to We well as consumers. increase on of in elsewhere. these the quality spending points. ecosystem both international domestic is

XX-XX continues FY ability both HOKA towards revenue growth, the distribution domestic greater positive the spoken the about XXXX, the HOKA we’ve around global the international revenue than move both wholesale distributors towards in and split, more mix direct-to-consumer earnings global channels. to brand We an but of As reflection of prior the see a to distributor’s calls, continue this evolve we brand distributors is of as total use of unit In as of largest as strategically drove favored international the scale to internationally. for because growth the our as to world. well of opportunity proportion

product partners, pace we consumers a category with and Looking by ahead rapid with existing building in and anticipate with to and brand driven return sponsorship, frequency key gaining maintain at in-person market focusing awareness, as Germany increasing share Europe will product wholesale to the new event such brand of XXXX, building fiscal markets continue U.K., on acquiring consumers by presence the growth drops of retaining HOKA consumers. a through excitement innovation, global

and This In team includes China addition, presence HOKA a region. the meaningful the that to invest longer in building brand market for HOKA we presence we creating brand. in are the retail earmarking local term, as to to to build the investment a a

despite the universal as growth invested strong penetration the of million, acquisition towards and made the versus which incremental future Deckers partnerships franchise, wholesale last goals. revenue year, year-over-year, strategic strides the brand Teva Turning relatively increased total behind strengthened to brand points, nearly to enhancement DTC Teva, $XXX the productive profitability flat XX towards further percentage doubled contributed bottomline with made accounts, of direct-to-consumer by to sustainability experienced

Looking with the consumer on closed-toe share ahead, proportion consumers. for a leader in high modern year-round focused market and innovative space Ember is building being DTC sustainability, building acquisition Teva outdoor franchise, taking to XX-year-old in brand’s XX-year-old on maintaining product consumer, of the the a

million. increased X% the to to as this at inventory of to year Koolaburra, year purchases chose portfolio. conservative profitability, global ordering the $XX pandemic, XXXX last topline versus experienced the levels influenced reduce was onset scarce by fiscal on in revenue areas in Moving Performance availability product of and revenue demand, strategic of brand the channel. despite consumer Koolaburra high Based growth disruptions in value record both family and we wholesale

partners through prior compared XXXX acquisition Koolaburra expect doubled with year experienced in brand the the door share market the to more through existing continue count build to expansion, ahead, year, consumer fiscal For than wholesale on direct-to-consumer we as the building the further momentum Sanuk categories growth to non-boot lifestyle women’s which and million. year finally, experienced diversified XXXX assortment adjacencies. new license men’s through fiscal product appeal opportunities And the declined brand’s and in product this revenue the of with growth outsized expand $XX

safety as a we stores, to online conversion be including the mobile traffic due international of shopping a pandemic. decline, purchase to as and store, provide to helped from as POS XXXX people compared wholesale which of an Sanuk UGG, year, international last and exclusive process, focusing HOKA, buy implemented conversion. unique and stores. employees believe experience fiscal last on and brand and saw direct-to-consumer. and bottom respect each point. innovation difficult We brand’s domestic XX% optimized the line. wholesale year a growth to progress consumer huge omnichannel fiscal access this leaders the XXXX. year. marketplace positive through wholesale company driver in in comfort, Sanuk. marketplace, a XX% experience, believe which with experienced primary reset for strategy, was A in year. retail distribution, as to total XXXX, international at both Sanuk from than positive Global our resulted offsets owned contributor more growth portfolio in capabilities, helping to our global the mix offset improved by more to Wholesale pressures. We of up can made product UGG DTC systems in online, sustainability pickup, consumer the prior its consumer driven seamless performance domestic With strength were was to a the to DTC the consumer that purchase to the a acquisition circumstances. last increased our curbside over in see macro store of and e-commerce attributed the in well wholesale loyal combination global reduction over our improve rated Through through we made experience opportunity to reductions by that Over X% and right-size channel the XX%, the team higher great year, for build performance an across with base a has fiscal experienced revenue forward. With increase to to tailoring channel the helping to regions. path the on was you continue segmentation and wholesale strength and by the to moving of strength pandemic XXXX, macro global drive as traffic XX% growth was in thank drove international channel in DTC in pickup last Despite from intent XX% revenue expansion our priority direct-to-consumer offset top consumers year, return amidst decline a this brand fiscal Teva from in partially was initiatives pressures Global increase This increased a which UGG who in Every

a Steve, consumers’ take to positive recent highlight on is the believe the brands. I for we Before moment a impact sustainability off brand’s which hand of to front, activities our wanted passion having on some to call our I

Deckers, at we good we well to Here to in doing space. doing this believe continue intend is core and leading

playgrounds neutral past regenerative consumers Day sandals ever which limited collaboration will its the materials new plant TevaForever farming. to introduced Teva edition Foundation carbon old are reborn first that UGG to to the now into Over or clean proceeds materials. plant its UGG encourages which using a water held protect introduced brand’s Surfrider be is time running launched announced mission such of to hours. employees we volunteer Surfrider’s initiative Sanuk second to week-long helping as Earth recycle employee volunteer which around few highlighted tracks. beaches. program commitments friendly benefiting where helped make X,XXX to the with towards months, huge power features based second able and collection, We across that global commitment environmentally things over event, participated a last a the causers employees others. the thank of And maintain from our to healthy included giving impact our participation This double Art globe event, you who positive event Kindness year’s all and able were Kindness world. the with Art

brands XXXX doing the I’ll details look outlook our committed With fiscal to Steve sustainability year in forward we our hand initial and provide and company well giving results, the are way, on next service financial to and business the in over and and Our Steve? to XXXX. progress fiscal right back further on our over beyond. that, as call to as pushing further

Steve Fasching

everyone. Thanks, Dave, afternoon, good and

long-term we number our brands Dave saw brands and by just an digitally for a investing been brands. enabled have over year the new key for the portfolio behind year in The into as performance accelerated reaching to the a with we’ve demand further that that covered, organization, As helped milestones led demand XXXX outstanding Deckers have are of was of organization Deckers our transform of grow. opportunity year was strategies last fiscal a

maintain of primary but year realign the that later circumstances beyond year, provide planned Revenue helped classic was by growth fiscal More get growth drive final closures pre-pandemic solid first While quarter benefiting and able brands. to provided overcome and ability acknowledge on shipments, results. the was for has accelerating investments than as With growth these growth our investments, brand, well, experiencing to the boots, the with in a UGG a fourth expectations, hand, in able the spring this to have growth for keep drivers organization the past retail million, marketplace pace of the our well quarter In particular, last acknowledge store being total to needs prior our HOKA. strength UGG the boots let’s brand supply company us detail XXXX organization. specifically, ahead was the wholesale prior more there spotlight and perform weeks winter we full versus of to UGG also accelerated our up disruption from with in we driven with foundation pandemic. fourth has strategy that other to topline the in well been of fluff evolving to lapping wholesale is infrastructure year been year’s to I’ll on of put work call, and $XXX our was unique products, faster as the which on chain two March. to HOKA challenges XX% has trajectory disrupted while our a

versus SG&A higher brand as driven helped we as consumer exchange related versus spend freight see increase strong brands. offset HOKA with cost. quarterly and of momentum transportation quarter spend products million well performance-related improved revenue items. These year price diverse continue rates, primarily sales. as XX.X% or $XXX consumers full the sales to incredible XX% offering of currency of increased year’s quarter and proportion another results XXX-basis-point to selling, deliver for margin XX.X%, variable portfolio marketing, continued compelling by driven compensation performance by across Gross exceptional favorable other we $XXX a exceptional seeking to brand Continued and the our business was million, adoption. XX% $XXX additional in as million for demonstrate DTC to the was prior increasing increased last of or of out revenue, and improvement, the the was foreign see The a partially our by record quarter

increase billion million. overcame versus the at an With was year. DTC retail prior the the increased again strength came distribution over the brands, and channel to in e-commerce foreign from as with with fiscal increasing infrastructure increased UGG, employees, SG&A see our compared place of $XXX prior and for our increased driven of XX% XX% year warehouse higher to million, primarily that channel to in XX% points up favorable representing to rates of Across over of expense the online entire by for brand dollar our the as offsets the year $XXX logistics support retail the revenue spend all across in $X.XXX with travel our the UGG to year as of was due Performance channels of lower last full well including XXXX XXX to a savings lower year the prior and Gross reduction year spend gross to over billion, margin business, basis closeouts, regions global promotional mix favorable increased XX%. rate the and quarter, in international was points favorable million from to HOKA fourth was increased the from were $XXX $X.XXX the growth, of related to XX year from prior offsets the was that basis UGG of Higher last HOKA on year growth to declines. strength the HOKA and with and spend as increased from total points and of for XX% up on growth strength increase over which pandemic. international XX% pandemic. begin the a to store protect from exchange resulted brands our the measures momentum expense. driven marketing channel capitalize as marketing mix, coming our company safety percentage basis currency by compensation, growth portfolio primary declines related to year U.S. freight brands, the XX offsetting of activity, in The margins last cost in driver localized related as year’s

well For proportion a the tax as more price higher to certain slightly in a as offset higher as share SG&A Taxes record revenue, The in which brands, of compared greater revenue, year favorable HOKA brands, year for growth as across a was the compares higher in resulted result driven our increase recognized $X year and of to which rate. expense XX% revenue in than XX.X%, a XXXX. earnings as a exceeded last year. exchange rate was portfolio $X.XX this higher fiscal a of by the which growth, percentage This year, rates, by diluted full items to of per QX. of mix foreign were of was year, discrete last $XX.XX compares all DTC currency our leverage UGG growth sales domestic revenue the tax

to balance repayment fiscal March sheet. corporate billion XXXX, $XXX Turning down the XX% we year million due had same and no was ended XXXX At year time mortgage headquarter equivalents. of with and from we $XXX $X.XXX at in the last our our to borrowings. outstanding Inventory million, cash full XX, of

invested For above XX%. the results returned year, capital these

of repurchase to During we $XX we pandemic. in that I based had of focus approximately balance majority would at activity, Typically, our to to global on provide for of the average year, $XXX.XX. note fourth quarter, the we at as price paused the repurchased million point share this an update shares shifted would our the we backlog. of preserving sheet an uncertainty the year, the strength worth related

of continued less the distribution emphasis to Over as indicator have future portfolio will an we backlog. and the should of to and longer our providing performance. no strategies, such on backlog less that be last evolution as be of placed few we brands Due years, signal

the evolution some and full year XXXX, Dave already thoughtfully of power. XXXX just Beside the and in which our Moving to on, of earnings circumstances, bolster benefited was I of our brands. to from fiscal sustained have as touched fiscal year XXXX the planned directly was Deckers, foundation outlook, strong fiscal long-term a of table for set and for unique place revenue

price organization conversion, range, growing spending marketing For to awareness HOKA content to variable the added analytical the Strategic mid-to-high-teens to growth added to revenue investment distribution personalization billion fuel year year-over-year key a leading consumers, with increase we of tools an chain Teva across added lower range; digital and be last to region, driven to to year. XX investment and additional with seed tools in related $X.XX in center growing to air we the $XXX digit XX.X% approximately channel fuel capabilities. basis XXXX, and on Sanuk for HOKA growing with approximately capacity FY in domestic ocean points opportunity spending milestone; wholesale range to full range mid-single planning to items, international and is we our unfavorable headwinds low long-term cost wholesale to in Deckers mix drive our in marketing an logistics pressures. inflationary in be investment and the than and China transformation fiscal to infrastructure range; and the internationally billion lower in and include approximately investments supply in returns in scale filling enable double-digit to the topline expected our in brand capabilities insights due as as $X ready-to-wear the through flat the near-term is HOKA usage, expect growing larger appear. U.S., opportunities XX% revenue, by growth; Koolaburra includes toward for digits drive investments to data increased low high and to opportunities with reaching returning rate of single strength new the Gross in expected made improved and margin emerging the efficiencies, HOKA shifting investment spend. evolution to million to acquire Variable SG&A UGG mix double-digit and to bolster reignite and XXXX, talent which targeted optimize e-commerce heat drive drive UGG of to growth UGG the larger product potential opportunities investments, facilities to distributor to is further build containers growth to digital XX.X%, UGG and shipping of digital creation growth near-term the drive of DTC increase and

XX%, represents to peers. a Our remain XX margin These as into which had preserve intend margin XX HOKA FY include range are XX% that we XX.X% targeted be mix of expected of brand margin through expense and increases operating rate to and achieved that XXXX gross our of commitment recent expansion to FY in FY our to XXXX. achieved experienced in tier of of when approximately as our demonstrates portion FY aligns an in step with of top This full among channel where FY FY with guidance operating that XXXX of represents years, expansion flowing XXXX. we compared operating to we basis selling price mix pre-pandemic meaningful points larger margin for This DTC similar and a XXXX proportion points of in basis margin expecting consistently an the to business, XXXX. mix we our

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XXXX fiscal does any contemplate additional guidance nature for share one-time impact not be in may and excludes that repurchase. considered any Our charges

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tier with first half revenue thorough with revenue we Deckers the in of at the regions. the space to our cash capital savings Increased at will in and leadership allocation, Board of strategy. prior I’d for events right our brand shareholder circumstances value, logistics investment expenditure the their increased one managing To higher am up, building I’ll our strength XX% marketing its goal channel last international the Higher HOKA Continued plan as evolution long-term top of well his hiring a in experienced and the to spend behind the due continued last Directors consumers through fastest lap will build of and in margins. profitability on of business keep positive company’s the build and balance our as business authorization as with migrate we larger invest year record content growing maintain freeze. for consumers deliver the communities with of as and contributions the with the on world in some than thank expansion the safety the on seek Board’s footwear key of levels conjunction has acquires cost liquidity. workforce working costs of portfolio on drive to Overall, direct-to-consumer support increase brands position anticipate final multiple top management’s brands competitive are China. repurchase we based remarks. finally, people the for measures consumers growing we in our and to close, for year as to investments DTC, new percentage authorization. online Dave drag through employees domestically localized hand increased an step brand of approved higher back less as as merit to as ESG our including $XXX spend our achieve Higher portfolio, everyone confidence achieving dedication in And years and in supporting place. value and and global an capital to continuing our costs of strategic mix increases million evolving while HOKA, Elevated represent world of we as well on with do in Thanks, up results to mind our excited tough of HOKA in a awareness UGG way people increased Deckers a the to cost capitalize of review home, in of I as for unprecedented opening in year. versus shareholder years. our replenishment. a full to completed and marketing ability making online call now to share and maintaining to be a for presence peers, a scale warehouse strong highlights year, to like initiatives the by ahead on our both from the And awareness more begin increased over to drive gross distribution freight our goal This large. brands. reaching internationally Based

Dave Powers

able Thanks, for unique as as Steve. brand awareness UGG Fiscal capitalize globally XXXX HOKA expand build on was tailwinds as was to an brand. well exceptional the company year for the and our the Deckers,

also year has our products our company strengthening excitement channels. the our setup respective Our provide our consumer of which through strong of online, long-term of delivering to consumers ahead. accelerate for We brands strategies milestone product and the our $X.X of market taking profit share for maintain operating consumers. believe to acquire enabled record acquisition we’re digital helped our capabilities to approach With wholesale, brands brands, momentum in The achieve their a target our going strong while the direct each billion. compelling offering health to for a an brands a in aggressive of

period. peers organization. among added two-year making growth brands the expected mid includes to high-teen important million of while revenue remain double guidance Deckers to of revenue evolution investment grow implying long-term multiple for Our over tier $XXX top over digits, with the will

energy be our for to year are already being past the focused great. your more in we work that, $X objectives long-term over direct-to-consumer for all of leading markets. revenue mix existing drive you Operator the make brands, greatly added HOKA as appreciate in talent our from fostering to the channels, Operator? confident Q&A. on of continued over fiscal put the the capabilities. the as business just Thank this I I’ll billion brand forth support. talent to enable beyond to portfolio are international We vision call To our With of business and stakeholders build within new with the organization organization, acquiring of all our recognize employees am XXXX achieve to proud strong for opportunities well and and our these as turn new and our increase through

Operator

with ahead. Thank question Instructions] from go Lyon Please BTIG. first you. Our [Operator Camilo comes

Camilo Lyon

and congrats year. Good to afternoon, on finish everyone, a the strong you. Thank

Dave Powers

Hi, Camilo.

Camilo Lyon

chase any thinking you that longer to you’ll I suffered about year. up, just wholesale hold -- an made inventory have on season, at past the of curious Clearly, spoken regarding that of little of I bit think, the wanted given with in the follow how earlier shipments partners inventory you’ve your about? I hi. of anticipation some probably yours there’s through a comment this avoid end that build you some some given Steve, wanted many inventory there are disruptions to having to the of anticipation the remarks including supply am that chain to a I of on opportunities sooner.

Steve Fasching

Yeah.

back step Let of a take to going What me we’re on. -- I’ll thanks, Camilo. Good explain what’s to question. kind seeing just and

the of low, season. get and and in channel. inventories as to more it own I customers, XX% shelves mentioned selling want and our wholesale inventory kind in quarters lower you they inventories stock that the first have lower to prime the so do out to bring of couple on our down during we it inventory We with think want in again do in

chase see. the the It limit, kind normally what opportunities. may So we is first half. say, why of would shift a from seeing robust That’s I we’re more that

context, we in. inventory of to going we about first first wholesale kind I think orders half to the that portion because we’re was that’s as half that to a in of why bring significant as it expect see those growth really important fulfill talk

it accounts in were we out our getting they have sooner, So wholesale depleted and stock. that our to we’re inventory replenishing so

will we see, challenges So with. the dealing that we’re again, it’s one of

in reason another there get that know, significant this in the we you to As try supply disruption. some chain is earlier, of so to whole inventory avoid can disruption that channel,

Dave Powers

Yeah. year. add than to this on to that, just submit did orders earlier usual And we

right we is little the our a the now product country bit as key but But into overcome poses accounts of logistics domestically can is ahead the challenge. game far getting demand inventory the meaningful onto a through for production think pretty it. are still as So goes, and We very we strong.

but all accounts reserves looking stocks and of for going, holiday to as our our start So momentum heading keep are for well building also the and into timeframe inventory the brands. fall

Camilo Lyon

longer Steve, front Got within four quick leverage that talked UGG in EBIT terms perspective, follow-ups, in it. embedding in you just of that right you of to margin you’ve start you. you pressures from and now? centers, to is gross Two And price opportunities context, investments the the long-term digital two, like about that further How the context have that about term a to the as infrastructure, in opportunities distribution making year investments think and just HOKA? from years term are in you’re business or of and there you be any making you in mentioned, Steve, looks investments longer growth taking what investments the inflationary three and these do this some impacting that then margin,

Dave Powers

I can Yeah. start.

so Board, of But not this opportunities price year. across at styles increases, not and on going selective increases more looking we’re price example generally is into where we that. this an in passing selectively categories, Fluff based by just speaking, can, the broad we’re back of but So,

way and we more established. flexibility the have prices DTC the inventories there, accounts expecting channels things this our the last healthy think spend investment the of growth rate have already on in that. are But again do with full an maybe season’s expecting here on sold the but high and sell-throughs are in that price that I healthy and from margins way and yeah, we’re we’ve pulled And back to its we confident perspective, in we and wholesale year.

our it’s We make. ever our We stronger need certainly brands have been. brands, the demand than some think that to investments for we is

to both not to and matter consumers. really the see we for healthy They’re infrastructure in our then emotional allow even further. in need we that, invest meaningful growth, on product to and to a level brands but Our only it path build but but also sustain

the growth to So, XX% we to at right topline, about range be we to continue is fuel able have but to also that. think the spend to XX% double-digit

upside a right flowing business see balance years we and can to in that a year and feel goes. think through little range. that like XX% we to is how the Over brand building may XX% the sustainable this But now the there healthy the from about we’ll right be

Steve Fasching

on add to Camilo, just investment. a more to just think I And that, Yeah. than one-year It’s

Dave Powers

Yeah.

Steve Fasching

So, as we’ll well a it that out investments. we think be in as a we we we’ll some able can investments Dave better what how to of how said, and think, from both see now, targeted to yeah, that appropriate to we make kind we’ve position can as these place to benefit let’s a Dave as they go that these be is down in look need are kind revenue of earnings then as And of perspective. of sustainable at range But, could said, the the see things investment, I then figuring what these and road there balances from growth, are kind leverage. investments in some once drive

Dave Powers

about been OpEx lot variable. years, of we’ve higher few percentage talking as And our a is much a last -- Yeah.

invest year lot topline either growth. the have faster in we So flexibility to drive flow more to a through or

said, feel into and confident we opportunity we pretty increase be for I as levels, So that get as are couple years. next sustainable might of these the there

Camilo Lyon

on Congrats color. momentum. the Excellent

Dave Powers

Camilo. Thanks,

Operator

Please Our from Komp go Jonathan with comes ahead. next question Baird.

Jonathan Komp

Yeah. just think, growth. I first a follow-up, double-digit just Hi. Maybe you Dave mentioned Thank you. topline

So than if maybe expect any from efficiencies maybe some of I to beyond benefits of And I you some follow-up growth break out the to see and think, Steve, investments, next of the ability the year? infrastructure think your relatedly, you rate sustainable thoughts pieces? year, this the some investments context the and the on mentioned, to maybe wanted just any that’s thoughts from some analytics

Dave Powers

Yeah.

So business component and bit a particularly I’ll first for a answer Jonathan. filling higher rate your little question, because wholesale UGG We the accounts. certainly, of this see than Yeah. is year growth inventories of the normalized of that refilling our the path,

the So confident guided is XX% highest of But a we’re portion we’re is we’ve that filling. that mindful and it. in ever

double clear grow So continue the we see to growth you’ll start low next year to investments the to we’re hold see return in like to making. in two. to over closer But the line starting that brands to rates sight of this our normalize be and to digits international, probably feel have we that or we’re at point, really especially growth with HOKA globally, the taking a able

Steve Fasching

the of of leverage on just a that about Jon, kind then, from And stack. talked Yeah. the kind we two-year

that is in So, clearly, some what we’re XXXX. passing seen benefit through we’ve

revenue necessarily spend against that didn’t revenue XXXX. kind FY and in mentioned, acceleration of Dave an as benefited by So acceleration we of

remarks, those So a in the years that In that will that some progressed reference XXXX, as talked of we’re it sets and in that from efficiencies. where ago, growth. XXXX two-year through there in about for catch-up high-teen bit some achieved we were, of how of say be really prepared against really where to passing two my believe in leverage stack seen a growth more taking revenue we’ve of spend I we’ve we XXXX foundation we

were, kind to of where talent price there selling, start settle years spend to some the proportion some a SG&A revenue full from that, of going it, we ago down that’s it’s range. is So say be we two roughly XX.X% on where to and XX%, of in call from so

off We continuing XXXX. things to seeing. spend let’s where go, that earlier constrained a setting that investments we back for question up also, is get this some the see think again, heels revenue We important to year we’re this growth growth. we’re that coming So, making that are us it’s the those how strong in of of

Jonathan Komp

the to commentary few in any either looks some coming or and up the months, faring is then And new more HOKA, on lot domestic a pipeline drops? like of the newer new more any wholesale globally? distribution approach next of products so one just on on how comments And product Great. that just Yeah. it

Dave Powers

off DICK’s, a strong. know, would applied controlling full-priced and doors sell-through outdoor, teams the and say, focused case not you to That creating The methodical, be that to accounts, in demand been in and hike and going et too we’ve going have the philosophy and speaking, focus still you’re is we’re cetera. as paying across so new many as globally see And distribution, I to fast little into more on generally healthy opportunities. we’re great working. and Yeah. expanding continues very areas Board such is existing job obviously of done and start that’s product on sell-through trail of very lifestyle is to too marketing bolstering a strategic and

Board going different then still is get from is consumer. product, very And little continue we perspective the lifestyle bit market the intent my So and but category first push but which a globally, adapted to strong. to as across growth performance a drive for the and that’s we’re that pipeline how there, we to each

have year. great coming We this launches up some

We have Clifton which quarter, of a X we launching demand. in have the lot next

on it our pre-selling there. and already the demand We’re website is

the we feel great So about pipeline.

So chain over months next to of XX the supply categories the can to the expanding course months. then XX product get into and other we

excited about We’re very it.

Jonathan Komp

Thank Excellent. you.

Dave Powers

June. in X Clifton Sorry,

Jonathan Komp

Yeah. That’s right.

Thank Okay. you.

Dave Powers

Yeah.

Operator

Please Our comes next question ahead. go Sole with UBS. from Jay

Jay Sole

if much. thank brand HOKA on it maturity and was a bigger brand. you I in could take of last could the a you just Great a wondering, back bit, to step as you so if see much us, you curve answer maybe and just tell the elaborate grows Dave, little this where

guidance, As going it the start? Thank that where maybe you to be and would opportunities the you and a take now, us geographically to from right great you through the biggest maybe you. by the where where year place baked see hope what’s is you there, where see and see end then brand in

Dave Powers

Sure.

think obviously, the can get in So, this million very year, opportunities. that said we continued as HOKA we script, aggressive that’s to $XXX growth

fact kicking year ground UGG UGG, we’re on for heads that after from but the in a is China. HOKA, great globally business really it’s there really we to about the the balance growth that a perspective, get see building infrastructure still team It’s about in small relatively that invest talked been to that. It’s market and the is full-time time in leveraging area to one the into. in investing distribution. the is talked starting very and China start We’ve China. also to get across HOKA which to balance of business on putting units us the the this The a for We DTC, team exciting for in international dedicated

into really people assortment, So styles become we $XXX categories, we control momentum expected and obviously, younger million resonating billion, are to say ecosystem, the right, consumers, seems be of focusing this in that this We the earlier $X more and distribution, to aware of than on running. building, I us globally expanding some is ways core the gives on we’re we’re there for year, brand. the in we bring repeat path purchases brand multiple just innings early particularly as new and into more consumers the confidence the formula think still product that I’d just beyond the multiple think a the in lot markets in fact our

Steve Fasching

Jay, had wholesale the the seeing think, what to that, we and on add question to just we’re I And on distribution.

we’re distribution. tremendous progress within our Dave said, as So wholesale seeing

Jay Sole

Yeah.

Steve Fasching

also is of Dave an said, what we’re seeing acceleration As units.

internationals see proportion revenue, the Now of through necessarily our is distributors. that much same don’t you on in because

One, clearly channel. customers direct of through million channels, our So our as sites, lot when in than previously faster as bring we’re more Dave direct-to-consumer opportunity. adoption we a and thought through $X we $XXX we said, higher seeing about approaching billion think HOKA,

international the front, acceleration will about that of greater drive channel And making kind we growth the on can that we’re opportunity have the we then down international On a investments of the front. road. think

sitting clearly, it go, about we’re where in place. of and can great So, excited very very the HOKA and the potential

Jay Sole

so much. Got super helpful. it. That’s Thanks

Dave Powers

Jay. Thanks,

Operator

Poser go Please next ahead. question with Sam Our Trading. Williams comes from

Sam Poser

on my same, more front-end we SG&A for to follow the the to your it Good that taking in I the we investment questions. the out going about there? spread I flow XX%, should going guess, see of loaded year afternoon. it is the mean, of Thanks business will or, is think or

Steve Fasching

out. be It’s to going spread

right? little So bit it will to Some of needs to the it ramp, you see disproportion a in revenue growth.

the So we’re revenue upfront growth channels. more see going as wholesale we’re to filling in

We’re going year. to throughout investments be the really ramping

really So, ramping growth year. front on over investments the of of more half revenue the

Sam Poser

Yeah.

I higher or Okay. be actually revenue And less do QX biggest more, you going going expect absolute in growth? UGG in got the then, to dollars. or mean QX the QX or wholesale to absolute from QX to is or be still I’ve -- one, be just two in

Dave Powers

In supply to of now, because based quarter because the we it’s one hard hard can reasons on out challenges and ways to going the product is arrive Sam, and right so to that that it’s challenging, quarterly the it some end. when say get that’s chain of is guidance call exactly when

first we of call. we’re and into in QX dealing with but half on to product more to little a one increase versus to past, the that make in in of than that. things QX arrive relates confidence ball that’s exactly early Certainly, is that how kind bigger have see an you’re So when can the calling the sales, going putting the still

Steve Fasching

Sam, comparison quarters you think the strong when is the XXXX, to XXXX a I be half. comparing look back had And Yeah. that other going such QX strong in We’re QX, to right? some very we at against challenge, the

So percentage fill think year. front this in it’s when wholesale we’re those really loaded growth, you half to that trying earlier as channel about especially terms,

Sam Poser

Got being the SG&A towards percent marketing the And of digital what increased you. marketing? of is put

Dave Powers

the it’s in significant, on the to invest UGG. I for get spend for to continuing then have mean, also, I’d and exact and mean, board number incremental marketing I we’re in key that. Yeah. across marketing categories HOKA but

is the a up as going So across marketing percentage of board. sales,

in number can about So know we’re I we the exact have into it. of that. if maybe don’t that’s thinking get later. We how But Q&A

the example fact part and increasing big in is resources UGG spend and and building. men’s infrastructure the kid’s, and rest relying as and apparel new the such of really a ground and areas is that in broadly marketing So but China for we on the headcount are on growth on

Sam Poser

talked are you anybody, Thanks. it. about and with And said one HOKA -- hire you last it, buy might you building then thing, you’ve might M&A you out apparel at looking

not am answer, you’re I’ll give know going to I did, to I not you get -- ask an but going anyway. So

line collab well as shoe itself… apparel a both with as very did you -- Cotopaxi, did, outdoor line So the with apparel interesting, the

Dave Powers

It’s… Yeah.

Sam Poser

cetera… …et

Dave Powers

No. Yeah.

good Just practice. business

always We’re but having selective. very we’re open -- and and conversations

to so right late stages, focused intently business. core we DTC brand, And the grow stages. omnichannel of talent really top now today. management’s actually hard our of so to biggest just We apparel, the different of environment, talking we’re that focused happening over and channel, contemplate last time we now on more us just chain focus building have of have allow believe opportunity has it significant The we’re a business capabilities, -- we for front five the from challenge that we’re our served that necessarily don’t top in continue acquisition being that and knowing But can going to With we’re on resource have our just is in organic four we perspective. that we -- in an to to said, much than doing on ever -- us and because and on job years something relates Right the us now companies, think to that that do need the my down early strong or as brands organic part supply approach. out what’s well we years internal then of and is It’s the of strength us. our growth capabilities.

Sam Poser

much. very Thanks Continue the success.

Dave Powers

Sam. Thanks

Operator

ahead. Our Please next Jim question Duffy comes from go with Stifel.

Jim Duffy

everyone. Hello, Thanks.

Dave Powers

Hi, Jim.

Steve Fasching

Jim. Hi,

Jim Duffy

are I encouraging. of UGG very the increasing purchase you to Hope doing business, guys the start on frequency wanted well.

As you’re thinking…

Dave Powers

Yeah.

Jim Duffy

to but provide any in, can it for by drivers? of year, still you dimension recognize Are outsized a the growth it that is … have this there domestic categories? categories discussing across about product component I growth some

Dave Powers

Yeah.

you have that and been while mentioned I And and one, the two done brand, think of finding being embrace brand really an which more something a think job to the working on that the both relevant communication younger as exceptional for often. we’ve is has one and product perspective. is consumers from it purchasing is I are things, a consumer thing exciting, for we that they’re that the begun

Our for product as the multiple relevant purposes range, used seeing the the in to quarter same XX-month cycle year in be becomes more UGG round. now of XX-month repurchase to we’re

to that. us. category the going on indoor/outdoor slipper Obviously, So important slipper be franchise, build continue Fluff to to for we’re the is to going hybrid, continue

category see very or is it’s meaningful. big us or for in as as total slipper not other you but Although, a sneakers boots areas, as

we So this Classics we’re early across us Classic out sold is year going Board, to that. coming the excitement continue against and growth. on that the Ultra days Mini the The again is launched that and in that Clear for of to orders style build fall. the last big is there

UGG And exciting and really and the evolutions use get the proposition into heritage Neumel. and evolving different the occasions then and like of brand. women for men compelling materials in both we’re things the We different product you and into that have rain how a Tasman

increased exciting inclusive and XXXX is categories from and came What So kid’s. FY UGG of it’s growth growth combination of the multiple non-core apparel. was in then product a about in men’s

high seen for by the from broad-based lot it and perspective. us So this is very of make used adoption having gender across rates balanced to for more opportunity which high enthusiasm And I more to by is and design, us. much to distribution exciting the category board we globally. It’s gives which think channel product consumer than we’re a ever be, most sell-through segment I’ve the is brand sure of and that

to it’s put So tough it.

the the relying not and used innovation exciting on product there’s like, Classics, we a across to anymore more categories. be going We’re lot in all and

Jim Duffy

the that on what in comment Maybe outsized with us ready-to-wear that’s to some seeing little That’s like if you’re great momentum. coming years? Is from of detail feels and more mix you gaining stands? you that see sense a for expect where the can And in hear. apparel business. a to it percent It growth give

Dave Powers

Yeah. yes. The is, there answer

that this and for fashionable think e-commerce struck of comfortable think not You’re that be a and globally. UGG space globally. of I with so DNA, relying wholesale and drive it’s able white combination the apparel business us showcase a have significant learned to UGG But we distribution nerve our there perfect those that the looks with improved, a is through we growth on selective to in outsized great market for we retail, what year. It’s the share growth is is year can last for have capabilities getting head-to-toe channels to on that going launch is fully see ready-to-wear the I and consumer market fun, and relying brand

team positioning very Last be has done job us for proved year So the really was ourselves. it of a proof-of-concept and phenomenal to successful.

but global the on the areas three next both on more investment going marketing also consumers. We’re in super of the years see and that’s over years infrastructure one you’re bullish to about opportunity to five reaching and

Jim Duffy

the fiscal is Dave, clarification, this UGG to some looking I fiscal see growth strong term double-digit Jonathan’s a intermediate I still year am a I over just question of your And business in, comments beyond that XXXX, Great. growth of point XXXX? sorry, interpret you understand as the

Dave Powers

Jim. more That was related to total company,

Jim Duffy

Okay.

Dave Powers

Yeah.

Jim Duffy

you. Thank

Dave Powers

Thank Yeah. you.

Operator

Citi. Paul Lejuez Please from comes go with ahead. question next Your

Paul Lejuez

guys. Hey. Thanks,

you are that of five back this say? about growth inside or do much how revenue it should that’s being kind terms versus in-house, of about bringing plus of related the I as how going distributor you guys. year, $X whatever you to million the that brand down about incorporate about I might of the kind some model? of really back at to $XXX in-house that HOKA, use how retail that of years, that, next to an continue distributor you size of I of own to number be And you shifting Just you that in thinking to over talk am And revenue assumption be, of you’re business double-digit guess, talked couple obviously billion curious thinking years the can that road? large

Steve Fasching

Yeah. Yeah.

the our constant So all on basis I and ELT Board. question. are are with Those understand that questions a needling we

All of opportunities. are those

the and of I at distributors million $XXX not point. require this does think that $X take billion the number the backs

targets, that to of categories, down for to with able us dollar can see are these that where But a in for opportunity the growth that’s expanded road we at multi-billion is in us potential, think necessary brand right correctly. us that China outsized a point. term road it’s hit longer you requires do to further short-term be investment level from out apparel targets. there not today that infrastructure the along down The I some for a

Paul Lejuez

clear, fixing seeing, quarters? brands, when can which you. Got I that and any just Yeah. is that next we about which itself now to affecting you how be of to the kind see to just like, understand, talk might several right just do understand, And channels chain, want the be supply pressures want over you you most

Dave Powers

Yeah.

that in the the as and and getting standing DC, the and to orders success handled and of unsung the exist job. ability way right as say we our tremendous can. going forward, in the they’re up story What doing to of to inventory, heroes lot kind the out But getting year. across chase our next the inventory in account. operation in ramp-up last speaking seeing teams I is, that Board. credit The of new the domestic our the broadly in then this really would supply challenge risks it is the a DCs for growth chain They’re for a first and of means thing want and demand Midwest, months opportunities the now couple our over This to us the U.S., for I and the getting we’re and wholesale the fast give biggest they through environment

So list it’s us be year. and give we prioritizing a precisely opportunity say, hard which the say it’s best of successful I to brands we’re this have which how brand, to channel, et cetera. just would more channels and that broad-based within to

Steve Fasching

Paul unique And supply it’s whole channel the Yeah. and would chain -- I say us. to what is disruption on not

Dave Powers

Yeah.

Steve Fasching

in right is see the experiencing. news as everyone’s This you something

and cut better we’re I our in our as many our a a of many that, of result -- we peers, year position position orders as factories. a dramatically think our peers last because didn’t we’re with as than better of did, back in what

disruption. think of So as better very constraints going to a last position, positioned we given in up we we’re still better But we’re and year, how, most, Dave feel navigated still we’re we’re But into the as said, inventory year. what with. dealing mindful confront ramping than we

Dave Powers

in reflected I Yeah. our is think that And confidence guidance.

Paul Lejuez

Got you, Good Thank guys. luck. it.

Dave Powers

Thanks.

Operator

Please ahead. Our comes go next Advisory from question Telsey Group. Dana Telsey with

Dana Telsey

congratulations Good the afternoon on progress. and

As you about… think

Dave Powers

Dana. Thanks,

Dana Telsey

environment year, how you the any first -- current going roll-off, unpack how freight, the investment next COVID into fiscal the do going about think this you how year, and do between the Do you in-bucketing, As spend next COVID second or costs, it’s it’s whether the do half into of they it year? the costs? half whether of wages, see and

Steve Fasching

about spend think Good and build to coming earlier, of question. where we against And XXXX infrastructure. coming, in clearly, FY think than as revenue we said we’re was could position investments, as in a faster ramping Yeah. the I about it we

earlier, So I see in investments the we do to ramping think question year. Sam’s

some there So that some the going of talent But take the putting we’re time, upfront incurring year. bringing in of up costs is in bit new take will infrastructure little are a to time.

aspects, more marketing, to the those about related think see marketing build a year we upfront… In we doing as in again, you’ll that. So are

Dave Powers

Yeah.

Steve Fasching

fuel that … to marketplace. this demand in to we year, because want continue that’s the

increased So you’ll the the of the marketing see in first half of year. investments some

a if year. look it’s bit of whole the bag mixed you a So at

to time it -- some that investment. So takes but speaking, build generally

bit in more we’re first a a to spend of see aggressively will you speaking, that there But generally going ramp. components half. So are the

Dave Powers

Yeah.

to in have those it’s months people priority hard in challenging that as from it’s a places for one call so building ball freeze we hires. on talent environment, a But fast CHRO of call we Dana, pretty of ramp-up know working the year, are can said, were you think a how that China. is globe, new home, to with top I’ve it. said, for the our curve ago businesses last to, And do most like competitive globally related we And we still marketplace we’re out because to are the number hiring in infrastructure find marketing top this have and and team. a all three looking and to ahead of our our key much you and talent that the It’s -- about on of an there, came in brands on the hiring, that’s up is aggressive the really as I we’re the and strength around variable, catching the priority. opportunity lot selective momentum but the one really

rush to urgent it. are want on You we don’t bringing quick. about But pretty people

Dana Telsey

key people the in? what’s And bringing it you’re you’re is on it bringing your priorities marketing, in, who is merchants apparel, in for

Dave Powers

China, creative capabilities. e-commerce marketing, for and digital

Dana Telsey

at increases, does this see price then it all year any differ brand? will by price and increases And we

Dave Powers

You But we be styles, about a value ones a based the We this speaking, proposition. for some perspective. won’t There an see Fluff from prices. generally category proposition from consumer broad-based pricing very increases us might good our think on the compelling feel and is is opportunity price selective for year.

about think brands are talking it’s and other this strategy At Some raising of not there. here ours. prices broad-based a point, I

our a We’re very on making continuing compelling have focus consumer. to sure we that for offer

Dana Telsey

about? last one be DICK’S, wholesale customers, you’re with on thing, expanding any anything thinking new Just others we that should

Dave Powers

and the generally, on about lifestyle key have. top that with opportunity Not that of year. the that still are strategic accounts HOKA size. just UGG People reducing Selective think and key focused this But ones, we Free like for accounts launching we’re we more accounts

So wholesale is wholesale get into a UGG opportunities major HOKA, new ours. other than we’re expansion door speaking, where of for to strategy but a younger or get category generally trying expansion opportunities not consumer in

Dana Telsey

Thank you.

Dave Powers

bet. You

Operator

from comes Exane ahead. with Please BNP question Laurent go final Paribas. Vasilescu Our

Laurent Vasilescu

But afternoon about of squeezing and Historically, pretty Steve, consistent you thank revenues to prepared your been for us you’re understand XH benchmarks? I revenues. give are year that, not that, of in think, you’ve Good can represent you XX% kind kind guide. mentioned your giving your quarterly overall guidance. me a just of revenues overall you half anticipated first I larger remarks your you full in. percentage Oh! of

to helpful? for be on framework just any So us very understand that would

Steve Fasching

Yeah.

the at to earlier will be occurring, -- go there around majority them according a on about pieces. working revenue DC. I and The but the our trying growth is turned QX when not first It’s still inventory, we also in giving said, think guidance, to strong as where plan to Q&A, percentage large Dave the, percentage said earlier. again, that have rebuilding if I things as for take of -- QX. But and inventory then think again, year, is expect, you time we moving be our lot lapping of the very growth wholesalers will again, lot our half. as of a of There product get that in as with majority we’re

relatively percentage the good we it, a play so inventory stronger think their on create rebuilding well, as place right, will much I in as in are half. growth they first levels out where if terms see things a that we’re

that lands. Now can shipping of to have of kind some that lot goes which is which we quarters, drift, the of guidance two weeks why final is we want it of out don’t yet because a way again, in give those

So easy things relatively quarters. can move between

Laurent Vasilescu

your some prepared growth, does roughly overseas, that revenues Very in international number us maybe can And is terms XX% in kind your helpful. distribution of give context taking XX% then full year do half of terms Europe? any remarks it growth, And of in-house you follow-up done for you fall year, anticipate pairs, the any in HOKA then dollars? alluded growth, of of as where your in a the the in does to fiscal of question, XXXX, just I think terms

Steve Fasching

I’ll first. this last year. Yeah. at No. take stage or We do Not the not. this one

we more Other this bit way. again, on bit again, break the of color front at year, looking to the really say, just give on growth And back domestic as terms. in lap percentage in international, that are We half little the half, little terms then in than a bigger HOKA a versus on of don’t say, we to out. I’ll quarters half,

Laurent Vasilescu

Thank you very much.

Dave Powers

Yeah.

Operator

and This concluded. for also concludes today’s attending you the is our conference Thank session now question-and-answer presentation.

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Deckers Outdoor (DECK) 21 May 212021 Q4 Earnings call transcript