UGG Brand Leads Deckers’ Q2 Growth with Robust Wholesale and International Momentum
Deckers’ UGG segment outpaced overall company growth in Q2, driven by robust wholesale demand and accelerating international expansion. The brand’s momentum highlights widening global footprint in key overseas markets.
1. Robust Q2 Revenue Growth Driven by UGG Brand
Deckers Brands reported second-quarter revenue of $1.42 billion, a 17% increase year-over-year, led by UGG’s exceptional performance. The UGG division generated $980 million in sales, up 19%, driven by renewed wholesale orders from key retail partners and a 12% lift in direct-to-consumer channels. Management cited strong seasonal demand for core shearling and boots, with units sold growing by 16%, underscoring the brand’s continued appeal in mature and emerging markets.
2. Wholesale Channel Sees Accelerated Momentum
Wholesale revenue climbed 25% on a constant-currency basis, contributing $640 million to the quarter’s total. Deckers expanded its retail partner network by signing distribution agreements in three new European markets, boosting international wholesale sales by 23%. Inventory sell-through rates improved to 87% compared with 82% a year earlier, reflecting effective product allocation and favorable consumer reception of new colorways and limited-edition collaborations.
3. International Expansion Fuels Future Upside
International sales accounted for 48% of total revenue, up from 44% in the prior-year period, with the Asia-Pacific region delivering a 28% jump and Europe rising 21%. Deckers opened 12 new concept stores across China and South Korea during the quarter, and digital revenue outside North America grew 34%, propelled by localized marketing campaigns and partnerships with regional e-commerce platforms. Management reiterated its full-year guidance of mid-teens revenue growth, underpinned by further global retail openings and product innovation in performance and lifestyle categories.