Deckers Outdoor Corporation (DECK) Bundle
A Brief History of Deckers Outdoor Corporation (DECK)
Founding and Early Years
Deckers Outdoor Corporation was founded in 1973 by Doug Otto and Patricia F. Decker. The company originated in California, initially focusing on outdoor footwear and accessories. The first product was the famous Deckers sandal.
Acquisition of UGG Australia
In 1995, Deckers acquired UGG Australia, which marked a pivotal point in the company's growth. UGG became synonymous with luxury sheepskin boots, and its acquisition significantly boosted Deckers' market presence.
IPO and Financial Performance
Deckers Outdoor Corporation went public in 1993, trading on the NASDAQ under the ticker symbol DECK. As of December 2022, the company reported a revenue of $3.29 billion, showing a notable increase from $2.85 billion in 2021.
| Year | Revenue (in billion $) | Net Income (in million $) | EPS ($) |
|---|---|---|---|
| 2018 | 1.85 | 188 | 5.35 |
| 2019 | 2.09 | 231 | 6.46 |
| 2020 | 2.05 | 197 | 5.55 |
| 2021 | 2.85 | 410 | 11.36 |
| 2022 | 3.29 | 480 | 13.52 |
Product Expansion and Diversification
Deckers expanded its product line by introducing various brands, including Hoka One One in 2013, Teva, and Sanuk, which cater to diverse consumer needs. As of 2022, Hoka One One contributed significantly to Deckers' revenue, with sales growth surpassing 30% year-over-year.
Global Reach and Market Presence
Deckers has established a strong global presence, with products available in over 50 countries. The company operates retail stores as well as an extensive eCommerce platform, which accounted for approximately 60% of total sales in 2022.
Financial Highlights and Stock Performance
As of October 2023, the market capitalization of Deckers Outdoor Corporation stood at approximately $9.1 billion. The stock price has seen significant growth, increasing from $150 in early 2020 to approximately $400 by October 2023.
| Year | Stock Price (end of year $) | Market Cap (in billion $) | Dividend Yield (%) |
|---|---|---|---|
| 2018 | 102.00 | 3.4 | 0.8 |
| 2019 | 139.12 | 4.6 | 0.8 |
| 2020 | 174.25 | 5.7 | 0.5 |
| 2021 | 276.74 | 8.9 | 0.4 |
| 2022 | 300.50 | 9.3 | 0.3 |
| 2023 | 400.00 | 9.1 | 0.4 |
Sustainability Initiatives
Deckers is committed to sustainability, with initiatives that include using recycled materials in production and improving supply chain transparency. In 2021, approximately 20% of its products were made with sustainable materials.
Recent Developments
In 2023, Deckers announced plans to expand its Hoka One One brand into the Asian market, aiming for a 15% increase in international sales. The company also revealed a partnership with the World Wildlife Fund (WWF) to enhance environmental practices.
A Who Owns Deckers Outdoor Corporation (DECK)
Overview of Ownership Structure
Deckers Outdoor Corporation (DECK) is publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol "DECK." As of the latest available data, the company's ownership is divided among institutional investors, individual shareholders, and corporate insiders.
Major Institutional Shareholders
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 3,902,631 | 15.2% |
| BlackRock, Inc. | 3,429,454 | 13.4% |
| SSgA Funds Management, Inc. | 1,950,044 | 7.6% |
| Wellington Management Co. LLP | 1,800,000 | 7.0% |
| AllianceBernstein L.P. | 1,412,815 | 5.5% |
Insider Ownership
As of the latest filings, insiders hold a significant portion of Deckers Outdoor Corporation's shares. The following table summarizes the insider ownership.
| Name | Position | Shares Held | Percentage of Ownership |
|---|---|---|---|
| Dave Powers | President & CEO | 109,123 | 0.4% |
| John G. Koryl | Chief Operating Officer | 30,000 | 0.1% |
| Angela K. H. Pruitt | Chief Financial Officer | 15,000 | 0.06% |
Top Individual Shareholders
The individual ownership of Deckers Outdoor Corporation is minimal compared to institutional ownership, but noteworthy individuals do hold shares.
| Name | Shares Held | Percentage of Ownership |
|---|---|---|
| Kimberly K. Rulon | 10,000 | 0.04% |
| Mark C. Weller | 5,000 | 0.02% |
| Christine M. Whitaker | 2,000 | 0.01% |
Shareholder Composition
The shareholder composition of Deckers Outdoor Corporation is characterized by a high percentage of institutional ownership, reflecting the confidence institutions have in the company's performance.
- Institutional Ownership: Approximately 75%
- Insider Ownership: Approximately 2%
- Retail/Public Ownership: Approximately 23%
Recent Performance Indicators
As of the latest financial reports, Deckers Outdoor Corporation has shown a strong performance in the retail market.
| Metric | Value |
|---|---|
| Market Capitalization | $9.70 Billion |
| Revenue (2023) | $3.12 Billion |
| Net Income (2023) | $550 Million |
| EPS (Earnings Per Share) | $19.82 |
Conclusion on Ownership Trends
The ownership structure of Deckers Outdoor Corporation illustrates a company that is primarily owned by institutional investors, alongside a modest presence of individual and insider shareholders, which aligns with industry trends in publicly traded companies.
Deckers Outdoor Corporation (DECK) Mission Statement
Core Mission Statement
Deckers Outdoor Corporation aims to develop innovative and high-quality footwear, apparel, and accessories focused on performance and style. The company emphasizes sustainability and social responsibility while delivering exceptional value to customers and shareholders.
Strategic Goals
- To expand global market presence through strategic marketing and partnerships.
- To enhance product innovation and technology across all brands.
- To promote sustainable practices within supply chains and manufacturing processes.
- To achieve long-term, profitable growth while enhancing shareholder value.
Financial Overview
As of the fiscal year 2023, Deckers reported the following financial figures:
| Metric | Amount (USD) |
|---|---|
| Revenue | 1.96 billion |
| Net Income | 314 million |
| Gross Margin | 53.2% |
| Operating Income | 386 million |
| Debt to Equity Ratio | 0.45 |
| Market Capitalization | 6.5 billion |
Brand Portfolio
Deckers Outdoor Corporation operates several well-known brands, each contributing to the company’s mission of innovation and quality:
- HOKA ONE ONE
- Teva
- UGG
- Sanuk
- Keen
Sustainability Initiatives
The company has made substantial commitments to sustainability, including:
- Reducing greenhouse gas emissions by 30% by 2030.
- Implementing a circular economy strategy for end-of-life products.
- Utilizing sustainable materials in products, targeting 100% by 2025.
Market Position
Deckers holds a significant market share within the footwear industry, specifically:
| Brand | Market Share (%) |
|---|---|
| UGG | 25% |
| HOKA ONE ONE | 15% |
| Teva | 10% |
Customer Engagement
Deckers places a strong emphasis on customer engagement through various channels:
- Social Media Followers: 2 million on Instagram
- Email Subscribers: 850,000
- Customer Satisfaction Score: 88% in 2023
How Deckers Outdoor Corporation (DECK) Works
Company Overview
Deckers Outdoor Corporation, trading under the symbol DECK, is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories. As of the fiscal year 2022, the company reported revenues of approximately $1.43 billion.
Brands and Products
- UGG
- Teva
- Hoka One One
- Sanuk
The UGG brand represents about 70% of Deckers' total sales, with Hoka One One witnessing the fastest growth rate, achieving an increase of about 50% year-over-year in 2022.
Financial Performance
In the annual report for 2022, Deckers reported:
| Metric | 2022 Amount | 2021 Amount |
|---|---|---|
| Revenue | $1.43 billion | $1.25 billion |
| Net Income | $251 million | $229 million |
| Earnings per Share (EPS) | $10.10 | $9.05 |
| Operating Income | $336 million | $297 million |
Market Position and Strategy
Deckers focuses on direct-to-consumer channels, which comprise over 50% of total sales. Their strategic initiative aims to expand DTC sales through e-commerce platforms and branded retail locations.
Geographic Revenue Breakdown
For the fiscal year 2022, the geographic revenue distribution was as follows:
| Region | Revenue | Percentage of Total Revenue |
|---|---|---|
| North America | $1.02 billion | 71% |
| International | $420 million | 29% |
Investment and Growth Opportunities
Deckers has set aside approximately $150 million for capital expenditures in expanding their manufacturing capabilities and enhancing supply chain efficiencies for fiscal year 2023.
Sustainability Practices
Deckers has committed to reducing carbon emissions across its supply chain by 25% by 2030 and aims to use 100% renewable energy in its global operations by 2025.
Stock Performance
As of October 2023, Deckers' stock price stands at approximately $455.23, with a market capitalization of around $11.5 billion. The company's Price-to-Earnings (P/E) ratio is approximately 31.5.
Conclusion
Deckers Outdoor Corporation continues to innovate in the footwear industry while focusing on sustainable practices and strategic growth in market segments and geographic regions.
How Deckers Outdoor Corporation (DECK) Makes Money
Revenue Streams
Revenue Streams
Deckers Outdoor Corporation generates revenue primarily through its core brands: UGG, HOKA ONE ONE, Teva, and Sanuk. In the fiscal year 2023, the company reported total revenue of $1.482 billion.
Brand Performance
The financial performance of each brand varies significantly, contributing to the overall revenue. The breakdown for fiscal year 2023 is as follows:
| Brand | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| UGG | $915 | 61.8% |
| HOKA ONE ONE | $460 | 31.0% |
| Teva | $85 | 5.7% |
| Sanuk | $22 | 1.5% |
Sales Channels
Deckers utilizes multiple sales channels to enhance its reach:
- Wholesale distribution
- Direct-to-consumer (DTC) sales through branded retail stores
- Online sales via its own website and third-party platforms
Direct-to-Consumer (DTC) Sales Growth
In fiscal year 2023, the DTC sales accounted for approximately 54% of total revenue, reflecting an increase from 49% in 2022.
| Year | DTC Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| 2021 | $698 | 47.1% |
| 2022 | $727 | 49.0% |
| 2023 | $798 | 54.0% |
International Sales
International sales contribute significantly, with 38% of total revenues arising from outside the United States in 2023.
Product Pricing Strategy
Deckers employs a premium pricing strategy for brands like UGG and HOKA, contributing to higher margins. The average selling price for UGG boots is approximately $150, while HOKA shoes average around $140.
Cost of Goods Sold (COGS)
The COGS for Deckers increased to 55% of total revenue in 2023, compared to 53% in 2022. This increase affects the overall profitability.
| Year | COGS as Percentage of Revenue |
|---|---|
| 2021 | 52% |
| 2022 | 53% |
| 2023 | 55% |
Profitability Metrics
Deckers reported a gross profit of $667 million for fiscal year 2023, leading to a gross margin of approximately 45%. The operating income for the same year was reported at $241 million, with an operating margin of 16.3%.
Marketing and Advertising
In 2023, Deckers' marketing and advertising expenses were approximately $136 million, equating to about 9.2% of total revenue.
Future Growth Prospects
Deckers has indicated plans to expand its product lines and increase its digital presence, anticipating a revenue growth rate of 10% in the coming fiscal year.
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