February 23, 2024
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Deckers announces positive earnings, CEO succession plans

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Goleta-based Deckers saw shares jump up 14% on Feb. 2, one day after the company delivered record results during its third-quarter earnings release as well as the news that longtime President and CEO Dave Powers will be retiring on Aug. 1.

According to a press release, Powers will still be serving on Deckers’ board of directors through the 2025 annual meeting of shareholders. Taking his place will be Stefano Caroti, the company’s chief commercial officer, effective on Aug. 1.

Deckers also expects Caroti will be nominated to serve as a member of the Board at the 2024 annual meeting of stockholders, according to the release.

Powers has been the CEO of Deckers since 2012 and has helped grow the Ugg and Hoka One One brands to great billion-dollar heights during his tenure.

“Serving as CEO of┬áDeckers has been a great honor, and I am incredibly proud of our accomplishments to date,” said Powers.

Powers also noted the team is “thrilled” to name Stefano as the next chief executive, having led the company’s omni-channel, regional and Hoka brand operations during “some of Deckers most pivotal years.

Before joining Deckers, Caroti was the chief commercial officer and managing director at Puma and held several senior executive positions at Nike.

“It is a privilege to step into this role as we continue to build on┬áDeckers’ strong momentum,” said Caroti. “Over the next six months, I look forward to working with Dave, who is a great mentor, colleague and friend, to continue executing on our strategy and ensure a smooth transition.”

During the third quarter of 2023-24, Deckers generated record revenue of $1.56 billion, which was up 16% year over year. Its outperformance in also motivated management to raise its full-year net sales guidance from $4.025 billion to $4.15 billion, exciting investors.

Deckers third-quarter adjusted earnings of $15.11 a share also beat the FactSet consensus estimate of $11.49 a share.

So despite the leadership shakeup, Deckers still saw shares jump 14% to close at $882 on Feb. 2.

Shares of Deckers are up more than 110% since last year.

email: jmercado@pacbiztimes.com