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Explore Deckers Outdoor's strategic landscape with its Business Model Canvas. Uncover how they craft value, engage customers, and manage costs. The canvas illuminates key partnerships, channels, and revenue streams. Understand the core activities driving their market success. Download the full Business Model Canvas for in-depth analysis and strategic insights.
Partnerships
Deckers Outdoor strategically teams up with major retailers to boost market presence. Collaborations span physical stores and online channels, boosting distribution and brand recognition. In 2024, Deckers' net sales were $4.29 billion, driven by strong retail performance. They are expanding partnerships for exclusive products and promotions, strengthening customer bonds.
Deckers Outdoor depends on its supply chain partners to produce its products. These relationships are key for maintaining product quality and meeting production needs. In 2024, Deckers had 39 Tier 1 factory partners and 224 Tier 2 supplier partners. The company actively manages these partnerships to ensure ethical and sustainable practices are followed.
Deckers Outdoor leverages technology collaborations to boost digital platforms and e-commerce. These partnerships enhance online shopping and personalize customer interactions. In 2024, investments in tech collaborations surged, focusing on digital platform integration. This strategic move ensures Deckers' competitiveness, with substantial funds allocated for 2025. Approximately 20% of Deckers' marketing budget in 2024 was dedicated to digital initiatives.
International Distributors
Deckers relies on international distributors to extend its market reach beyond directly managed operations. These distributors bring local market knowledge and established networks to the table, which is crucial for boosting sales and entering new markets. Strengthening these partnerships is critical to Deckers' global expansion and brand appeal across different consumer groups. In fiscal year 2024, international net sales accounted for approximately 40% of Deckers' total net sales, showing the importance of these distributors.
- Market Penetration: Distributors help Deckers enter new geographical markets.
- Local Expertise: Distributors offer insights into local consumer preferences.
- Sales Growth: Strong distributor relationships boost overall sales figures.
- Global Footprint: Partnerships are key to Deckers' worldwide presence.
Brand Collaborations
Deckers Outdoor often teams up with other brands for unique products. These collaborations create limited-edition items, expanding their reach. Partnerships with influencers and brands generate excitement and attract new customers. This strategy keeps Deckers innovative, crucial in a competitive market. In 2024, collaborations boosted sales by 10%.
- Partnerships increase brand visibility and sales.
- Limited-edition products attract new customer segments.
- Collaborations reinforce brand image.
- Deckers aims to stay relevant and innovative.
Deckers Outdoor strategically partners with retailers, boosting market presence and distribution channels, with 2024 net sales reaching $4.29 billion. Supply chain partners are crucial, with 39 Tier 1 and 224 Tier 2 suppliers in 2024, ensuring quality and ethical practices. Tech collaborations enhance digital platforms, with about 20% of the 2024 marketing budget allocated to digital initiatives.
| Partnership Type | Objective | 2024 Impact |
|---|---|---|
| Retail Partnerships | Boost Market Presence, Sales | $4.29B in Net Sales |
| Supply Chain | Quality, Production, Ethical Practices | 39 Tier 1, 224 Tier 2 Suppliers |
| Tech Collaborations | Enhance Digital Platforms | 20% Marketing Budget on Digital |
Activities
Deckers prioritizes product design and innovation to stay competitive. This includes research and development, monitoring market trends, and using customer feedback. Deckers' innovation is vital for sales, especially for brands like UGG and HOKA. In January 2024, HOKA sales increased by 27.9% demonstrating the impact of product innovation. The Hoka Bondi 9 is a good example.
Deckers focuses heavily on brand marketing and promotion to boost awareness and sales. This includes digital marketing, social media, and influencer collaborations. In 2024, they ramped up digital ad spending, reflecting the importance of online presence. Deckers' marketing efforts are crucial for maintaining brand image and drawing in customers across its brand portfolio.
Deckers heavily focuses on its Direct-to-Consumer (DTC) sales through e-commerce and retail stores. This strategy allows Deckers to control its brand image and enhance customer experience. Managing online platforms, running retail locations, and personalizing interactions are key. DTC's revenue share rose from 35.4% in FY2019 to 43.3% by FY2024, boosting profitability.
Wholesale Distribution
Deckers' wholesale distribution is a cornerstone of its business, utilizing partnerships with retailers globally. This approach allows for extensive market penetration and brand visibility, crucial for reaching diverse consumer segments. Deckers manages retailer relationships and ensures timely product delivery, supported by marketing. In fiscal year 2024, wholesale net sales were $2.99 billion, a 20.4% increase year-over-year.
- Wholesale revenue growth showcases the strength of Deckers' distribution network.
- Sales representatives in the U.S. facilitate wholesale operations.
- Deckers' wholesale strategy complements its direct-to-consumer (DTC) efforts.
- The wholesale channel remains a significant revenue driver.
Supply Chain Management
Deckers Outdoor's supply chain is a critical Key Activity, ensuring the efficient production and distribution of its footwear and apparel. This involves sourcing materials, managing manufacturing, and overseeing logistics to get products to consumers. Effective supply chain management helps Deckers control costs and meet customer expectations. In April 2024, Deckers had 39 Tier 1 factory partners and 224 Tier 2 supplier partners.
- Global Network: Deckers relies on a vast network of suppliers and factories worldwide.
- Cost Control: Efficient supply chain management helps Deckers minimize production and distribution costs.
- Product Availability: Ensuring product availability is a key goal of the supply chain.
- Sustainability: Deckers focuses on ethical sourcing and sustainable practices within its supply chain.
Deckers' Key Activities encompass product innovation, marketing, direct-to-consumer sales, wholesale distribution, and supply chain management. These activities are essential for driving revenue, brand visibility, and customer engagement. As of fiscal year 2024, DTC sales increased significantly, highlighting the importance of their strategic focus.
| Key Activity | Description | Impact |
|---|---|---|
| Product Innovation | Focus on R&D, market trends, and customer feedback | HOKA sales rose by 27.9% in January 2024 |
| Brand Marketing | Digital marketing, social media, and influencer collaborations | Increased digital ad spending in 2024 |
| DTC Sales | E-commerce and retail stores | DTC revenue share rose to 43.3% by FY2024 |
| Wholesale Distribution | Partnerships with retailers globally | Wholesale net sales were $2.99 billion in FY2024 |
| Supply Chain | Sourcing, manufacturing, and logistics | 39 Tier 1 factories in April 2024 |
Resources
Deckers' brand portfolio, including UGG and HOKA, is a key resource. These brands have strong market presence and customer loyalty. In fiscal year 2024, UGG and HOKA drove significant revenue. Managing this portfolio sustains long-term growth. UGG and HOKA's combined net sales were approximately $3.7 billion in fiscal 2024.
Deckers' intellectual property, encompassing trademarks, patents, and designs, is crucial for its business. This IP safeguards the company's brand and product innovations, offering a competitive edge. In 2024, Deckers' focus on protecting these assets, including through legal actions, helped maintain its market position. The company's trademarks, like UGG and HOKA, are essential for brand recognition.
Deckers Outdoor's distribution network is key, including wholesale, international distributors, e-commerce, and retail stores. This broad network helps Deckers reach global customers and efficiently deliver products. In 2024, wholesale represented a significant portion of sales, approximately 40%. Optimizing and expanding this network is vital for sales growth.
Design and Innovation Capabilities
Deckers Outdoor's strength lies in its design and innovation capabilities, a pivotal resource for its success. This encompasses its R&D teams, design facilities, and expertise in footwear, apparel, and accessories. Continuous innovation is key to adapting to consumer demands and competitive pressures. Deckers invests in R&D to improve comfort, performance, and sustainability across its brands. In 2024, Deckers' R&D spending reached $60 million, reflecting its commitment to innovation.
- R&D Investment: $60 million in 2024.
- Focus: Enhancing comfort, performance, and sustainability.
- Impact: Meeting evolving consumer needs.
- Strategy: Technological advancements in footwear.
Financial Resources
Deckers Outdoor benefits greatly from its financial resources, a core strength. This includes robust cash reserves and easy access to capital, vital for strategic moves. Such financial health supports investments in growth and acquisitions. Effective cash flow management is key for sustained success.
- Deckers had $2.241 billion in cash and equivalents as of December 31, 2024.
- The company had no outstanding borrowings as of the same date.
- Financial strength enables strategic investments.
- Cash flow management is crucial for long-term stability.
Deckers Outdoor relies on its strong brand portfolio, notably UGG and HOKA, which drove approximately $3.7 billion in net sales in fiscal year 2024. Protecting intellectual property, including trademarks, is crucial for brand recognition. The distribution network, with wholesale accounting for roughly 40% of sales in 2024, ensures product reach.
| Key Resource | Description | 2024 Data |
|---|---|---|
| Brand Portfolio | UGG, HOKA and others. | Combined net sales: ~$3.7B |
| Intellectual Property | Trademarks, patents, designs. | Ongoing protection of assets |
| Distribution Network | Wholesale, e-commerce, retail. | Wholesale: ~40% of sales |
Value Propositions
Deckers excels with innovative designs blending style, comfort, and function, attracting diverse consumers. Their focus on footwear, apparel, and accessories, meets the demands for fashionable and practical items. Continuous innovation differentiates Deckers, supporting its wide consumer appeal. In 2024, Deckers' revenue reached approximately $4.3 billion, showing the success of their value proposition.
Deckers' brand reputation, especially with UGG and HOKA, is a key value proposition. This reputation boosts customer trust and loyalty, supporting repeat sales. In 2024, UGG sales grew, signaling brand strength. Deckers' focus on quality and style sustains its market position. Brand reputation drives long-term growth.
Deckers champions global accessibility through its widespread distribution, spanning retail, e-commerce, and wholesale channels. This strategy ensures easy product access for customers worldwide. In 2024, international sales comprised a significant portion of Deckers' revenue, highlighting the importance of its global reach. Deckers' expanding international footprint, a core growth strategy, boosts its global accessibility value proposition. The company's global presence is key for revenue growth.
Performance and Lifestyle Integration
Deckers Outdoor excels by blending performance and lifestyle seamlessly. This strategy attracts a diverse customer base, boosting sales. Their products serve both athletes and everyday users, expanding market reach. Deckers designs for high-performance needs and casual wear, appealing to a wide audience.
- In 2024, Deckers' net sales reached approximately $4.29 billion, reflecting this broad appeal.
- The UGG brand, a key part of this strategy, saw net sales of about $2.35 billion in 2024.
- HOKA, another crucial brand, contributed around $1.80 billion to the total net sales in 2024.
- This approach helps Deckers maintain a robust gross margin, which was around 52.4% in 2024.
Sustainability Commitment
Deckers Outdoor prioritizes sustainability, resonating with eco-aware consumers and boosting its brand. This commitment involves sustainable manufacturing and eco-friendly materials. In 2024, Deckers aims to cut carbon emissions and boost recycled materials use. This reinforces its dedication to environmental responsibility.
- In 2023, Deckers reported a 10% increase in the use of sustainable materials.
- Deckers plans to achieve a 30% reduction in Scope 1 and 2 emissions by 2030.
- The company's "Project Earth" initiative focuses on sustainable practices.
- Deckers' sustainability efforts enhance its ESG (Environmental, Social, and Governance) profile.
Deckers Outdoor's value is in its stylish, functional designs, attracting varied consumers. Brand reputation, especially with UGG and HOKA, drives customer loyalty. Global distribution, spanning retail and e-commerce, ensures easy product access.
| Value Proposition Aspect | Description | 2024 Data Highlights |
|---|---|---|
| Product Design | Innovative designs blending style and function. | Net sales approximately $4.29B. UGG sales about $2.35B. |
| Brand Strength | Strong brand reputation, especially UGG and HOKA. | HOKA sales were around $1.80B. Gross margin about 52.4%. |
| Accessibility | Global distribution through multiple channels. | Continued international sales growth, expanding footprint. |
Customer Relationships
Deckers focuses on personalized online experiences via targeted marketing and product recommendations, boosting customer engagement and sales. Collaborations with tech companies are vital for enhancing the online shopping journey and tailoring interactions. In 2024, Deckers saw a 16.6% increase in direct-to-consumer net sales, highlighting the effectiveness of its online strategy.
Deckers builds customer relationships through loyalty programs, rewarding repeat purchases. These programs offer perks like discounts and early product access. This strategy boosts customer retention and value. UGG saw a 25% jump in UGG Reward members in Q3 FY2025, showing their effectiveness.
Deckers leverages social media to connect with customers, build communities, and offer support, boosting loyalty. Social media is crucial for brand marketing; in 2024, its marketing expenses were $439.8 million. This approach helps Deckers gather feedback, refining products and strategies. Engagement on platforms like Instagram and Facebook is vital for brand visibility.
In-Store Customer Service
Deckers excels in in-store customer service, boosting shopping experiences and customer bonds. Staff offer product advice, sizing, and styling tips. This enhances customer satisfaction and repeat business. In 2024, Deckers' retail sales grew, showing the impact of positive in-store encounters.
- Focus on staff training ensures product knowledge.
- Customer feedback is used to improve service.
- In-store events build community and loyalty.
- Service directly influences sales figures.
Customer Feedback Mechanisms
Deckers prioritizes understanding customer needs. They use surveys, reviews, and social media to collect feedback, driving product and service improvements. This commitment to customer satisfaction is a core element of their strategy. Customer feedback directly influences product design and development.
- In 2023, Deckers' net sales grew 10% to $4.29 billion.
- They experienced strong demand across brands, particularly HOKA and UGG.
- Customer feedback helps refine product offerings and marketing strategies.
Deckers strengthens customer bonds through online and in-store strategies, improving sales. They use loyalty programs and targeted marketing. Social media boosts engagement, while in-store service enhances experiences.
| Strategy | Description | Impact |
|---|---|---|
| Online | Personalized experiences and tech collaborations. | Direct-to-consumer sales rose 16.6% in 2024. |
| Loyalty | Rewards repeat purchases. | UGG Rewards grew 25% in Q3 FY2025. |
| Social Media | Community building and support. | Marketing spend was $439.8 million in 2024. |
Channels
Deckers leverages e-commerce websites for direct-to-consumer (DTC) sales. These platforms showcase a broad product range with detailed info and secure payment. E-commerce is vital for global reach. As of March 2024, Deckers had e-commerce sites in 56 countries. In fiscal year 2024, DTC net sales were $1.72 billion.
Deckers strategically uses retail stores to boost brand visibility and offer a personalized shopping experience. These locations, like the 26 HOKA stores as of March 2024, feature expert advice and a curated product selection. Retail presence enhances customer engagement and drives sales growth. Deckers operated 164 retail stores worldwide as of March 2024.
Deckers Outdoor partners with various wholesale retailers, including department and specialty stores, and online marketplaces, to broaden its market reach. In 2024, wholesale revenue accounted for a substantial portion of Deckers' total sales, indicating the continued importance of these partnerships. Wholesale distribution is a key driver for increased sales volume, extending the brand's presence. This strategy allows Deckers to access diverse customer segments efficiently.
International Distributors
Deckers relies on international distributors to sell its products in regions where it doesn't directly operate. These distributors have local market knowledge and networks, which helps Deckers enter new markets and boost sales. Cultivating strong relationships with distributors is essential for expanding Deckers' presence globally. In fiscal year 2024, international net sales were $1.65 billion, a 24.6% increase compared to 2023.
- International sales growth is a key focus.
- Distributors are crucial for local market expertise.
- Building relationships is vital for expansion.
- International net sales reached $1.65B in FY24.
Mobile Apps
Deckers' mobile apps are a key channel, offering easy access to products and exclusive content. These apps boost customer engagement and mobile sales, crucial for reaching today's consumers. In 2024, mobile commerce accounted for a significant portion of online retail. Deckers' apps provide personalized shopping experiences.
- Mobile sales are an important part of Deckers' revenue.
- Apps provide brand-specific content and promotions.
- They enhance customer engagement and loyalty.
- The mobile app strategy drives sales and brand visibility.
Deckers utilizes multiple channels, including DTC e-commerce, retail stores, and wholesale partnerships, to reach customers effectively. In fiscal year 2024, DTC sales were $1.72B. Wholesale revenue is a key component. International distributors support global expansion, with international net sales reaching $1.65B in FY24.
| Channel | Description | FY24 Data |
|---|---|---|
| E-commerce | Direct sales via websites, global reach. | DTC sales: $1.72B |
| Retail Stores | Brand visibility and personalized shopping. | 164 stores worldwide |
| Wholesale | Partnerships with retailers. | Significant revenue share |
Customer Segments
Deckers Outdoor, through HOKA, focuses on performance athletes. These athletes seek top-tier footwear and apparel. HOKA's innovative designs target running and training. In 2024, HOKA sales surged, reflecting its performance leadership.
Deckers Outdoor strategically focuses on casual lifestyle consumers through its UGG brand. This segment prioritizes comfort, quality, and brand image. UGG caters to those seeking fashionable, comfortable products for daily use. In 2024, UGG's revenue demonstrated the brand's appeal, indicating strong consumer demand.
Deckers Outdoor's Teva brand is focused on outdoor enthusiasts, offering durable footwear. This segment values high performance and versatility for activities like hiking and water sports. In 2024, the outdoor recreation market was estimated at $45.7 billion. Teva's sales grew, reflecting the ongoing appeal of outdoor adventures.
Fashion-Conscious Shoppers
Deckers Outdoor caters to fashion-conscious shoppers with stylish footwear and accessories. This segment prioritizes trendy designs and brand recognition. Deckers' effective product launches help capture diverse customer segments and stay ahead of trends. The company's revenue in fiscal year 2024 was approximately $4.29 billion, which reflects its ability to resonate with fashion-forward consumers.
- Diverse Brand Portfolio: Includes brands like UGG, HOKA, and Teva, offering various styles.
- Trend-Driven Designs: Focus on fashion-forward aesthetics and staying current with trends.
- Brand Recognition: Values well-known brands and their associated status.
- Effective Product Launches: A key strategy for capturing new customer segments.
International Customers
Deckers strategically focuses on international customers, utilizing a global distribution network to reach diverse markets. This segment appreciates culturally relevant marketing and localized product offerings. International sales were significant, accounting for 33.2% of Deckers' FY2024 revenue. This highlights the importance of understanding and catering to global consumer preferences.
- Global Presence: Deckers operates in numerous countries.
- Cultural Adaptation: Marketing is tailored to local tastes.
- Revenue Contribution: International sales are a key revenue driver.
- Market Focus: Emphasis on understanding global consumer needs.
Deckers Outdoor targets performance athletes, casual lifestyle consumers, and outdoor enthusiasts. Fashion-conscious shoppers and international customers also form key segments. The company's diverse brand portfolio, including UGG and HOKA, appeals to various consumer needs. International sales represented 33.2% of Deckers' FY2024 revenue.
| Customer Segment | Brands | Focus |
|---|---|---|
| Performance Athletes | HOKA | Top-tier footwear, apparel |
| Casual Lifestyle Consumers | UGG | Comfort, brand image |
| Outdoor Enthusiasts | Teva | Durability, versatility |
| Fashion-Conscious Shoppers | Various | Trendy designs |
Cost Structure
Deckers' Cost of Goods Sold (COGS) includes raw materials, manufacturing, and labor for footwear, apparel, and accessories. Efficient COGS management is vital for profitability. In fiscal year 2023, Deckers' COGS totaled $1.49 billion. This reflects the expenses tied to producing and delivering its products to consumers. Minimizing these costs helps enhance the company's financial performance.
Deckers significantly allocates resources to marketing and advertising to boost brand visibility and sales. These expenditures cover digital marketing, social media initiatives, and collaborations with influencers. For the second quarter of fiscal year 2025, SG&A expenses, which include marketing, totaled $428.2 million. A robust marketing strategy is crucial for brand recognition and customer acquisition.
Deckers dedicates resources to research and development, fostering innovation and product enhancement. These costs encompass salaries for design and engineering teams, along with expenses for product testing and prototyping. In 2024, Deckers' R&D spending was approximately $50 million. This investment is crucial for maintaining a competitive advantage and adapting to consumer demands. Deckers prioritizes technological advancements across its brands, focusing on comfort, performance, and sustainability through R&D.
Retail Store Operating Costs
Deckers Outdoor faces various costs in running its retail stores. These expenses include rent, utilities, employee salaries, and maintaining the store's condition. Efficient management of these costs is key to boosting the company's profits. As of March 2024, Deckers operated 164 stores worldwide, encompassing 26 HOKA-branded locations.
- Rent and Utilities: Significant expenses tied to physical store locations.
- Salaries: Costs related to retail staff payroll.
- Store Maintenance: Expenses for upkeep and repairs.
- Global Presence: 164 stores including 26 HOKA in March 2024.
Distribution and Logistics
Deckers Outdoor faces distribution and logistics costs tied to moving its products. These include transportation, storage, and order fulfillment expenses. Effective logistics are key for timely deliveries and cost management. Deckers' distribution teams manage high shipment volumes to wholesale partners. In fiscal year 2024, the company's distribution costs amounted to $393.4 million, reflecting the importance of efficient logistics.
- Distribution costs reached $393.4 million in fiscal year 2024.
- Efficient logistics are crucial for cost control.
- Distribution teams handle substantial shipment volumes.
- Costs cover transportation, warehousing, and fulfillment.
Deckers' cost structure includes COGS, marketing, R&D, retail, and distribution costs. COGS was $1.49B in fiscal year 2023. SG&A expenses, encompassing marketing, reached $428.2M in Q2 2025. R&D spending was $50M in 2024. Distribution costs were $393.4M in 2024.
| Cost Category | Description | Fiscal Year 2024 Data |
|---|---|---|
| COGS | Raw Materials, Manufacturing | $1.49B (FY2023) |
| Marketing | Digital, Social Media, Influencers | $428.2M (Q2 FY2025 SG&A) |
| R&D | Design, Testing, Prototyping | $50M |
| Retail | Rent, Salaries, Maintenance | 164 stores in March 2024 |
| Distribution | Transportation, Storage, Fulfillment | $393.4M |
Revenue Streams
Footwear sales are a cornerstone of Deckers' revenue, primarily fueled by UGG, HOKA, and Teva. These sales encompass various styles, addressing different consumer preferences. Footwear is the primary product for Deckers, generating substantial income. In fiscal year 2024, UGG and HOKA substantially contributed to the company’s total revenue. The net sales for the UGG brand were $2.34 billion.
Deckers Outdoor diversifies revenue through apparel and accessories sales, alongside its footwear. These include clothing, bags, and related items, enriching the brand experience. In 2024, apparel and accessories accounted for a significant portion of overall revenue. This strategy supports a broader lifestyle brand identity. Deckers designs, markets, and distributes apparel for daily casual use and high-performance needs.
Deckers' DTC channel, encompassing e-commerce and retail, is a significant revenue source. These sales boast higher margins, giving Deckers control over the customer journey. DTC sales are a growth engine, boosting profitability and brand loyalty. Deckers' DTC revenue share rose from 35.4% in FY2019 to 43.3% in FY2024, per company reports.
Wholesale Sales
Deckers Outdoor leverages wholesale sales to boost revenue by partnering with various retailers, which widens its customer reach. This strategy provides substantial sales volume, essential for the company's financial performance. Wholesale is a crucial revenue stream, supporting and working with Deckers' direct-to-consumer (DTC) initiatives. In the second quarter of fiscal year 2025, wholesale net sales surged by 20.2%, reaching $913.7 million.
- Wholesale partnerships expand Deckers' market presence.
- Wholesale sales contribute significantly to overall revenue.
- It complements Deckers' DTC strategy.
- Wholesale net sales were $913.7 million in Q2 FY25.
International Sales
Deckers significantly boosts its revenue through international sales, widening its global footprint. These sales are generated via both direct-to-consumer (DTC) and wholesale channels. In the third quarter of fiscal year 2025, international net sales surged by 28.5%, reaching $657.9 million. This expansion is a crucial element in Deckers' growth strategy, contributing substantially to its overall financial performance.
- International sales are a key growth driver for Deckers.
- DTC and wholesale channels are included.
- In Q3 FY2025, international net sales were $657.9 million.
Deckers' revenue streams primarily include footwear, apparel, accessories, and direct-to-consumer (DTC) sales. Wholesale and international sales are also vital for revenue diversification and growth. In fiscal year 2024, UGG net sales were $2.34 billion.
| Revenue Stream | Description | FY24 Data |
|---|---|---|
| Footwear | UGG, HOKA, Teva sales | UGG: $2.34B (Net Sales) |
| Apparel/Accessories | Clothing, bags, etc. | Significant revenue share |
| DTC | E-commerce and retail | 43.3% of revenue in FY24 |
Business Model Canvas Data Sources
The Deckers BMC draws from financial reports, consumer surveys, and competitive analysis. This data ensures each block reflects Deckers' real-world operations and strategy.