Deckers Outdoor Corporation
TypePublic
NYSE: DECK
S&P 400 Component
Founded1973 (1973)
FounderDoug Otto
Karl F. Lopker
Headquarters
34°25′47″N 119°51′43″W / 34.4296°N 119.86202°W / 34.4296; -119.86202
Number of locations
164 (2023)[1]
Area served
Worldwide
Key people
Michael Devine III,
Chairman
Dave Powers,
CEO
ProductsFootwear, apparel, and accessories
RevenueIncrease US$3.63 billion (2023)
Increase US$652.8 million (2023)
Increase US$516.8 million (2023)
Total assetsIncrease US$2.56 billion (2023)
Number of employees
c. 4,200 (2023)
Subsidiaries
Websitedeckers.com

Deckers Outdoor Corporation, doing business as Deckers Brands, is a footwear designer and distributor based in Goleta, California, United States. It was founded in 1973 by University of California, Santa Barbara alumni Doug Otto and Karl F. Lopker.[2][3][4] In 1975, the company was incorporated in California under the name Deckers Corporation. In October 1993, Deckers initiated a public offering of stock in its company. Deckers' portfolio of brands includes UGG, Teva, Sanuk, Hoka One One and Koolaburra.[1]

History

In 1973, Karl Lopker began his career making and selling flip-flops at craft fairs along the West Coast of the United States. In 1975, Doug Otto visited Hawaii on business and found that locals referred to his sandals as "deckas", a slang word based on their striped layered construction that resembled a "deck" of stacked wood. Liking the name, Lopker and Otto named their brand Deckers.[5]

In 1985, Deckers expanded its range of sandals when it entered into a licensing agreement to produce and distribute Teva sandals. Deckers purchased Teva's patents, trademarks, and other assets in 2002.[6]

The company was renamed Deckers Outdoor Corporation when it went public on the NASDAQ in 1993, and Deckers purchased Simple Shoes.

In 1995, Deckers purchased UGG Holdings. UGG boots became well known after they were included on The Oprah Winfrey Show's Favorite Things segment in 2003.

In 2010, Deckers acquired MOZO Shoes, a brand that produced footwear for the culinary industry. The following year, Deckers acquired Sanuk shoes.[7] In 2013, Deckers acquired Hoka One One.[8] In 2015, Deckers acquired Koolaburra and positioned it under its UGG brand.[9]

Brands

UGG

A pair of UGG boots

UGG brand boots have a sheepskin upper with a wool inner lining and a tanned outer surface worn by men and women. Surfing helped popularize the boots outside of Australia and New Zealand, when surfer Brian Smith started selling the boots in the US through UGG Holdings, Inc. in 1979.[10]

Deckers is considered a niche market supplier due to heavy reliance on its UGG brand, a fashion luxury item, in its sales.[1] In the economic downturn of 2008, Deckers continued to show earnings and sales growth.[11] UGG boots are Deckers' primary source of revenue.[1]

Teva

Teva
Founded1984 (1984)
FounderMark Thatcher
ProductsFootwear and accessories
ParentDeckers Brands
Websiteteva.com

Geophysicist Mark Thatcher invented Teva (Hebrew: טבע, pronounced "teh-vah" not "tee-vah," Hebrew for "nature"[12]). While working as a rafting guide in 1982 he noticed the lack of proper shoes for river activities. Sneakers would become heavy when wet and would take days to dry, and flip-flops would slide off feet very easily.

A pair of Teva sandals

Thatcher added a nylon ankle strap to a traditional thong-style sandal, thus creating the first sports sandal. Thatcher patented his invention and signed an agreement with the shoemaker California Pacific to manufacture the shoes, while he marketed the "amphibious utility sandals" as their salesman, selling 200 pairs the first year. Although it was effective water sports footwear, it proved less effective for regular sports, as the first Teva users often complained of blisters between the first and second toes caused by the thong-style strapping system. However, in 1984 a sudden high demand of Teva sandals arose as young Americans found the sandal fashionable. California Pacific then claimed rights over the Teva name and patent, stating that Thatcher was merely an employee of their company. Thatcher sued California Pacific and won his case the following year, severing links with California Pacific. He then started the Teva company in Flagstaff, Arizona.[13]

In late 1985, Thatcher set up an exclusive licensing agreement with Deckers Corporation to manufacture and distribute Teva sandals. Deckers eventually obtained exclusive rights to Teva, including US patent #4,793,075 for the basic design and a trademark for the brand name. The sandal was redesigned, creating the "Universal Strapping System". The strapping system includes a heel strap that goes around the ankle to prevent the sandal from sliding off, and a side strap that prevents the sandal from stretching in awkward positions where injury could occur. Each strap is connected to the others by triangular "rings". The basic model consists of a two-layer sole; the inner sole is softer and serves as the footbed, and most models come with arch support and Microban Zinc, a technology that reduces odor and kills bacteria. The outer sole is harder and is formulated to have a good grip on wet surfaces.

On November 25, 2002, Deckers Outdoor Cooperation acquired the worldwide Teva patents, trademarks, and other assets from Mark Thatcher.[6]

Sanuk

Sanuk, a sandal brand based in Southern California, was founded in 1997 and acquired by Deckers in 2011 for $120 million.[14] "Sanuk" is the Thai word for fun.[15] Founder Jeff Kelley, a Southern California native, started by making sandals out of indoor-outdoor carpet and inner tubes.[16] In 2010, Sanuk's "Yoga Mat Sandal" was awarded SIMA's "Footwear Product of the Year".[17]

References

  1. 1 2 3 4 "Form 10-K" (PDF). Deckers Brands. May 26, 2023. Retrieved October 3, 2023.
  2. ↑ Leff, Lisa (February 16, 1997). "Money, Fame And Family". The Los Angeles Times. Retrieved October 14, 2014.
  3. ↑ Stewart, Ethan (December 8, 2011). "Diamonds on the Soles of Their Shoes". The Independent. Archived from the original on October 21, 2014. Retrieved October 14, 2014.
  4. ↑ Olsen, Patricia R. (January 23, 2010). "The Joy of a Family Shop". The New York Times. Retrieved October 14, 2014.
  5. ↑ "Company History". Deckers Outdoor Corporation. Retrieved April 14, 2014.
  6. 1 2 "Deckers Outdoor Corporation Form 8-K/A". U.S. Securities and Exchange Commission. Retrieved May 21, 2023.
  7. ↑ "Deckers Outdoor to Acquire Sanuk; Valuation Set at More than 3X Sales | SGB Media Online". sgbonline.com. May 23, 2011. Retrieved June 24, 2020.
  8. ↑ "Deckers Acquires Hoka One One Shoes". Runner's World. April 2, 2013. Retrieved June 24, 2020.
  9. ↑ Ahssen, Sarah (June 1, 2015). "Deckers strengthens brand portfolio with Koolaburra". Fashion Network. Retrieved June 24, 2020.
  10. ↑ Marks, Kathy (February 17, 2004). "There's no business like shoe business". The Independent. London, United Kingdom. Archived from the original on December 5, 2008. Retrieved November 17, 2009.
  11. ↑ "Will Triple-Digit Earnings Growth Push Deckers Outdoor into Higher Ground? - Investors.com". Archived from the original on October 18, 2014. Retrieved October 10, 2014.
  12. ↑ "Teva History". Deckers. Archived from the original on March 12, 2011.
  13. ↑ "Inventor of the Week: Archive". MIT. August 1998. Archived from the original on March 2, 2003. Retrieved March 28, 2007.
  14. ↑ "Sanuk founder on sandals success and growing your business". San Diego Union-Tribune. September 12, 2011. Retrieved November 10, 2021.
  15. ↑ "Thai Culture in Language". thaiarc.tu.ac.th. Retrieved September 16, 2020.
  16. ↑ "Happy Pursuits: Sanuk In Manila". INQUIRER.net. Archived from the original on January 2, 2014. Retrieved April 14, 2014.
  17. ↑ "SIMA Image Awards". April 2, 2016. Archived from the original on April 2, 2016. Retrieved October 25, 2022.
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