Deckers shareholder suggests sale of Hoka One One brand
06/10/2017
Speaking at a conference in San Francisco, Marcato founder Mick McGuire suggested Deckers should sell off pieces of its footwear business, buy back shares, and overhaul executive compensation, Reuters has reported.
Mr McGuire urged the group to focus on its Ugg brand, best known for its double-face sheepskin boots, and sell off “non-core brands” like sandal brand Sanuk and running shoe brand Hoka One One.
Hoka One One has been a star performer in what has been a difficult period for Deckers following a dip in revenue at Ugg. Sales of Hoka One One products have grown at a consistently high pace over the past 18 months and Dave Power, president and CEO of Deckers, has said the group is “just beginning to scratch the surface of the brand’s potential”.
Mr McGuire said that Deckers could significantly increase the return on invested capital by the 2021 fiscal year should it take heed of Marcato’s suggestions.
The investment group, which owns a 6% stake in Deckers, has been putting pressure on the management board of Deckers to pursue a sale. In September, it proposed the complete replacement of the board after growing frustrated that a buyer had not been found.
Marcato has suggested Deckers should explore the sale of Hoka One One (credit: Deckers).
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