Deckers Brands’ sales surged in the third financial quarter ended Dec. 31, 2020, boosted by demand for Ugg and the continued global expansion of Hoka One One. Despite headwinds from Covid-19, the group’s sales progressed by 14.8 percent from the same period last year to a record $1,078 million, with a 13.8 percent rise in constant currencies, as customers switched to e-commerce to buy its products. The group’s net income surged by 26.7 percent to $255.5 million.

Sales soared by 52.1 percent to $141.6 million at Hoka One One, benefiting from efforts to appeal to younger consumers and non-core runners and from a 92 percent gain in direct-to-consumer revenues, whose share of the turnover grew to 30 percent from 21 percent a year earlier. The brand’s online push led to replenishment orders and the acquisition of new customers. Wholesale revenues went up, too, with a growth of 19 percent in the run specialty channel.

For the group’s largest brand, Ugg, sales went up by 12.2 percent to $876.8 million in the quarter. Sanuk dropped by 17.3 percent to $7.0 million, while Teva decreased by 8.7 percent to $15.7 million.

Overall, Deckers wholesale revenues rose by 6.2 percent to $557.9 million, while direct-to-consumer sales jumped by 25.7 percent to $519.9 million.

U.S. sales advanced by 19.3 percent to $770.5 million, while the international business gained 4.8 percent to $307.2 million.

The gross margin was up by 2.9 percentage points to 57.0 percent.

Deckers Brands noted that it still has a robust liquidity position of over $1.1 billion between its cash balance and available borrowings under its credit facilities.

Given the ongoing environment related to the Covid-19 pandemic, the management said it would not be providing full-year guidance. It anticipates operational challenges related to capacity constraints in the supply chain and increased costs associated with warehouse employees’ safety and payroll expenses.