Skip to main content

Deckers’ E-Commerce Suffers New Coronavirus Hit

Deckers Brands has closed stores across the country, and now e-commerce is set to take a hit, too.

On March 19, California Governor Gavin Newsom’s stay-home order prompted the footwear giant to close down its Moreno Valley, Calif., distribution center and temporarily limit e-commerce orders and domestic product availability.

A day later, the company said it would have to suspend e-commerce orders for Teva, Sanuk and Koolaburra products as a result of its limited ability to fulfill orders.

Online channels for both Ugg and Hoka One One remain open for business, if in a limited capacity, however.

“E-commerce platforms for Ugg and Hoka One One continue to be available to consumers,” Deckers said in a statement. “However, due to the temporary closure of the Moreno Valley distribution center, domestic product availability may be limited, and shipping times may be delayed until normal warehouse operations resume.”

Impacted employees will continue to receive pay and benefits for a “temporary period” while the company continues to monitor the situation and respond, Deckers said. Customer service teams for the suspended brands will assist consumers remotely.

The Moreno Valley distribution center is one of two facilities fulfilling Deckers’ domestic operations. The other site in Pennsylvania remains active and is currently operated by a third-party logistics provider, according to the company.

Last week, Deckers closed down Ugg stores in North America and Europe, along with a single Sanuk store in Orlando, until March 31. At the time, the company expected to continue its e-commerce operations as a supplement to lost retail sales, adding that it would operate its distribution centers under additional health and safety precautions.

Hoka One One and Deckers’ flagship brand, Ugg, have been consistent performers for the company in recent quarters. Seen as the company’s next $500 million footwear brand, Hoka One One sales were up 63.6 percent in the third quarter, accounting for $93.1 million of the $938.7 million in total sales Deckers Brands generated.

Ugg sales increased by 2.6 percent to $781.1 million in the same period.