How to update the theme?

I have a notice showing in my CMS:

There is a new version of SOHO available. To update the theme, please follow this link Download Update.
Do you want to get notifications about theme updates? Yes | No

But when I download the theme via the download link and try to install it I get the following message:

Unpacking the package…
Installing the theme…
Destination folder already exists. /public/sites/
Theme install failed.

How should I update the theme? Is the only possible approach to first uninstall it and then reinstall it?

Thanks in advance.

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