Yahoo Finance

• Revenue: Increased 16% year-over-year to $4.986 billion for fiscal year 2025.

• Gross Margin: Expanded 230 basis points to 57.9% for fiscal year 2025.

• Operating Margin: Improved 200 basis points to 23.6% for fiscal year 2025.

• Earnings Per Share (EPS): Increased 30% to $6.33 for fiscal year 2025.

• HOKA Revenue: Grew 24% to $2.2 billion for fiscal year 2025.

• UGG Revenue: Increased 13% to $2.5 billion for fiscal year 2025.

• Cash and Equivalents: $1.9 billion as of March 31, 2025.

• Inventory: $495 million, up 4% year-over-year.

• Share Repurchase: $567 million worth of shares repurchased in fiscal year 2025.

• Fourth Quarter Revenue: $1.02 billion, up 6% year-over-year.

• Fourth Quarter Gross Margin: 56.7%, a 50 basis point increase year-over-year.

• Fourth Quarter EPS: $1, a 22% increase year-over-year.

• Warning! GuruFocus has detected 2 Warning Sign with PLUS.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Deckers Outdoor Corp (NYSE:DECK) reported a record performance for fiscal year 2025, with revenue growing 16% to nearly $5 billion.

• The company achieved a gross margin expansion of 230 basis points to 57.9% and an operating margin improvement of 200 basis points to 23.6%.

• Earnings per share increased by 30% to $6.33, showcasing strong financial performance.

• HOKA brand revenue grew 24% to $2.2 billion, with significant international expansion and increased brand awareness.

• UGG brand revenue increased by 13% to $2.5 billion, driven by strong growth across channels and regions, particularly in international markets.

Negative Points

• The company faces macroeconomic uncertainty related to global trade policy, impacting fiscal year 2026 outlook.

• Deckers Outdoor Corp (NYSE:DECK) anticipates up to $150 million in increased costs due to tariffs, with potential demand erosion.

• HOKA's direct-to-consumer (DTC) growth in the US faced pressure due to model changeovers and macroeconomic factors.

• The company expects a decline in gross margin in fiscal year 2026 due to increased tariffs, higher promotional activity, and unfavorable channel mix.

• Deckers Outdoor Corp (NYSE:DECK) is cautious about consumer spending in the US, which could impact demand and growth projections.

Q & A Highlights

Q: Can you provide more details on the slowdown in HOKA's DTC sales in the US and your confidence in the brand's competitive position? A: Steven Fasching, CFO, explained that the slowdown was isolated to the US DTC channel, with international DTC performing well. The pressure was expected due to expanded wholesale distribution and model changeovers. The company remains confident in HOKA's long-term growth potential, supported by strong international and wholesale performance. CEO Stefano Caroti emphasized the brand's strong foundation and long-term expectations remain unchanged.