DECK Deckers Outdoor

• THIRD QUARTER FY 2025 REVENUE INCREASED 17% TO A RECORD $1.83 BILLION
• THIRD QUARTER FY 2025 DILUTED EPS INCREASED 19% TO A RECORD $3.00
• FY 2025 REVENUE GROWTH GUIDANCE RAISED TO APPROXIMATELY 15%
• FY 2025 DILUTED EPS GUIDANCE RAISED TO RANGE OF $5.75-$5.80

Deckers Brands (NYSE: DECK), a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, today announced financial results for the third fiscal quarter ended December 31, 2024. The Company also provided an update to its financial outlook for the full fiscal year ending March 31, 2025.

“Deckers posted exceptional results in the third quarter, delivering record quarterly revenue, gross margin, and earnings,” said Stefano Caroti, President and Chief Executive Officer. “UGG continued to experience incredible global momentum, with the brand’s iconic franchises capturing strong full price consumer demand across all regions. At the same time, HOKA delivered impressive results consistent with our strategy, remaining focused on scaling through innovative performance products. Our increased full-year revenue outlook calls for 15% growth, which would be our fifth consecutive year growing mid-teens or higher, complemented by our commitment to maintain top-tier levels of operating margin.”

Third Quarter Fiscal 2025 Financial Review (Compared to the Same Period Last Year)

• Net sales increased 17.1% to $1.827 billion compared to $1.560 billion. On a constant currency basis, net sales increased 16.6%.
  • Channel
    • Direct-to-Consumer (DTC) net sales increased 17.9% to $1.011 billion compared to $858.1 million. DTC comparable net sales increased 18.3%.
    • Wholesale net sales increased 16.2% to $815.8 million compared to $702.2 million.
  • Geography
    • Domestic net sales increased 11.5% to $1.169 billion compared to $1.048 billion.
    • International net sales increased 28.5% to $657.9 million compared to $511.9 million.
• Gross margin was 60.3% compared to 58.7%.
• Selling, general, and administrative (SG&A) expenses were $535.3 million compared to $428.7 million.
• Operating income was $567.3 million compared to $487.9 million.
• Diluted earnings per share was $3.00 compared to $2.52. As previously disclosed, the Company effected a six-for-one forward stock split of its common stock during the second fiscal quarter. The share, per share, and resulting financial amounts in this press release have been adjusted to reflect the effectiveness of the stock split.

Third Quarter Fiscal 2025 Brand Summary (Compared to the Same Period Last Year)

• UGG® brand net sales increased 16.1% to $1.244 billion compared to $1.072 billion.
• HOKA® brand net sales increased 23.7% to $530.9 million compared to $429.3 million.
• Teva® brand net sales decreased 6.0% to $24.1 million compared to $25.6 million.
• Other brands net sales decreased 16.6% to $28.0 million compared to $33.6 million.

Balance Sheet (December 31, 2024 as compared to December 31, 2023)

• Cash and cash equivalents were $2.241 billion compared to $1.651 billion.
• Inventories were $576.7 million compared to $539.0 million.
• The Company had no outstanding borrowings.

Capital Allocation

During the third fiscal quarter, the Company repurchased approximately 275 thousand shares of its common stock for a total of $44.7 million at a weighted average price paid per share of $162.85. As of December 31, 2024, the Company had approximately $640.7 million remaining under its stock repurchase authorization.

Full Fiscal Year 2025 Outlook for the Twelve Month Period Ending March 31, 2025

The Company’s full fiscal year 2025 outlook is forward-looking in nature, reflecting our expectations as of January 30, 2025, and is subject to significant risks and uncertainties that limit our ability to accurately forecast results. This outlook assumes no meaningful changes to the Company’s business prospects or risks and uncertainties identified by management that could impact future results, which include but are not limited to: foreign currency fluctuations, changes in economic conditions, including consumer confidence, discretionary spending, and inflationary pressures; supply chain disruptions; and geopolitical tensions.

• Net sales are now expected to increase approximately 15% to $4.9 billion.
• Gross margin is now expected to be at or slightly better than 57%.
• SG&A expenses as a percentage of net sales are still expected to be approximately 35%.
• Operating margin is now expected to be approximately 22%.
• Effective tax rate is expected to be approximately 23.5%.
• Diluted earnings per share is now expected to be in the range of $5.75 to $5.80.
• The earnings per share guidance takes into account the effectiveness of the stock split, but does not take into account the impact from any potential future share repurchases.

Non-GAAP Financial Measures

In certain instances the Company may present financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (non-GAAP financial measures), including constant currency, to provide information that may assist investors in understanding its financial results and assessing its prospects for future performance. The Company believes these non-GAAP financial measures are important indicators of its operating performance because they exclude items that are unrelated to, and may not be indicative of, its core operating results.

The non-GAAP financial measures presented by the Company may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to Deckers. For example, in order to calculate constant currency information, the Company calculates the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and remeasurements in the condensed consolidated financial statements. Further, the Company reports DTC comparable net sales on a constant currency basis for DTC operations that were open throughout the current and prior reporting periods, and may adjust prior reporting periods to conform to current year accounting policies. These non-GAAP financial measures are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company utilizes such non-GAAP financial measures in the future, it expects to calculate them using a consistent method from period-to-period.

Conference Call Information

The Company’s conference call to review the results for the third quarter fiscal year 2025 will be broadcast live today, Thursday, January 30, 2025, at 4:30 pm Eastern Time and hosted at ir.deckers.com. You can access the broadcast by clicking on the link within the “Webcast” box at the top of the page. A replay of the broadcast will be available for at least 30 days following the conference call and can be accessed under the “Quarterly Earnings” section of the “Financials” tab at the aforementioned website.

About Deckers Brands

Deckers Brands is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company’s portfolio of brands includes UGG®, HOKA®, Teva®, Koolaburra®, and AHNU®. Deckers Brands products are sold in more than 50 countries and territories through select department and specialty stores, Company-owned and operated retail stores, and select online stores, including Company-owned websites. Deckers Brands has over 50 years of history building niche footwear brands into lifestyle market leaders attracting millions of loyal consumers globally. For more information, please visit www.deckers.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding our projected financial results, including net sales, gross margin, SG&A expenses, operating margin, inventories, effective tax rate, and diluted earnings per share; consumer confidence and discretionary spending; the strength of our brands and demand for our products; our ability to drive future growth and profitability; our ability to execute on our long-term strategies and objectives; and our capital allocation, including the potential repurchase of shares. We have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “estimate,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or “would,” and similar expressions or the negative of these expressions.

Forward-looking statements represent our management’s current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law or the listing rules of the New York Stock Exchange, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.

 

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollar and share data amounts in thousands, except per share data)

 

 

Three Months Ended December 31,

 

Nine Months Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net sales

$

1,827,165

 

 

$

1,560,307

 

 

$

3,963,832

 

 

$

3,328,005

 

Cost of sales

 

724,542

 

 

 

643,738

 

 

 

1,657,937

 

 

 

1,481,993

 

Gross profit

 

1,102,623

 

 

 

916,569

 

 

 

2,305,895

 

 

 

1,846,012

 

Selling, general, and administrative expenses

 

535,349

 

 

 

428,670

 

 

 

1,300,728

 

 

 

1,062,760

 

Income from operations

 

567,274

 

 

 

487,899

 

 

 

1,005,167

 

 

 

783,252

 

Total other income, net

 

(16,668

)

 

 

(11,154

)

 

 

(46,840

)

 

 

(31,482

)

Income before income taxes

 

583,942

 

 

 

499,053

 

 

 

1,052,007

 

 

 

814,734

 

Income tax expense

 

127,208

 

 

 

109,134

 

 

 

237,327

 

 

 

182,716

 

Net income

 

456,734

 

 

 

389,919

 

 

 

814,680

 

 

 

632,018

 

Total other comprehensive (loss) income, net of tax

 

(11,686

)

 

 

7,077

 

 

 

(4,711

)

 

 

(3,339

)

Comprehensive income

$

445,048

 

 

$

396,996

 

 

$

809,969

 

 

$

628,679

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

Basic

$

3.01

 

 

$

2.53

 

 

$

5.35

 

 

$

4.06

 

Diluted

$

3.00

 

 

$

2.52

 

 

$

5.33

 

 

$

4.03

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

Basic

 

151,820

 

 

 

153,985

 

 

 

152,307

 

 

 

155,716

 

Diluted

 

152,386

 

 

 

154,865

 

 

 

152,924

 

 

 

156,670

 

 

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollar amounts in thousands)

 

 

December 31, 2024

 

March 31, 2024

ASSETS

 

 

(AUDITED)

Current assets

 

 

 

Cash and cash equivalents

$

2,240,923

 

$

1,502,051

Trade accounts receivable, net

 

303,079

 

 

296,565

Inventories

 

576,669

 

 

474,311

Other current assets

 

153,441

 

 

170,556

Total current assets

 

3,274,112

 

 

2,443,483

Property and equipment, net

 

323,413

 

 

302,122

Operating lease assets

 

218,876

 

 

225,669

Other noncurrent assets

 

147,952

 

 

164,305

Total assets

$

3,964,353

 

$

3,135,579

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Trade accounts payable

$

586,371

 

$

378,503

Operating lease liabilities

 

46,014

 

 

53,581

Other current liabilities

 

400,497

 

 

287,909

Total current liabilities

 

1,032,882

 

 

719,993

Long-term operating lease liabilities

 

211,015

 

 

213,298

Other long-term liabilities

 

89,537

 

 

94,820

Total long-term liabilities

 

300,552

 

 

308,118

Total stockholders’ equity

 

2,630,919

 

 

2,107,468

Total liabilities and stockholders’ equity

$

3,964,353

 

$

3,135,579

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130744693/en/

Investor Contact: Erinn Kohler | VP, Investor Relations, Corporate Planning & Business Analytics | Deckers Brands | 805.967.7611