Deckers Brands Q2 Fiscal 2025 Earnings Highlights

Deckers Brands (NYSE: DECK) announced strong financial performance in its Second Quarter Fiscal 2025 Earnings Conference Call, with CEO Stefano Caroti and CFO Steve Fasching reporting a 20% year-over-year revenue increase to $1.3 billion. The company's gross margins stood at 55.9%, and diluted earnings per share rose by 39% to $1.59.

Key Performance Metrics

• Revenue Growth: 20% year-over-year to $1.3 billion
• Gross Margins: 55.9%
• Diluted Earnings Per Share: Increased by 39% to $1.59

Brand Highlights

• HOKA: Surpassed $2 billion in trailing 12-month revenue, with a 32% increase in the first half of the fiscal year.
• UGG: Reported a 13% revenue increase, benefiting from successful product initiatives and international growth.

Financial Guidance

• Raised fiscal 2025 revenue guidance to approximately $4.8 billion.
• HOKA projected to grow by 24%, while UGG expected to grow by mid-single digits.

Company Outlook

• Anticipates strong demand heading into the holiday season.
• Balanced growth strategy across direct-to-consumer (DTC) and wholesale channels.

Challenges and Opportunities

• Bearish Highlights: Managing gross margin pressures due to increased freight costs and anticipated moderated growth for UGG.
• Bullish Highlights: Strong international growth, particularly in Europe and Asia-Pacific, with a positive brand presence in China.

Market Position

• Recognized as one of America’s greenest companies by Newsweek for the third consecutive year.
• Increased focus on demand creation spending for HOKA and UGG marketing efforts.

Conclusion

Deckers Brands reported impressive Q2 results demonstrating effective management of international growth, supply chain complexities, and consumer demand. With confident guidance and strong brand performance, Deckers remains positioned for further success.

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