Deckers Outdoor Corporation (NYSE: DECK) Q4 2025 Earnings Call | 05/23/2025

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Deckers Outdoor Corporation (NYSE: DECK) reported its Q4 and full-year fiscal 2025 results on May 23, 2025, delivering record-setting performance driven by the continued momentum of its HOKA and UGG brands. For the fourth quarter ended March 31, 2025, net sales rose 6.5% year-over-year to $1.02 billion, with HOKA brand sales up 10% to $586.1 million and UGG brand sales up 3.6% to $374.3 million. Quarterly gross margin improved to 56.7%, a 50 basis point increase from the prior year, while diluted earnings per share (EPS) climbed 22% to $1.00, surpassing analyst expectations. Net income for the quarter was $151.4 million, up 18.7% from $127.5 million in Q4 2024. For the full fiscal year 2025, Deckers achieved a 16% revenue increase to a record $4.99 billion, with HOKA revenue surging 24% to $2.23 billion and UGG revenue growing 13% to $2.53 billion. Gross margin expanded 230 basis points to 57.9%, and operating margin improved 200 basis points to 23.6%. Full-year diluted EPS jumped 30% to a record $6.33. The company ended the year with $1.9 billion in cash and equivalents, inventory of $495 million (up 4% year-over-year), and no outstanding borrowings. Deckers repurchased $567 million in shares during fiscal 2025, including $266 million in Q4, and expanded its share repurchase authorization to $2.5 billion. Despite these strong results, Deckers faces macroeconomic headwinds, including global trade policy uncertainty and potential tariff increases that could add up to $150 million in costs for fiscal 2026. Management remains optimistic about the long-term growth prospects for HOKA and UGG, emphasizing their industry leadership and global brand strength. However, the company is not providing formal fiscal 2026 guidance due to tariff and market uncertainties, though it continues to target double-digit growth for HOKA and mid-single-digit growth for UGG in the absence of significant trade disruptions. Outlook: Management expects ongoing momentum for HOKA and UGG, but is monitoring tariff impacts and global trade developments closely. Focus remains on brand innovation, international expansion, and operational efficiency to sustain long-term growth. Share repurchase program expanded to $2.5 billion, supporting shareholder returns. About Inside Ticker: For more expert analysis and real-time updates on Deckers Outdoor Corporation (NYSE: DECK) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Deckers #DECK #EarningsCall #Q42025 #HOKA #UGG #Footwear #RevenueGrowth #FinancialResults #StockMarket #InsideTicker