Deckers Q1 2025 Earnings Report
Key Takeaways
Deckers Brands reported a strong start to fiscal year 2025, with revenue increasing by 22% to $825 million and diluted EPS increasing by 87% to $4.52. The company has raised its full-year diluted EPS guidance to a range of $29.75-$30.65.
Net sales increased by 22.1% to $825.3 million.
Direct-to-Consumer (DTC) net sales increased 24.0% to $310.6 million.
HOKA brand net sales increased 29.7% to $545.2 million.
UGG brand net sales increased 14.0% to $223.0 million.
Deckers
Deckers
Deckers Revenue by Segment
Forward Guidance
The Company’s full fiscal year 2025 outlook is forward-looking in nature and net sales are still expected to increase approximately 10% to $4.7 billion and diluted earnings per share is now expected to be in the range of $29.75 to $30.65.
Positive Outlook
- Net sales are still expected to increase approximately 10% to $4.7 billion.
- Gross margin is now expected to be approximately 54%.
- Operating margin is now expected to be in the range of 19.5% to 20%.
- Effective tax rate is still expected to be in the range of 22% to 23%.
- Diluted earnings per share is now expected to be in the range of $29.75 to $30.65.
Challenges Ahead
- Changes in economic conditions, including consumer confidence, discretionary spending, inflationary pressures, and foreign currency fluctuations
- Supply chain disruptions
- Geopolitical tensions
- SG&A expenses as a percentage of net sales are now expected to be in the range of 34% to 34.5%.
- The earnings per share guidance does not take into account the impact from any potential future share repurchases or the proposed six-for-one forward stock split
Revenue & Expenses
Visualization of income flow from segment revenue to net income