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Jun 30, 2024
Deckers Q1 2025 Earnings Report
Deckers' first quarter of fiscal year 2025 witnessed revenue growth, driven by strong performances from HOKA and UGG brands, resulting in increased diluted EPS and raised full-year EPS guidance.
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
Deckers Revenue by Geographic Location
Revenue by Segment
HOKA Brand Revenue
CapyFin.comUGG Brand Revenue
CapyFin.comOther Brands Revenue
CapyFin.comRevenue by Geographic Location
Domestic Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.com 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