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Deckers Brands Reports Robust Financial Results for Q2 FY 2025

authorIntellectia.AI

2024-10-253mins

Deckers Brands Reports Robust Financial Results for Q2 FY 2025

Deckers Brands (NYSE: DECK), a global innovator in the footwear, apparel, and accessories sectors, has announced its financial outcomes for the second fiscal quarter ending September 30, 2024.

Consolidated Financial Metrics

Metric Q2 FY 2025 Q2 FY 2024 Year-over-Year Change Wall Street Consensus Estimates
Total Revenue $1.31 billion $1.092 billion +20% $1.2 billion
Earnings Per Share (EPS) $1.59 $1.14 +39% $1.24

Deckers Brands outperformed consensus estimates with a significant 20% increase in revenue and a 39% increase in diluted EPS for the quarter. The growth in sales was driven both by the strong consumer demand for their leading brands and an improvement in gross margin to 55.9%.

Revenue by Segments

Segment Q2 FY 2025 Revenue Q2 FY 2024 Revenue Year-over-Year Change
Direct-to-Consumer $397.7 million $331.7 million +19.9%
Wholesale $913.7 million $760.2 million +20.2%
Domestic $853.9 million $748 million +14.2%
International $457.4 million $343.9 million +33.0%

The company benefitted from rising demand across both its Direct-to-Consumer and Wholesale channels, as well as strong growth in international markets that surged 33% year-over-year, underpinning its robust global strategy.

Brand Performance

Brand Q2 FY 2025 Revenue Q2 FY 2024 Revenue Year-over-Year Change
HOKA $570.9 million $424 million +34.7%
UGG $689.9 million $610.5 million +13.0%
Teva $22.0 million $21.5 million +2.3%
Sanuk* $2.8 million $5.4 million -47.6%
Other Brands $25.8 million $30.6 million -15.8%

The standout performance came from the HOKA brand, which posted a remarkable 34.7% revenue growth.

Key Developments and Operational Highlights

  • Stock Split : Successfully implemented a six-for-one stock split in September 2024.
  • Stock Repurchase : Deckers repurchased approximately 686,000 shares, costing $104.3 million during the quarter.
  • Strong Balance Sheet : The company retains robust financial health with $1.226 billion in cash and no debt.

CEO Commentary

Stefano Caroti, President and CEO, highlighted the success of HOKA and UGG brands in the second quarter, emphasizing the consumer-centric approach and innovation-led products that fuel growth. He expressed commitment to building on foundational strengths to harness future opportunities.

Capital Strategy

Deckers continues to pursue a robust stock repurchase plan with $685.4 million remaining under authorization, signaling confidence in long-term strategies.

Outlook and Dividend Information

The company raised its full-year FY 2025 revenue guidance to approximately $4.8 billion, with EPS guidance adjusted to a range between $5.15 and $5.25. The fiscal projection reflects the company’s strategic positioning and ongoing strength.

Stock Movement

Following the earnings release, Deckers' stock price saw an uplift of 8.81%, underscoring investor confidence in the firm’s trajectory.

Overall, Deckers Brands has showcased a solid financial quarter, surpassing consensus expectations and setting a robust forward-looking strategy, especially as it leverages the successes of its brand offerings amidst dynamic market conditions.

For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.

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