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.
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