Loading...
01/11 03:21
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with a 9% revenue increase and a 14% EPS growth, driven by HOKA and UGG brands. Despite tariff pressures, gross margins improved. Share repurchases indicate confidence in stock value. Positive guidance for HOKA and UGG, along with strategic inventory management and balanced DTC and wholesale growth, suggests a favorable outlook. While tariffs and consumer demand fluctuations pose challenges, the company's proactive measures and strong brand positioning support a positive sentiment, likely resulting in a 2% to 8% stock price increase over the next two weeks.
Second Quarter Revenue $1.43 billion, representing an increase of 9% versus the prior year. Growth driven by HOKA and UGG brands, which increased 11% and 10% respectively.
HOKA Revenue (First Half) Increased by 15% versus last year. Growth driven by consumer-led updates to key franchises and international market expansion.
UGG Revenue (First Half) Increased by 12% versus last year. Growth driven by wholesale demand and earlier shipments.
Diluted Earnings Per Share (Second Quarter) $1.82, representing a 14% increase compared to $1.59 last year. Growth attributed to better-than-expected gross margin and pricing actions.
Gross Margin (Second Quarter) 56.2%, up 30 basis points from last year's 55.9%. Growth driven by price increases, favorable product mix, and foreign currency exchange rates.
International Revenue Growth (First Half) Increased by 38% year-over-year, driven by wholesale channel growth and brand-building marketing investments.
Inventory $836 million, up 7% versus the same point last year. Increase attributed to strategic inventory management.
HOKA product updates: Consumer-led updates to the brand's 3 largest road running franchises: Clifton, Bondi, and Arahi. Expansion and evolution of the Mafate franchise. Introduction of the Mach 7 and Mach Remastered for spring '26.
UGG product updates: Launch of new products like the Zora Ballet Flat and Classic Micro. Men's footwear growth at twice the rate of the overall brand.
International expansion: HOKA and UGG international revenue grew 38% YoY. HOKA gained market share in Europe and China, with new store openings and strong consumer demand.
U.S. market dynamics: U.S. consumer sentiment under pressure, but HOKA and UGG are positioned for long-term success. Wholesale sell-through increased double digits.
Revenue growth: Total company revenue grew 12% in the first half of fiscal 2026. HOKA revenue increased by 15%, and UGG revenue rose by 12%.
Profitability: Diluted earnings per share grew by 17% in the first half. Gross margin for Q2 was 56.2%, up 30 basis points YoY.
Channel strategy: Focus on achieving a balance of 50% between direct-to-consumer and wholesale channels. Investments in marketing to build global brand awareness.
Brand positioning: HOKA positioned as a global performance brand. UGG focused on product evolution and maintaining cultural relevance.
Macroeconomic Environment: The U.S. consumer sentiment remains under pressure, which could impact demand for the company's products. Additionally, the macroeconomic environment is challenging, with shifts in consumer preferences towards multi-brand in-store shopping experiences.
Tariffs and Trade Policy: The company faces significant headwinds from increased tariffs, with an estimated unmitigated impact of $150 million for fiscal year 2026. Although mitigation efforts are in place, these tariffs could still adversely affect profitability.
Direct-to-Consumer (DTC) Business: The DTC segment has experienced a decline, particularly for the UGG brand, due to better in-stock positions with wholesale partners and shifts in consumer shopping habits. This could impact the company's ability to maintain a balanced revenue mix.
Supply Chain and Inventory Management: Earlier shipments and inventory management strategies have created pressures, particularly in the UGG brand's DTC business. Additionally, the company is transitioning to a third-party warehouse in Europe, which could pose operational risks.
Foreign Currency Exchange Rates: Fluctuations in foreign currency exchange rates remain a risk, potentially impacting revenue and profitability.
Geopolitical and Global Trade Risks: The company acknowledges risks from geopolitical tensions and global trade uncertainties, which could disrupt operations and supply chains.
Consumer Behavior and Pricing: Changes in consumer behavior, including responses to price increases, could impact demand. The company is also navigating a dynamic consumer environment with heightened preferences for multi-brand shopping experiences.
Revenue Guidance: Total company revenue for fiscal 2026 is expected to be approximately $5.35 billion, with HOKA increasing by a low teens percentage and UGG growing in the range of a low to mid-single-digit percentage.
Gross Margin: Gross margin is projected to be approximately 56%, with anticipated headwinds from tariffs in the second half of the fiscal year, partially offset by mitigation strategies and normalized promotional levels.
SG&A Expenses: SG&A expenses are expected to be approximately 34.5% of revenue, reflecting investments in long-term brand opportunities.
Operating Margin: Operating margin is projected to be approximately 21.5%, maintaining a top-tier profitability level relative to peers.
Earnings Per Share (EPS): Earnings per share for fiscal 2026 are expected to range between $6.30 and $6.39.
International vs. U.S. Growth: International growth is expected to outpace U.S. growth, with global wholesale growth outpacing direct-to-consumer (DTC) growth for fiscal 2026.
Tariff Impact: The unmitigated tariff impact on fiscal 2026 is estimated at approximately $150 million, with mitigation efforts expected to offset $75 million to $95 million of this pressure.
HOKA Brand Projections: HOKA is expected to continue gaining market share globally, with a focus on driving healthy sell-through, leveraging the DTC loyalty program, and preparing for product updates in spring 2026.
UGG Brand Projections: UGG is expected to maintain strong demand globally, with a focus on new product launches, cohesive brand stories, and marketing campaigns to drive consumer engagement.
dividends: No specific mention of dividends or a dividend program was made in the transcript.
share repurchase: The company repurchased approximately $282 million worth of shares at an average price of $109.31 during the second quarter. As of September 30, 2025, the company had approximately $2.2 billion remaining authorized for share repurchases.
The earnings call reveals strong financial performance with a 9% revenue increase and a 14% EPS growth, driven by HOKA and UGG brands. Despite tariff pressures, gross margins improved. Share repurchases indicate confidence in stock value. Positive guidance for HOKA and UGG, along with strategic inventory management and balanced DTC and wholesale growth, suggests a favorable outlook. While tariffs and consumer demand fluctuations pose challenges, the company's proactive measures and strong brand positioning support a positive sentiment, likely resulting in a 2% to 8% stock price increase over the next two weeks.
The earnings call reveals a mixed outlook. Positive aspects include strong revenue growth, brand initiatives, and stock repurchase plans. However, the lack of formal guidance, expected margin decline, and increased costs due to tariffs temper enthusiasm. The Q&A section highlights innovation and international growth, but concerns about tariffs and promotional activity impact sentiment. Overall, the balanced positive and negative factors suggest a neutral short-term stock price movement.
The earnings call reveals strong financial performance with a 16% revenue increase and a 30% EPS increase, supported by strategic share repurchases. Despite some concerns about tariffs and economic conditions, the company maintains optimistic growth expectations for its brands, particularly HOKA. The substantial increase in share repurchase authorization further boosts investor confidence. However, management's lack of clarity on specific growth expectations and the impact of tariffs tempers the sentiment slightly. Overall, the positive financial metrics and shareholder return plans outweigh the concerns, suggesting a positive stock price movement.
The earnings call reveals strong financial performance with 16% revenue growth, improved margins, and a 30% EPS increase. The shareholder return plan is robust with a significant share repurchase program. Despite some U.S. DTC pressure and tariff concerns, international growth and wholesale expansion are promising. Positive guidance and strategic initiatives like product launches and a balanced DTC-wholesale strategy further support a positive sentiment. The market is likely to react positively, especially with optimistic future revenue guidance.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
