Loading...
01/11 03:17
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Revenue $4.986 billion, a 16% increase year-over-year, driven by HOKA's $426 million incremental revenue and UGG's broad-based growth.
Gross Margin 57.9%, up 230 basis points year-over-year, primarily due to favorable brand and product mix shifts and higher full-price selling for UGG.
Operating Margin 23.6%, an increase of 200 basis points year-over-year, reflecting improvements in gross margin.
Earnings Per Share (EPS) $6.33, a 30% increase year-over-year, supported by a lower share count from share repurchase activity and increased interest income.
Fourth Quarter Revenue $1.02 billion, a 6% increase year-over-year, with HOKA and UGG growing 10% and 4% respectively.
Fourth Quarter Gross Margin 56.7%, a 50 basis point increase year-over-year, due to higher full-price selling and favorable brand mix.
Fourth Quarter SG&A $406 million, 39.7% of revenue, down 150 basis points year-over-year, primarily due to favorable foreign currency exchange impacts.
Cash and Equivalents $1.9 billion at year-end, with $567 million in share repurchases during the year.
Inventory $495 million, up 4% year-over-year.
Free Cash Flow Above $900 million for the year.
Share Repurchase $567 million worth of shares repurchased in fiscal year 2025.
HOKA Revenue Growth: Global revenue in fiscal 2025 increased 24% to $2.2 billion, with DTC revenue increasing 23% and international revenue expanding 39%.
HOKA Product Launches: Introduced new models including Bondi 9 and Clifton 10, with positive consumer feedback.
UGG Revenue Growth: Global revenue increased 13% to $2.5 billion, with strong growth in international markets.
UGG New Product Initiatives: Focused on expanding men's product lines and year-round wearability.
HOKA Brand Awareness: Consumer awareness in the US reached 50%, a 25% increase from last year.
International Market Expansion: HOKA's international revenue now represents 34% of total revenue, up from 30% last year.
UGG International Growth: International revenue for UGG expanded 20%, now representing 39% of global sales.
Gross Margin Improvement: Gross margin expanded 230 basis points to 57.9% for fiscal 2025.
Operating Margin Improvement: Operating margin improved 200 basis points to 23.6%.
SG&A Management: SG&A as a percentage of revenue decreased by 150 basis points to 39.7%.
Stock Repurchase Authorization: Increased stock repurchase authorization to $2.5 billion, representing over 10% of market capitalization.
Focus on Brand Building: Continued investment in brand awareness and consumer acquisition strategies.
Adaptation to Market Changes: Plans to flex pricing power and negotiate cost-sharing with factory partners to mitigate tariff impacts.
Macroeconomic Environment: The company anticipates impacts on its business due to macroeconomic uncertainties, particularly related to shifting US trade policy.
Tariff Impacts: There is an expectation of increased costs due to tariffs, which may not be fully offset by mitigation strategies such as selective price increases and cost-sharing with factory partners.
Consumer Demand Erosion: Potential demand erosion is anticipated due to price increases and general softness in consumer spending.
Supply Chain Challenges: The company is closely monitoring changes to tariff policies and evaluating levers to mitigate impacts on its business, including sourcing from Southeast Asia.
Competitive Pressures: The company acknowledges the need to adapt to competitive pressures and changing consumer behavior in a challenging economic environment.
Gross Margin Decline: The company expects a decline in gross margin due to increased tariffs, higher promotional activity, and unfavorable channel mix shifts.
SG&A Expense Ratio: There may be a short-term increase in the SG&A expense ratio to revenue as the company invests in brand awareness and growth initiatives.
Revenue Growth: For fiscal year 2025, Deckers reported a revenue growth of 16% to nearly $5 billion.
Gross Margin: Gross margin expanded by 230 basis points to 57.9%.
Operating Margin: Operating margins improved by 200 basis points to 23.6%.
Earnings Per Share: Earnings per share increased by 30% to $6.33.
Brand Performance: HOKA revenue grew 24% to $2.2 billion, while UGG revenue increased 13% to $2.5 billion.
International Growth: International revenue for HOKA expanded 39%, now representing 34% of global revenue.
DTC and Wholesale Strategy: Aiming for a balanced channel mix of 50/50 DTC and wholesale.
Stock Repurchase: The Board approved an increase of $2.25 billion on top of the existing stock repurchase authorization.
Fiscal Year 2026 Revenue Outlook: For Q1 FY26, revenue is expected to be between $890 million and $910 million.
HOKA Growth Expectation: HOKA is expected to grow at least low double digits.
UGG Growth Expectation: UGG is expected to grow at least mid single digits.
Gross Margin Outlook: Gross margin is expected to decline due to higher freight costs and increased promotional activity.
SG&A Expense Outlook: SG&A is expected to increase slightly faster than revenue.
Earnings Per Share Outlook: Diluted EPS is expected to be in the range of $0.62 to $0.67.
Share Repurchase Program: In fiscal year 2025, Deckers repurchased approximately $567 million worth of shares, with a total of 3.8 million shares repurchased at a weighted average price of $149.21 per share. In the fourth quarter alone, approximately $266 million worth of shares were repurchased at a weighted average price of $149.62 per share. As of May 9, 2025, the company had approximately $291 million remaining under its stock repurchase authorization. The Board of Directors approved an increase of $2.25 billion to the existing stock repurchase authorization, bringing the total to $2.5 billion.
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.
