Deckers Brands Announces Fourth Quarter And Full Fiscal Year 2025 Financial Earnings Results

Deckers Outdoor Corporation (DECK) today announced its financial results for the recent quarter, showcasing a remarkable performance that exceeded expectations. The company reported earnings per share of $1,000, significantly surpassing the estimated $0.60, marking a substantial beat. Additionally, Deckers achieved revenue of $1.02 billion, outpacing the forecasted $1.01 billion, further highlighting its strong market position and operational efficiency.

Key Highlights:

• FY 2025 revenue increased 16% to a record $4.99 billion.
• FY 2025 diluted EPS increased 30% to a record $6.33.
• HOKA brand revenue grew by 24%, while UGG brand revenue grew by 13%.
• The company repurchased approximately 3.800 million shares for a total of $567.0 million during FY 2025.
• First quarter FY 2026 net sales are expected to be between $890 million and $910 million.

Summary: Deckers Brands reported impressive financial results for the fourth quarter and full fiscal year 2025, achieving a record revenue of $4.99 billion, which represents a 16% increase from the previous year. The company experienced notable growth in its HOKA and UGG brands, with revenue increases of 24% and 13%, respectively. CEO Stefano Caroti expressed optimism about the company’s future, stating, “While the global trade environment has introduced greater near-term uncertainty, we are very confident in the exciting opportunities ahead for HOKA and UGG.”

Looking forward, Deckers Brands provided a positive outlook for the first quarter of fiscal year 2026, projecting net sales between $890 million and $910 million. CFO Steve Fasching highlighted the company’s strong financial position, with $1.9 billion in cash on hand, and emphasized their commitment to navigating near-term uncertainties while investing in long-term growth opportunities. The company also announced an increase in its share repurchase authorization to $2.5 billion, reflecting confidence in its growth prospects and commitment to shareholder returns.

Deckers Outdoor Corporation (DECK) has experienced a rollercoaster ride in its stock price, with a notable decline of 32.19% over the past six months, reflecting broader market volatility and potential investor concerns. However, the company has shown resilience with a one-month price increase of 19.13%, suggesting a rebound in investor sentiment. Fundamentally, Deckers boasts a solid price-to-earnings ratio of 20.50, indicating that investors are willing to pay a premium for its earnings potential. The impressive two-year compound annual growth rate (CAGR) of 41.54% in earnings per share highlights the company’s robust profitability trajectory. Additionally, a free cash flow CAGR of 67.66% underscores its strong cash generation capabilities, which is crucial for funding future growth initiatives. With a net profit margin of 17.69% and a return on invested capital of 1.06, Deckers demonstrates effective cost management and efficient use of capital. As the company navigates the challenges of the market, its strong fundamentals may provide a solid foundation for future growth and recovery in its stock price. Investors will be keen to see if this recent uptick can be sustained in the coming months.

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. The company offers premium footwear, apparel, and accessories under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and relaxed casual shoes and sandals under the Sanuk brand name. It also provides footwear and apparel for ultra-runners and athletes under the Hoka brand name; and fashion casual footwear using other plush materials under the Koolaburra brand. The company sells its products through department stores, domestic independent action sports and outdoor specialty footwear retailers, and larger national retail chains, as well as online retailers. It also sells its products directly to consumers through its retail stores and e-commerce websites, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia-Pacific, Canada, Latin America, and internationally. As of March 31, 2022, it had 149 retail stores, including 75 concept stores and 74 outlet stores worldwide. The company was founded in 1973 and is headquartered in Goleta, California.