Deckers Outdoor Corp (NYSE: DECK) delivered record-breaking results for fiscal year 2025, posting a 16% year-over-year increase in revenue, reaching $4.986 billion. Strong brand performance, particularly from HOKA and UGG, propelled the growth.
The company expanded its gross margin by 230 basis points to 57.9% and improved operating margin by 200 basis points to 23.6%. Earnings per share surged 30% to $6.33, reflecting robust financial health.
HOKA revenue climbed 24% to $2.2 billion, driven by international expansion and heightened brand recognition. UGG followed closely with a 13% gain, reaching $2.5 billion, supported by consistent growth across global markets.
Deckers ended the fiscal year with $1.9 billion in cash and equivalents. Inventory levels rose 4% to $495 million. The company repurchased $567 million worth of shares during the year.
In the fourth quarter, revenue rose 6% to $1.02 billion, while gross margin improved by 50 basis points to 56.7%. Quarterly EPS increased 22% to $1.
Despite the strong performance, the company remains cautious heading into fiscal year 2026. Deckers flagged macroeconomic uncertainties and anticipates up to $150 million in additional costs due to tariffs, which could impact gross margins and consumer demand. The company also foresees higher promotional activity and an unfavorable channel mix affecting profitability.
HOKA’s U.S. direct-to-consumer sales faced short-term pressure due to product transitions and broader economic factors. However, CFO Steven Fasching noted that international DTC channels remain strong and reiterated long-term confidence in the brand’s potential. CEO Stefano Caroti emphasized HOKA’s strong global foundation and growth prospects across lifestyle and fitness categories.
To counteract tariff-related cost increases, Deckers is working on price adjustments and collaborating with manufacturing partners to share the burden. The company aims to recover up to 50% of the projected tariff impact.
While Deckers did not issue formal guidance for FY26, leadership remains optimistic about HOKA’s mid-teens growth potential in a normalized economic environment.
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News Source: Finance.yahoo.com
