Deckers Brands Reports First Quarter Fiscal Year 2025 Financial Results
Deckers Brands (NYSE: DECK) reported strong Q1 FY 2025 results, with revenue increasing 22.1% to $825.3 million and diluted EPS rising 87% to $4.52. The company raised its FY 2025 diluted EPS guidance to $29.75-$30.65. HOKA and UGG brands drove robust full-price demand, with HOKA sales up 29.7% and UGG sales up 14%. Direct-to-Consumer net sales grew 24%, while wholesale increased 21%. Gross margin improved to 56.9% from 51.3%. The company repurchased 177,000 shares for $152 million and announced plans to divest the Sanuk brand in August 2024. Deckers' strong performance and increased outlook reflect its successful brand strategy and market position.
Deckers Brands (NYSE: DECK) ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con un aumento del fatturato del 22,1% a 825,3 milioni di dollari e un EPS diluito in crescita dell'87% a 4,52 dollari. L'azienda ha alzato le previsioni di EPS diluito per l'anno fiscale 2025 a 29,75-30,65 dollari. I marchi HOKA e UGG hanno guidato una robusta domanda a prezzo pieno, con le vendite di HOKA in aumento del 29,7% e quelle di UGG in crescita del 14%. Le vendite nette dirette al consumatore sono aumentate del 24%, mentre le vendite all'ingrosso sono cresciute del 21%. Il margine lordo è migliorato al 56,9% rispetto al 51,3%. L'azienda ha riacquistato 177.000 azioni per 152 milioni di dollari e ha annunciato piani per cedere il marchio Sanuk nell'agosto 2024. La forte performance di Deckers e la previsione migliorata riflettono la sua strategia di marca di successo e la posizione di mercato.
Deckers Brands (NYSE: DECK) reportó resultados sólidos para el primer trimestre del año fiscal 2025, con un aumento del 22,1% en los ingresos, alcanzando los 825,3 millones de dólares, y un EPS diluido que creció un 87%, alcanzando los 4,52 dólares. La compañía elevó su guía de EPS diluido para el año fiscal 2025 a 29,75-30,65 dólares. Las marcas HOKA y UGG impulsaron una sólida demanda a precio completo, con ventas de HOKA aumentando un 29,7% y ventas de UGG creciendo un 14%. Las ventas netas directas al consumidor crecieron un 24%, mientras que las ventas al por mayor aumentaron un 21%. El margen bruto mejoró al 56,9% desde el 51,3%. La compañía recompró 177,000 acciones por 152 millones de dólares y anunció planes para desinvertir la marca Sanuk en agosto de 2024. El sólido desempeño de Deckers y la perspectiva mejorada reflejan su exitosa estrategia de marca y posición en el mercado.
Deckers Brands (NYSE: DECK)는 2025 회계연도 1분기 강력한 실적을 보고했으며, 매출은 22.1% 증가하여 8억 2,530만 달러에 달하고, 희석된 EPS는 87% 증가하여 4.52달러에 이르렀습니다. 회사는 2025 회계연도의 희석된 EPS 전망을 29.75-30.65달러로 상향 조정했습니다. HOKA와 UGG 브랜드는 강력한 정가 판매 수요를 주도하며, HOKA의 판매는 29.7% 증가하고 UGG의 판매는 14% 증가했습니다. 소비자 직접 판매 순매출은 24% 성장했으며, 도매 매출은 21% 증가했습니다. 총마진은 51.3%에서 56.9%로 개선되었습니다. 회사는 177,000주를 1억 5,200만 달러에 재매입했으며, 2024년 8월에 Sanuk 브랜드를 매각할 계획을 발표했습니다. Deckers의 강력한 성과와 향상된 전망은 성공적인 브랜드 전략과 시장 위치를 반영합니다.
Deckers Brands (NYSE: DECK) a annoncé de solides résultats pour le premier trimestre de l'exercice 2025, avec des revenus en hausse de 22,1 % à 825,3 millions de dollars et un BPA dilué en hausse de 87 % à 4,52 dollars. L'entreprise a revu à la hausse ses prévisions de BPA dilué pour l'exercice 2025 à 29,75-30,65 dollars. Les marques HOKA et UGG ont stimulé une demande forte au prix plein, avec des ventes de HOKA en hausse de 29,7 % et des ventes de UGG en hausse de 14 %. Les ventes nettes directes aux consommateurs ont augmenté de 24 %, tandis que les ventes en gros ont augmenté de 21 %. La marge brute s'est améliorée à 56,9 %, contre 51,3 %. L'entreprise a racheté 177 000 actions pour 152 millions de dollars et a annoncé son intention de céder la marque Sanuk en août 2024. La forte performance de Deckers et ses perspectives améliorées reflètent sa stratégie de marque réussie et sa position sur le marché.
Deckers Brands (NYSE: DECK) meldete starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025, mit einem Umsatzanstieg von 22,1% auf 825,3 Millionen Dollar und einem verwässerten EPS-Anstieg um 87% auf 4,52 Dollar. Das Unternehmen hob seine Prognose für das verwässerte EPS im Geschäftsjahr 2025 auf 29,75-30,65 Dollar an. Die Marken HOKA und UGG verzeichneten eine starke Nachfrage zum Vollpreis, wobei die HOKA-Verkäufe um 29,7% und die UGG-Verkäufe um 14% stiegen. Die Nettoumsätze im Direct-to-Consumer-Geschäft wuchsen um 24%, während der Großhandel um 21% zunahm. Die Bruttomarge verbesserte sich von 51,3% auf 56,9%. Das Unternehmen kaufte 177.000 Aktien für 152 Millionen Dollar zurück und gab bekannt, dass es die Marke Sanuk im August 2024 veräußern wird. Die starke Leistung von Deckers und die verbesserte Ausblick spiegeln die erfolgreiche Markenstrategie und Marktposition wider.
- Revenue increased 22.1% to $825.3 million in Q1 FY 2025
- Diluted EPS rose 87% to $4.52
- FY 2025 diluted EPS guidance raised to $29.75-$30.65
- HOKA brand net sales increased 29.7% to $545.2 million
- UGG brand net sales grew 14% to $223 million
- Gross margin improved to 56.9% from 51.3%
- DTC net sales increased 24% to $310.6 million
- Wholesale net sales grew 21% to $514.8 million
- Cash and cash equivalents increased to $1.438 billion from $1.047 billion YoY
- Teva brand net sales decreased 4.3% to $46.3 million
- Sanuk brand net sales declined 28.4% to $6.9 million
- Inventories increased slightly to $753.3 million from $740.6 million YoY
Deckers Brands has delivered an impressive first quarter for FY 2025, showcasing robust growth and improved profitability. The 22.1% increase in net sales to
Key highlights include:
- DTC net sales growth of
24% , indicating strong consumer demand and effective direct-to-consumer strategies. - Wholesale net sales increase of
21% , suggesting healthy relationships with retail partners. - Gross margin expansion from
51.3% to56.9% , pointing to improved pricing power and operational efficiency. - HOKA brand's exceptional performance with a
29.7% sales increase, solidifying its position as a growth driver.
The company's strong cash position of
The raised FY 2025 diluted EPS guidance to
Overall, Deckers Brands appears well-positioned for continued growth, driven by its strong portfolio led by HOKA and UGG and supported by a solid financial foundation.
Deckers Brands' Q1 FY2025 results reveal significant market traction and brand strength. The
Brand performance analysis:
- HOKA: The
29.7% growth cements its status as the company's growth engine, likely benefiting from the ongoing athleisure trend and expansion into new markets. - UGG: A solid
14% growth suggests successful product diversification beyond its classic offerings and potential seasonal expansion. - Teva and Sanuk: The declines in these brands (-
4.3% and -28.4% respectively) highlight the need for strategic reassessment, with the Sanuk divestiture addressing this concern.
The
The substantial increase in SG&A expenses (
The upcoming CEO transition from Dave Powers to Stefano Caroti is a key event to watch. Caroti's background as Chief Commercial Officer suggests a potential focus on further expanding Deckers' market reach and brand positioning.
In conclusion, Deckers Brands demonstrates strong market momentum, particularly in its core brands, with opportunities for continued growth and optimization across its portfolio and global presence.
-
First Quarter FY 2025 Revenue Increased
22% to$825 Million -
First Quarter FY 2025 Diluted EPS Increased
87% to$4.52 -
FY 2025 Diluted EPS Guidance Raised to Range of
$29.75 -$30.65
“As this is my last quarter to report as CEO, I am pleased to share these strong results to kick-off fiscal year 2025,” said Dave Powers, President and Chief Executive Officer. “HOKA and UGG continue to drive robust full-price demand in the global marketplace by delivering compelling product that consumers love. Deckers has an exciting future ahead as Stefano transitions into his new role as CEO next week."
"Fiscal year 2025 is off to a great start, with HOKA and UGG delivering fantastic first quarter results that have contributed to our increased outlook for the full fiscal year," said Stefano Caroti, Chief Commercial Officer and incoming President and Chief Executive Officer. "I'm excited by the opportunity to now lead Deckers and its iconic brands, with the support of our talented teams that remain focused on the long-term opportunities ahead for this great company."
First Quarter Fiscal 2025 Financial Review (Compared to the Same Period Last Year)
-
Net sales increased
22.1% to compared to$825.3 million . On a constant currency basis, net sales increased$675.8 million 23.0% .-
Channel
-
Direct-to-Consumer (DTC) net sales increased
24.0% to compared to$310.6 million . DTC comparable net sales increased$250.4 million 21.9% . -
Wholesale net sales increased
21.0% to compared to$514.8 million .$425.4 million
-
Direct-to-Consumer (DTC) net sales increased
-
Geography
-
Domestic net sales increased
23.0% to compared to$515.9 million .$419.5 million -
International net sales increased
20.8% to compared to$309.5 million .$256.3 million
-
Domestic net sales increased
-
Channel
-
Gross margin was
56.9% compared to51.3% . -
Selling, general, and administrative (SG&A) expenses were
compared to$337.2 million .$275.7 million -
Operating income was
compared to$132.8 million .$70.7 million -
Diluted earnings per share was
compared to$4.52 .$2.41
First Quarter Fiscal 2025 Brand Summary (Compared to the Same Period Last Year)
-
HOKA® brand net sales increased
29.7% to compared to$545.2 million .$420.5 million -
UGG® brand net sales increased
14.0% to compared to$223.0 million .$195.5 million -
Teva® brand net sales decreased
4.3% to compared to$46.3 million .$48.4 million -
Sanuk® brand net sales decreased
28.4% to compared to$6.9 million .$9.6 million -
Other brands, primarily composed of Koolaburra®, net sales increased
123.5% to compared to$4.0 million .$1.8 million
Balance Sheet (June 30, 2024 as compared to June 30, 2023)
-
Cash and cash equivalents were
compared to$1.43 8 billion .$1.04 7 billion -
Inventories were
compared to$753.3 million .$740.6 million - The Company had no outstanding borrowings.
Capital Allocation
During the first fiscal quarter, the Company repurchased approximately 177 thousand shares of its common stock for a total of
Subsequent to quarter end, the Company entered into an agreement to divest the Sanuk brand, which we expect to close in August 2024.
Full Fiscal Year 2025 Outlook for the Twelve Month Period Ending March 31, 2025
The Company’s full fiscal year 2025 outlook is forward-looking in nature, reflecting our expectations as of July 25, 2024, and is subject to significant risks and uncertainties that limit our ability to accurately forecast results. This outlook assumes no meaningful changes to the Company’s business prospects or risks and uncertainties identified by management that could impact future results, which include but are not limited to: changes in economic conditions, including consumer confidence, discretionary spending, inflationary pressures, and foreign currency fluctuations; supply chain disruptions; and geopolitical tensions.
-
Net sales are still expected to increase approximately
10% to .$4.7 billion -
Gross margin is now expected to be approximately
54% . -
SG&A expenses as a percentage of net sales are now expected to be in the range of
34% to34.5% . -
Operating margin is now expected to be in the range of
19.5% to20% . -
Effective tax rate is still expected to be in the range of
22% to23% . -
Diluted earnings per share is now expected to be in the range of
to$29.75 .$30.65 - The earnings per share guidance does not take into account the impact from any potential future share repurchases or the proposed six-for-one forward stock split, which has been approved by our Board of Directors and is pending stockholder approval at our 2024 annual meeting of stockholders to be held on September 9, 2024.
Non-GAAP Financial Measures
In certain instances the Company may present financial measures that were not prepared in accordance with generally accepted accounting principles in
The non-GAAP financial measures presented by the Company may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to Deckers. For example, in order to calculate constant currency information, the Company calculates the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and remeasurements in the condensed consolidated financial statements. Further, the Company reports DTC comparable net sales on a constant currency basis for DTC operations that were open throughout the current and prior reporting periods, and may adjust prior reporting periods to conform to current year accounting policies. These non-GAAP financial measures are not intended to represent, and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. To the extent the Company utilizes such non-GAAP financial measures in the future, it expects to calculate them using a consistent method from period-to-period.
Conference Call Information
The Company’s conference call to review the results for the first quarter fiscal year 2025 will be broadcast live today, Thursday, July 25, 2024, at 4:30 pm Eastern Time and hosted at ir.deckers.com. You can access the broadcast by clicking on the link within the “Webcast” box at the top of the page. A replay of the broadcast will be available for at least 30 days following the conference call and can be accessed under the “Quarterly Earnings” section of the “Financials” tab at the aforementioned website.
About Deckers Brands
Deckers Brands is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company’s portfolio of brands includes UGG®, HOKA®, Teva®, Sanuk®, Koolaburra®, and AHNU®. Deckers Brands products are sold in more than 50 countries and territories through select department and specialty stores, Company-owned and operated retail stores, and select online stores, including Company-owned websites. Deckers Brands has over 50 years of history building niche footwear brands into lifestyle market leaders attracting millions of loyal consumers globally. For more information, please visit www.deckers.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Forward-looking statements represent our management’s current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law or the listing rules of the New York Stock Exchange, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (dollar and share data amounts in thousands, except per share data) |
|||||||
|
|
||||||
|
Three Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
825,347 |
|
|
$ |
675,791 |
|
Cost of sales |
|
355,347 |
|
|
|
329,367 |
|
Gross profit |
|
470,000 |
|
|
|
346,424 |
|
Selling, general, and administrative expenses |
|
337,193 |
|
|
|
275,688 |
|
Income from operations |
|
132,807 |
|
|
|
70,736 |
|
Total other income, net |
|
(16,346 |
) |
|
|
(10,628 |
) |
Income before income taxes |
|
149,153 |
|
|
|
81,364 |
|
Income tax expense |
|
33,528 |
|
|
|
17,812 |
|
Net income |
|
115,625 |
|
|
|
63,552 |
|
Total other comprehensive loss, net of tax |
|
(3,800 |
) |
|
|
(8,299 |
) |
Comprehensive income |
$ |
111,825 |
|
|
$ |
55,253 |
|
|
|
|
|
||||
Net income per share |
|
|
|
||||
Basic |
$ |
4.54 |
|
|
$ |
2.43 |
|
Diluted |
$ |
4.52 |
|
|
$ |
2.41 |
|
Weighted-average common shares outstanding |
|
|
|
||||
Basic |
|
25,478 |
|
|
|
26,165 |
|
Diluted |
|
25,581 |
|
|
|
26,321 |
|
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (dollar amounts in thousands) |
|||||
|
|
|
|
||
|
June 30, 2024 |
|
March 31, 2024 |
||
ASSETS |
|
|
(AUDITED) |
||
Current assets |
|
|
|
||
Cash and cash equivalents |
$ |
1,438,397 |
|
$ |
1,502,051 |
Trade accounts receivable, net |
|
303,128 |
|
|
296,565 |
Inventories |
|
753,282 |
|
|
474,311 |
Other current assets |
|
118,023 |
|
|
170,556 |
Total current assets |
|
2,612,830 |
|
|
2,443,483 |
Property and equipment, net |
|
305,585 |
|
|
302,122 |
Operating lease assets |
|
221,207 |
|
|
225,669 |
Other noncurrent assets |
|
166,597 |
|
|
164,305 |
Total assets |
$ |
3,306,219 |
|
$ |
3,135,579 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities |
|
|
|
||
Trade accounts payable |
$ |
642,595 |
|
$ |
378,503 |
Operating lease liabilities |
|
46,362 |
|
|
53,581 |
Other current liabilities |
|
223,513 |
|
|
287,909 |
Total current liabilities |
|
912,470 |
|
|
719,993 |
Long-term operating lease liabilities |
|
216,006 |
|
|
213,298 |
Other long-term liabilities |
|
103,261 |
|
|
94,820 |
Total long-term liabilities |
|
319,267 |
|
|
308,118 |
Total stockholders’ equity |
|
2,074,482 |
|
|
2,107,468 |
Total liabilities and stockholders’ equity |
$ |
3,306,219 |
|
$ |
3,135,579 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725088622/en/
Investor Contact:
Erinn Kohler | VP, Investor Relations, Corporate Planning & Business Analytics | Deckers Brands | 805.967.7611
Source: Deckers Brands
FAQ
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