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Global footwear, apparel and accessories maker Deckers Brands has reported net sales of $1.82bn in the third quarter (Q3) of fiscal 2025 - a 17.1% rise from $1.56bn in the same quarter of the previous fiscal year.
A key driver of this growth was the direct-to-consumer (DTC) segment, which achieved net sales of $1.01bn, up 17.9% compared to $858.1m in Q3 FY24.
DTC comparable net sales also rose by 18.3% over the quarter.
During the quarter, wholesale net sales also contributed positively to the overall performance, increasing by 16.2% to reach $815.8m, up from $702.2m in the previous year’s third quarter.
Geographically, Deckers Brands experienced varied performance across its domestic and international markets during the quarter ending 31 December 2024.
Domestic net sales rose by 11.5%, totalling $1.16bn compared to $1.04bn in Q3 FY24.
In contrast, international net sales surged by 28.5%, reaching $657.9m compared to $511.9m in the same period of the previous year.
The company’s flagship UGG brand saw a net sales increase of 16.1%, amounting to $1.24bn, while the HOKA brand demonstrated even stronger growth with a 23.7% rise in net sales to $530.9m.
Teva brand net sales decreased by 6% to $24.1m, and other brands experienced a more substantial decline with a 16.6% drop to $28m.
In terms of profitability, Deckers Brands reported a net income of $456.73m for Q3 FY25, compared with $389.91m in Q3 FY24. Diluted earnings per share improved to $3 compared to $2.52 from the previous year’s quarter.
The company’s gross margin improved to 60.3% in Q3 FY25 from 58.7%. However, selling, general and administrative (SG&A) expenses rose significantly to $535.3m from $428.7m in the same period a year earlier.
Deckers Brands' operative income also showed positive momentum, increasing to $567.27m compared to $487.89m in Q3 FY24.
Looking ahead, Deckers Brands has revised its expectations for fiscal 2025, projecting net sales to increase approximately 15% to $4.9bn.
Diluted earnings per share are anticipated to fall within the range of $5.75 to $5.80, while gross margin is expected to remain at or slightly exceed 57%.
Operating margin is projected at approximately 22%.
Deckers Brands president and chief executive officer Stefano Caroti stated: “Deckers posted exceptional results in the third quarter, delivering record quarterly revenue, gross margin, and earnings.
“UGG continued to experience incredible global momentum, with the brand’s iconic franchises capturing strong full-price consumer demand across all regions. At the same time, HOKA delivered impressive results consistent with our strategy, remaining focused on scaling through innovative performance products. Our increased full-year revenue outlook calls for 15% growth, which would be our fifth consecutive year growing mid-teens or higher, complemented by our commitment to maintain top-tier levels of operating margin.”