In This Article:
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Revenue: Increased 17% over last year to $1.8 billion.
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Gross Margin: Improved to 60.3%.
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Diluted Earnings Per Share: Increased 19% to $3.
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UGG Revenue: Increased 16% to $1.2 billion.
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HOKA Revenue: Increased 24% to $531 million.
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SG&A Expenses: $535 million, up 25% from last year.
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Cash and Equivalents: $2.2 billion as of December 31, 2024.
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Inventory: $577 million, up 7% from last year.
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Share Repurchase: $45 million worth of shares repurchased at an average price of $162.85.
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Fiscal Year 2025 Revenue Guidance: Raised to just above $4.9 billion, approximately 15% growth.
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Fiscal Year 2025 Earnings Per Share Guidance: Increased to $5.75 to $5.80.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deckers Outdoor Corp (NYSE:DECK) reported a record third quarter with revenue growing 17% year-over-year to $1.8 billion.
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Gross margins improved to 60.3%, showcasing strong pricing power and product mix.
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Diluted earnings per share increased by 19% to $3, indicating strong profitability.
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UGG and HOKA brands continue to drive success with UGG growing 16% and HOKA increasing 24% in revenue.
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The company raised its full-year revenue expectations to over $4.9 billion, reflecting a 15% growth, up from the prior guidance of 12%.
Negative Points
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Deckers Outdoor Corp (NYSE:DECK) anticipates a challenging fourth quarter due to inventory limitations, particularly for the UGG brand.
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The company expects more normalized markdowns and promotional activity in the fourth quarter, which could impact margins.
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Foreign exchange rates are expected to be a headwind in the upcoming quarter, affecting financial performance.
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Freight costs are anticipated to be a significant headwind in the fourth quarter, impacting gross margins.
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The company plans to phase out the Koolaburra brand, which may lead to operational adjustments and potential revenue impacts.
Q & A Highlights
Q: Stefano, can you discuss how you're managing the HOKA brand for long-term growth, especially in a promotional environment, and share any upcoming product launches? A: Stefano Caroti, CEO: HOKA is a transformational brand with potential to become a major player in athletic footwear. Our strategy focuses on building awareness, delivering innovation, and managing the marketplace for sustainable growth. We're pleased with the Bondi 9 launch and have upcoming launches like the Cielo X1 in February, Clifton 10 in April, and Mafate X in May. We aim for long-term growth rather than chasing short-term numbers.