Deckers Brands CFO Steve Fasching reported that fiscal year 2025 was Deckers’ fifth consecutive year of double-digit revenue and earnings per share growth, with respective compound annual growth rates of 19 percent and 32 percent over the five-year period.

“We will remain nimble and disciplined as we navigate near-term uncertainty, while actively investing in our strategic long-term growth opportunities,” he commented in a Thursday, May 22 earnings release. “Importantly, Deckers remains capable of returning compelling value to shareholders, supported by $1.9 billion in cash on hand, sustainable cash flow generation, and our increased share repurchase authorization that now totals $2.5 billion.”

While everything looked solid at the start, the fact the company pulled guidance, and a new Board chair was appointed, and the company’s DTC channel declined in the quarter, may not have been not received well by investors. But the big metric that may have caused some nervousness is the relatively weak growth trend for the Hoka brand, which grew 10 percent in a historically important quarter for the run footwear category.

Shares fell double digits after earnings hit last quarter when the Hoka trend came in with 17 percent growth. This quarter, DECK shares fell more than 15 percent in after-market trading on Thursday after closing the day up 2.2 percent to $126.09.

Fiscal 2025 Fourth Quarter
Net sales increased 6.5 percent to $1.02 billion in the fiscal fourth quarter ended March 31, 2025, compared to $959.8 million in the prior-year Q4 period. On a constant-currency (cc) basis, net sales increased 7.5 percent year-over-year (y/y).

  • Ugg brand net sales increased 3.6 percent to $374.3 million in Q4, compared to $361.3 million in the prior-year Q4 period.
  • Hoka brand net sales increased 10.0 percent to $586.1 million in Q4, compared to $533.0 million in the prior-year Q4 period. That trend is down from 17.1 percent in Q3,
  • Other brands net sales decreased 6.3 percent to $61.3 million Q4, compared to $65.5 million in the prior-year Q4 period.

During the fourth quarter of fiscal year 2025, the company updated its reportable operating segments to better reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources.

As of March 31, 2025, the company’s three reportable operating segments now include the worldwide operations of the Ugg brand, Hoka brand, and Other brands, which is primarily comprised of the Teva brand, Ahnu brand, and Koolaburra brand. Prior to this change, the company’s six reportable operating segments included the worldwide wholesale operations of the Ugg brand, Hoka brand, Teva brand, Sanuk brand, and Other brands, and DTC.

Wholesale net sales increased 12.3 percent to $611.6 million compared to $544.6 million. Direct-to-Consumer (DTC) net sales decreased 1.2 percent to $410.2 million compared to $415.2 million. DTC comparable net sales decreased 1.6 percent.

Domestic U.S. net sales amounted to $647.7 million in the fourth quarter, flat to the prior-year comparative quarter. International net sales increased 19.9 percent to $374.1 million compared to $312.0 million.

Profitability & Expenses
Gross margin was 56.7 percent compared to 56.2 percent. SG&A expenses were $405.8 million compared to $395.2 million. Operating income was $173.9 million compared to $144.3 million.

Diluted earnings per share was $1.00 in Q4, compared to 82 cents per share in fiscal Q4 last year.

“Deckers delivered another exceptional year of results in fiscal 2025, highlighted by the Hoka and Ugg brands’ respective revenue growth of 24 percent and 13 percent, as well as record earnings per share,” said Stefano Caroti, president and CEO, Deckers Brands. “While the global trade environment has introduced greater near-term uncertainty, we are very confident in the exciting opportunities ahead for Hoka and Ugg. We view these brands as industry leaders, each with iconic and innovative products that operate in differentiated marketplaces. Alongside Deckers’ superb balance sheet, this positions us well to manage through the near-term with a focus on the long-term.”

Outlook
Given the macroeconomic uncertainty related to evolving global trade policies, the company said it will not be providing full-year guidance for fiscal year 2026 at this time. While the company does not intend to provide quarterly guidance on a regular basis, the following represents management’s current outlook for the first 20026 fiscal quarter:

  • Net sales are expected to be in the range of $890 million to $910 million.
  • Diluted earnings per share is expected to be in the range of 62 cents to 67 cents per share.
  • Diluted earnings per share guidance excludes any impact from additional share repurchases.

The company’s outlook is forward-looking in nature, reflecting our expectations as of May 22, 2025, and is subject to significant risks and uncertainties that limit our ability to accurately forecast results.

Image courtesy Hoka/Deckers Brands