Executive Summary
Deckers Outdoor Corporation reported a strong financial performance for Q1 2025, reflecting a 22% increase in revenue year-over-year, reaching $825 million. The growth was primarily driven by the HOKA brand, which saw a remarkable 30% growth to $545 million. The gross margin improved significantly to 56.9%, backed by better product mix and higher full-price selling. Net income surged to $115.6 million, representing an impressive 82% increase compared to the previous year. Management commentary emphasized a robust demand environment across both direct-to-consumer (DTC) and wholesale channels, indicating a well-controlled marketplace focused on sustainable growth.
Key Performance Indicators
QoQ: -14.00% | YoY:22.13%
QoQ: -16.13% | YoY:30.61%
Key Insights
1. Revenue: $825 million, up 22% YoY
2. Gross Profit: $452.5 million, gross margin of 56.9%, up 560 basis points YoY
3. Operating Income: $132.8 million, operating margin of 16.1%
4. Net Income: $115.6 million, with EPS of $4.52, up 87% YoY
5. DTC Revenue Growth: 24% YoY, HOKA DTC growth at 33% YoY
6. Cash and Cash Equivalents: $1.44 billion
7. Repurchased Shares: $152 million in Q1 2025...
Financial Highlights
1. Revenue: $825 million, up 22% YoY
2. Gross Profit: $452.5 million, gross margin of 56.9%, up 560 basis points YoY
3. Operating Income: $132.8 million, operating margin of 16.1%
4. Net Income: $115.6 million, with EPS of $4.52, up 87% YoY
5. DTC Revenue Growth: 24% YoY, HOKA DTC growth at 33% YoY
6. Cash and Cash Equivalents: $1.44 billion
7. Repurchased Shares: $152 million in Q1 2025
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
825.35M |
22.13% |
-14.00% |
| Gross Profit |
452.47M |
30.61% |
-16.13% |
| Operating Income |
132.81M |
87.75% |
-7.94% |
| Net Income |
115.63M |
81.94% |
-9.35% |
| EPS |
0.76 |
86.83% |
-8.84% |
Key Financial Ratios
operatingProfitMargin
16.1%
operatingCashFlowPerShare
$0.74
freeCashFlowPerShare
$0.59
Management Commentary
HOKA as Growth Driver: "HOKA was our main growth driver... increasing 30% versus last year to $545 million."
Positive UGG Performance: "UGG increased 14% versus last year... that reflects continued progress and creating year-round excitement."
Sustainable Future Outlook: "We're not chasing numbers... we're looking for sustainable, healthy profitable growth for years to come."
"With this being my final call before I pass the torch to Stefano at the end of the month, I am confident that the Deckers team has laid the groundwork to deliver another year of excellent results."
â Dave Powers
"Both UGG and HOKA are off to strong starts in fiscal year 2025 and are well positioned to continue capturing high levels of consumer demand for the remainder of this year and beyond."
â Dave Powers
Forward Guidance
Management reiterated their expectation for total revenue growth of approximately 10% for fiscal 2025, reaching about $4.7 billion. HOKA is expected to grow approximately 20%, while UGG is projected to increase in the mid-single-digits. The company also expects gross margin to decline slightly to around 54%, anticipating a more normalized promotional environment. The earnings per share guidance has been raised to $29.75 - $30.65, reflecting increased profitability expectations from strong first-quarter results.