EPS of $0.99 increased by 20.9% from previous year
Gross margin of 58.5%
Net income of 151.41M
""HOKA made great strides in fiscal 2025, with key advancements including introducing category-defining technology for pinnacle athletes..."" - Stefano Caroti
Deckers Outdoor Corporation (DECK) reported its Q4 2025 results, highlighting a robust revenue increase of 6% year-over-year, reaching $1.02 billion. This growth was propelled primarily by strong performances from its leading brands, HOKA and UGG. HOKA grew significantly, contributing to record revenues and establishing itself as a major player in the performance footwear market. Management emphasized adaptability amidst shifting trade policies and macroeconomic uncertainties, indicating readiness to leverage brand strength and market presence. The strategic focus on brand-led growth, coupled with an innovation-driven product strategy, positions Deckers for sustained long-term success. Key metrics indicate healthy profitability, despite external challenges.
Key Performance Indicators
Revenue
1.02B
QoQ: -44.08% | YoY:6.46%
Gross Profit
597.29M
58.46% margin
QoQ: -45.83% | YoY:10.72%
Operating Income
173.93M
QoQ: -69.34% | YoY:20.56%
Net Income
151.41M
QoQ: -66.85% | YoY:18.71%
EPS
1.00
QoQ: -66.67% | YoY:20.88%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $1.02 billion, up 6% YoY (Q3 2025: $1.82 billion) and down 44.08% QoQ.
**Gross Profit:** $597.29 million with a gross profit margin of 58.5%.
**Operating Income:** $173.93 million, representing a margin of 17.02%.
**Net Income:** $151.41 million with a net profit margin of 14.82%, up 18.71% YoY.
**Earnings Per Share (EPS):** $1.003, representing a 20.88% increase YoY.
Financial Highlights
- Revenue: $1.02 billion, up 6% YoY (Q3 2025: $1.82 billion) and down 44.08% QoQ.
- Gross Profit: $597.29 million with a gross profit margin of 58.5%.
- Operating Income: $173.93 million, representing a margin of 17.02%.
- Net Income: $151.41 million with a net profit margin of 14.82%, up 18.71% YoY.
- Earnings Per Share (EPS): $1.003, representing a 20.88% increase YoY.
- EBITDA: $229.13 million with an EBITDA margin of 22.42%.
- Current Ratio: 3.72, indicating strong liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.02B
6.46%
-44.08%
Gross Profit
597.29M
10.72%
-45.83%
Operating Income
173.93M
20.56%
-69.34%
Net Income
151.41M
18.71%
-66.85%
EPS
1.00
20.88%
-66.67%
Key Financial Ratios
currentRatio
3.72
grossProfitMargin
58.5%
operatingProfitMargin
17%
netProfitMargin
14.8%
returnOnAssets
4.24%
returnOnEquity
6.03%
debtEquityRatio
0.11
operatingCashFlowPerShare
$-0.48
freeCashFlowPerShare
$-0.59
priceToBookRatio
6.76
priceEarningsRatio
28.06
Net Income vs. Revenue
Expense Breakdown
Management Commentary
1. Brand Growth & Awareness:
- "...we are incredibly proud of our talented team whose dedication has driven these exceptional results. Our team's focus on the long term has proven to be a winning strategy..." - Stefano Caroti
2. Adaptability & Strategy:
- "...we believe that our company and brands are highly capable of responding to challenges with the ability to adapt to consumer and marketplace shifts as needed..." - Stefano Caroti
3. E-commerce Versus Wholesale:
- "...we are encouraging wholesale growth as we strategically expand points of distribution for a growing consumer base to experience the brand." - Steve Fasching
"HOKA made great strides in fiscal 2025, with key advancements including introducing category-defining technology for pinnacle athletes..."
â Stefano Caroti
"We believe the brand is well situated to deliver sustained success over the long run."
â Stefano Caroti
Forward Guidance
Looking ahead, management projects continued revenue growth driven by HOKA, with expectations of low double-digit growth in Q1 FY2026. The total revenue guidance sets a framework for mid-teens growth in the long term, contingent on navigating trade policy impacts and market conditions. Expectations for revenue are tempered but emphasize ongoing strategic expansion and brand awareness initiatives. Factors to monitor include consumer response to pricing adjustments and the impact of tariffs on demand.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
DECK Focus
58.46%
17.00%
6.03%
28.06%
ONON
62.10%
8.75%
6.44%
47.01%
SKX
53.30%
7.48%
2.32%
25.41%
NKE
44.70%
12.60%
10.40%
24.00%
SHOO
40.40%
8.03%
4.11%
21.55%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Deckers Outdoor Corporation remains well-positioned for future growth due to its strong brand portfolio, innovative product strategy, and secure financial standing. While external market factors could pose challenges, particularly related to tariffs and consumer sentiment, management's proactive approach in navigating these obstacles through strategic brand initiatives strengthens the investment thesis. The company's commitment to evolving consumer needs alongside its solid financial management practices makes it a potentially attractive investment in the consumer cyclical sector.
Key Investment Factors
Growth Potential
HOKA continues to show significant potential as a high-growth brand, with 24% revenue growth YoY, reflecting an expansion in wholesale partnerships, increasing brand awareness, and product innovation. UGG also demonstrates strong growth potential through successful new product launches and increasing consumer affinity.
Profitability Risk
Market risks include potential changes in US trade policy and tariffs, which could impact cost structures and consumer demand. Furthermore, macroeconomic uncertainties pose a challenge to consumer spending patterns, especially in the US market, potentially influencing future margins and sales.
Financial Position
Deckers maintains a healthy balance sheet, ending Q4 2025 with $1.89 billion in cash and equivalents, no outstanding debt, and an effective tax rate of 22.3%. The company demonstrates solid capital management with a substantial record of share repurchases, strengthening shareholder returns.
SWOT Analysis
Strengths
Strong brand recognition and loyalty, particularly for HOKA and UGG
Innovative product offerings with advancements in footwear technology