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Deckers Outdoor Corporation (DECK - Free Report) delivered an impressive fourth-quarter fiscal 2025 performance, surpassing expectations and increasing year over year. The standout performances of its HOKA and UGG brands were the key drivers behind the strong results.
However, the footwear company chose not to provide an outlook for fiscal 2026 due to ongoing macroeconomic uncertainties. As a result, shares of this Goleta, CA-based company declined 15.3% in the after-market trading session yesterday.
Nonetheless, the company’s growth strategy continues to pay off, driven by an expanded brand presence and a strengthened direct-to-consumer (DTC) approach. Deckers’ focus on innovation, product development and international expansion has solidified its position, setting the stage for sustained long-term success.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
DECK delivered quarterly earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate of 57 cents. The reported figure increased substantially from the prior-year quarter’s 82 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Net sales of this company increased 6.5% year over year to $1,021.8 million and outpaced the consensus estimate of $993 million. On a constant-currency basis, net sales grew 7.5%.
Gross profit increased 7.5% year over year to $579.8 million. The gross margin in the quarter expanded 50 basis points to 56.7% from 56.2% in the year-ago period and surpassed our estimate of 53%. This improvement was primarily driven by higher levels of full-price selling for the UGG brand and a favorable brand and product mix, specifically, stronger growth in higher-margin UGG products.
These gains were partially offset by increased freight costs (which were lower than expected), an unfavorable shift in channel mix as wholesale outpaced DTC growth, and negative impacts of foreign currency exchange rates.
The company’s SG&A expenses climbed 2.7% year over year to $405.8 million. As a percentage of net sales, SG&A expenses stood at 39.7%, down 150 basis points from the last year, primarily driven by favorable foreign currency exchange rate remeasurement.
Deckers’ operating income was $173.9 million, up 20.6% from $144.3 million in the year-ago quarter. The operating margin increased 200 basis points to 17% from 15% in the prior-year period.
DECK’s Brand-Wise Discussion
The HOKA brand maintained its impressive performance, achieving a 10% year-over-year increase in sales to $586.1 million, which lagged our projected $597.6 million.
The UGG brand exhibited decent growth of 3.6% in net sales of $374.3 million, which surpassed our estimate of $313.6 million.
Meanwhile, net sales for Other brands, which are primarily comprised of Teva, AHNU and Koolaburra, declined 6.3% year over year to $61.3 million.
Deckers’ Channel & Geography-Wise Discussion
Wholesale net sales increased 12.3% year over year to $611.6 million. DTC net sales declined 1.2% to $410.2 million, while DTC comparable net sales decreased 1.6%.
Domestic net sales were flat at $647.7 million, while International net sales rose 19.9% to $374.1 million.
DECK’s Financial Snapshot
Cash and cash equivalents stood at $1.89 billion as of March 31, 2025. The company ended the quarter with a total stockholders’ equity of $2.51 billion. There were no outstanding borrowings.
In the fiscal fourth quarter, the company repurchased 1.78 million shares of its common stock for $266 million at an average price of $149.62 per share.
For fiscal 2025, the company repurchased 3.80 million shares for $567 million at an average price of $149.21 per share. As of March 31, 2025, $374.7 million remained under the company's stock repurchase authorization.
DECK Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Sneak Peek Into Deckers’ Q1 Outlook
For the first quarter of fiscal 2026, DECK expects revenues between $890 million and $910 million. HOKA is projected to grow at least in the low-double digits, while UGG is expected to increase by at least in the mid-single digit.
The gross margin is anticipated to decline 250 basis points from that reported in the prior year, led by higher freight costs, increased promotional activity and an unfavorable shift in channel mix as wholesale grows faster than DTC.
SG&A expenses are expected to rise slightly faster than revenues in the quarter, reflecting continued investments in brand marketing. Earnings per share are expected between 62 cents and 67 cents compared with 75 cents in the prior-year period, adjusted for the stock split.
Deckers has not provided any formal guidance for fiscal 2026 due to global trade uncertainties but remains focused on long-term growth. Capital expenditure is forecast at $120-130 million for fiscal 2026.
Despite the uncertain environment, DECK remains confident in the strength of its brands, its disciplined operating model, and its ability to generate strong profitability and free cash flow. With $1.9 billion in cash and a newly expanded $2.5-billion share repurchase authorization, the company is well-positioned to continue delivering value to shareholders in fiscal 2026 and beyond.
Shares of the Zacks Rank #4 (Sell) company have declined 10% in the past three months against the industry’s 2.7% rise.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and revenues implies growth of 7.5% and 0.7%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for SFIX’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial year’s earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
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Deckers Stock Falls 15% Despite Reporting Q4 Earnings & Sales Beat
Deckers Outdoor Corporation (DECK - Free Report) delivered an impressive fourth-quarter fiscal 2025 performance, surpassing expectations and increasing year over year. The standout performances of its HOKA and UGG brands were the key drivers behind the strong results.
However, the footwear company chose not to provide an outlook for fiscal 2026 due to ongoing macroeconomic uncertainties. As a result, shares of this Goleta, CA-based company declined 15.3% in the after-market trading session yesterday.
Nonetheless, the company’s growth strategy continues to pay off, driven by an expanded brand presence and a strengthened direct-to-consumer (DTC) approach. Deckers’ focus on innovation, product development and international expansion has solidified its position, setting the stage for sustained long-term success.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote
Deckers’ Quarterly Performance: Key Metrics & Insights
DECK delivered quarterly earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate of 57 cents. The reported figure increased substantially from the prior-year quarter’s 82 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Net sales of this company increased 6.5% year over year to $1,021.8 million and outpaced the consensus estimate of $993 million. On a constant-currency basis, net sales grew 7.5%.
Gross profit increased 7.5% year over year to $579.8 million. The gross margin in the quarter expanded 50 basis points to 56.7% from 56.2% in the year-ago period and surpassed our estimate of 53%. This improvement was primarily driven by higher levels of full-price selling for the UGG brand and a favorable brand and product mix, specifically, stronger growth in higher-margin UGG products.
These gains were partially offset by increased freight costs (which were lower than expected), an unfavorable shift in channel mix as wholesale outpaced DTC growth, and negative impacts of foreign currency exchange rates.
The company’s SG&A expenses climbed 2.7% year over year to $405.8 million. As a percentage of net sales, SG&A expenses stood at 39.7%, down 150 basis points from the last year, primarily driven by favorable foreign currency exchange rate remeasurement.
Deckers’ operating income was $173.9 million, up 20.6% from $144.3 million in the year-ago quarter. The operating margin increased 200 basis points to 17% from 15% in the prior-year period.
DECK’s Brand-Wise Discussion
The HOKA brand maintained its impressive performance, achieving a 10% year-over-year increase in sales to $586.1 million, which lagged our projected $597.6 million.
The UGG brand exhibited decent growth of 3.6% in net sales of $374.3 million, which surpassed our estimate of $313.6 million.
Meanwhile, net sales for Other brands, which are primarily comprised of Teva, AHNU and Koolaburra, declined 6.3% year over year to $61.3 million.
Deckers’ Channel & Geography-Wise Discussion
Wholesale net sales increased 12.3% year over year to $611.6 million. DTC net sales declined 1.2% to $410.2 million, while DTC comparable net sales decreased 1.6%.
Domestic net sales were flat at $647.7 million, while International net sales rose 19.9% to $374.1 million.
DECK’s Financial Snapshot
Cash and cash equivalents stood at $1.89 billion as of March 31, 2025. The company ended the quarter with a total stockholders’ equity of $2.51 billion. There were no outstanding borrowings.
In the fiscal fourth quarter, the company repurchased 1.78 million shares of its common stock for $266 million at an average price of $149.62 per share.
For fiscal 2025, the company repurchased 3.80 million shares for $567 million at an average price of $149.21 per share. As of March 31, 2025, $374.7 million remained under the company's stock repurchase authorization.
DECK Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Sneak Peek Into Deckers’ Q1 Outlook
For the first quarter of fiscal 2026, DECK expects revenues between $890 million and $910 million. HOKA is projected to grow at least in the low-double digits, while UGG is expected to increase by at least in the mid-single digit.
The gross margin is anticipated to decline 250 basis points from that reported in the prior year, led by higher freight costs, increased promotional activity and an unfavorable shift in channel mix as wholesale grows faster than DTC.
SG&A expenses are expected to rise slightly faster than revenues in the quarter, reflecting continued investments in brand marketing. Earnings per share are expected between 62 cents and 67 cents compared with 75 cents in the prior-year period, adjusted for the stock split.
Deckers has not provided any formal guidance for fiscal 2026 due to global trade uncertainties but remains focused on long-term growth. Capital expenditure is forecast at $120-130 million for fiscal 2026.
Despite the uncertain environment, DECK remains confident in the strength of its brands, its disciplined operating model, and its ability to generate strong profitability and free cash flow. With $1.9 billion in cash and a newly expanded $2.5-billion share repurchase authorization, the company is well-positioned to continue delivering value to shareholders in fiscal 2026 and beyond.
Shares of the Zacks Rank #4 (Sell) company have declined 10% in the past three months against the industry’s 2.7% rise.
Stocks to Consider
Some better-ranked stocks are Canada Goose (GOOS - Free Report) , Stitch Fix (SFIX - Free Report) and Allbirds Inc. (BIRD - Free Report) .
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and revenues implies growth of 7.5% and 0.7%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for SFIX’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial year’s earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.