Jay Sole

Jonathan Komp

Laurent Vasilescu

John Kernan

Samuel Poser

Adrienne Yih-Tennant

Rick Patel

Adrian Yee

Sam Poser

Christopher Nardone

Dana Telsey

Paul Lejuez

Rakesh Patel

- Deckers Brands delivered **$1.43 billion** in Q2 revenue, up 9% year-over-year, driven by **HOKA** (+11%) and **UGG** (+10%) growth.  **[0000910521_2200761_6]** 
- Diluted EPS was **$1.82**, a 14% increase, with gross margin expanding 30 basis points to **56.2%**.  **[0000910521_2200761_6]** 
- The company ended Q2 with **$1.4 billion** in cash, **$836 million** in inventory (up 7%), and repurchased **$282 million** of shares.  **[0000910521_2200761_7]** 
- Reiterated FY2026 guidance: revenue of **~$5.35 billion**, EPS of **$6.30–$6.39**, gross margin of **~56%**, and operating margin of **~21.5%**, while managing **$150 million** in unmitigated tariff headwinds, with **$75–$95 million** offset by mitigation strategies.  **[0000910521_2200761_7]**

Deckers Brands reports Q2 FY2026 results

c285135b8abd6d7381b0afd515ff8f9a2501c73777d213da588b68f8ee2da6a9

- Deckers posted Q1 FY26 sales of **$964.5 million** (+16.9% Y/Y) **[910521_149aeffc22024d3eaa4de7e35e97d3a9]**
- Net income rose to **$139.2 million** from $115.6 million; diluted EPS **$0.93** vs $0.75 prior-year and consensus $0.68 **[910521_149aeffc22024d3eaa4de7e35e97d3a9]**
- **HOKA revenue** reached **$653 million** (+20% Y/Y) and **UGG** **$265 million** (+19% Y/Y) **[910521_tx_349495_2]** **[910521_tx_349495_4]**
- International sales surged 49.7% while domestic sales declined 2.8%; wholesale sales grew 26.7% to $652.4 million and direct-to-consumer up 0.5% to $312.2 million **[910521_149aeffc22024d3eaa4de7e35e97d3a9]**
- Q2 FY26 guidance: revenue **$1.38–1.42 billion**, gross margin **53.5–54%**, SG&A ~33.5% of revenue, EPS **$1.50–1.55** **[910521_tx_349495_8]**
- Withdrew full-year FY26 outlook due to tariff uncertainty; ended Q1 with **$1.7 billion** cash, **$849 million** inventory, repurchased **$183 million** of shares **[910521_tx_349495_7]**
- Shares jumped **15%** in after-hours trading on the report and guidance **[910521_149aeffc22024d3eaa4de7e35e97d3a9]**

Deckers reports Q1 FY26 results: sales rise 17% on HOKA & UGG growth

702b7db825a714326669a40ca0a1768d017353349dcd060f92e663bbf5cbb57d

- Deckers reported **Q1 sales of $964.5 million**, up **16.9%** year-over-year, driven by **19.8%** growth in Hoka and **18.9%** growth in Ugg.  **[910521_149aeffc22024d3eaa4de7e35e97d3a9]** 
- Net income rose to **$139.2 million** from $115.6 million, with diluted EPS of **$0.93**, exceeding the prior-year **$0.75** and consensus of **$0.68**.  **[910521_149aeffc22024d3eaa4de7e35e97d3a9]** 
- **International sales** surged **49.7%**, offsetting a **2.8%** decline in domestic sales; wholesale sales grew **26.7%** to $652.4 million, while direct-to-consumer sales edged up **0.5%** to $312.2 million.  **[910521_149aeffc22024d3eaa4de7e35e97d3a9]** 
- Shares jumped **15%** in after-hours trading after the release and following guidance for **Q2 sales of $1.38–1.42 billion**.  **[910521_149aeffc22024d3eaa4de7e35e97d3a9]**

Deckers Outdoor Corp reports Q1 sales rise 17% on Hoka, Ugg growth

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64e061a8a1e4f4c8c703810e2b46f661976a3e06339161350f650c1d9de30d47

DECK Q1 2026: Intl Orders Surge 50% as Price Hikes Hold Firm

aae23a94d1f3e3a979ec53bd5bd5e3a3cae27c71620b8e5a6a856c67a7b0cf2a

bbf4a61b05fab4de45a3839d0ed2d2941d8644ff340616df21ac7e0854a5537e

1. **Channel Mix**  
   **Q:** How will wholesale and DTC balance out?  
   **A:** Management expects **wholesale** to remain strong but sees sequential improvements in **DTC**—with older inventory largely cleared (notably on Bondi Eight) and a more balanced channel mix emerging as seen from April through June.  **[910521_tx_349495_10]** 

2. **Gross Margin**  
   **Q:** How are margins reacting to promotions?  
   **A:** They noted that while price increases and tariffs add pressure, **store comp performance** remains robust—retail outpacing online by roughly **150 bps**—and they expect a return to more normalized promotions moving forward.  **[910521_tx_349495_15]** 

3. **US vs. International**  
   **Q:** How do US and international revenues compare?  
   **A:** International growth was impressive with around **50%** uplift, whereas US growth is modest; management sees HOKA’s DTC in the US gradually improving, building on the sequential gains observed in Q1.  **[910521_tx_349495_16]** 

4. **DTC & Retail Expansion**  
   **Q:** Will US DTC rebound and expand retail stores?  
   **A:** They anticipate a rebound in US DTC performance from April lows alongside a gradual global retail footprint expansion, including new store openings and enhanced partner performance.  **[910521_tx_349495_11]** 

5. **Price Strategy**  
   **Q:** What is the scope of planned price increases?  
   **A:** Management is executing selective, staggered price hikes—targeting both new launches and existing models—but refrains from disclosing specific percentages, keeping the approach flexible in light of tariff developments.  **[910521_tx_349495_12]** 

3c75b190f2b3758fed28c98bf75f59c1fa6243dd5213b580f9a50003e9207403

- **Tariff and Input Cost Headwinds:** Management highlighted that increased tariffs and rising costs on materials and freight are expected to further erode gross margins, with current price increases not fully offsetting these pressures.  **[910521_tx_349495_6]** **[910521_tx_349495_16]**
- **Reliance on Wholesale Over DTC:** Q&A comments indicated that while DTC performance is showing incremental improvement, the business remains heavily dependent on the wholesale channel—which tends to deliver lower full-price selling outcomes—and this imbalance could pressure margins and consumer pricing strength.  **[910521_tx_349495_10]** **[910521_tx_349495_16]**
- **Persistent High Promotional Activity:** Executives noted that promotional activity is expected to remain elevated compared to last year's record full-price sales, suggesting that this discounting strategy may continue to compress margins, highlighting potential weakness in sustaining premium pricing.  **[910521_tx_349495_9]** **[910521_tx_349495_16]**

5c9fd6e1f0e4c7174e380f23aaebec7fd679ee09179d6aa21aedba668b8d312e

- Deckers posted **Q1 FY26 revenue of $965 M** (+17% Y/Y) and **EPS of $0.93** (+24% Y/Y).  **[910521_tx_349495_6]**   
- **HOKA revenue** reached **$653 M** (+20% Y/Y), and **UGG revenue** was **$265 M** (+19% Y/Y).  **[910521_tx_349495_2]** **[910521_tx_349495_4]**   
- Q2 FY26 guidance: **revenue $1.38–1.42 B**, **gross margin 53.5–54%**, **SG&A ~33.5%** of revenue, **EPS $1.50–1.55**.  **[910521_tx_349495_8]**   
- Withdrew full-year FY26 outlook due to tariff uncertainty; ended Q1 with **$1.7 B cash**, **$849 M inventory**, and repurchased **$183 M** of shares.  **[910521_tx_349495_7]**

Deckers reports Q1 FY26 results

77965b75a31eb2b864d64b1a984159447e6df9290a6169b8969476e7ab2c6b64

- **Robust International Growth & Order Book Strength:** Executives highlighted that international markets, particularly Europe and China, are delivering **record reorders** and a strong order book, suggesting continued revenue expansion and market share gains.  **[910521_tx_349495_8]**
- **Effective Pricing Power:** The management noted that the **post-July 1 price increases** have not led to any significant decline in sales performance, demonstrating strong consumer acceptance and pricing power.  **[910521_tx_349495_9]**
- **Healthy Financial Position & Strategic Share Repurchases:** The discussion emphasized a **strong balance sheet** with ample cash reserves, which supports ongoing opportunistic share repurchase activities and signals management’s belief the stock is undervalued.  **[910521_tx_349495_7]**

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- Deckers Brands delivered **net sales of $964.5 million**, up **16.9%**, and **diluted EPS of $0.93**, up **24%** year-over-year. **[910521_44b3ea746fc743d8ba4fc8ffdfbbda0a_0]**  
- **HOKA** net sales rose **19.8% to $653.1 million** and **UGG** net sales increased **18.9% to $265.1 million**. **[910521_44b3ea746fc743d8ba4fc8ffdfbbda0a_0]**  
- **International** net sales jumped **49.7% to $463.3 million**. **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:0]**  
- The company **repurchased approximately 1.7 million shares** for **$183.0 million** in Q1 and has **$2.4 billion** remaining under its authorization as of July 10, 2025. **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:1]**  
- For Q2 FY2026 (ending September 30, 2025), Deckers expects **net sales of $1.38–$1.42 billion** and **diluted EPS of $1.50–$1.55** (ex-repurchase impact). **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:1]**

Deckers Brands reports Q1 FY2026 results

992b6527d92f473f118c1a717f00e1a3965ef463bb434a0dd31e8df795477ed9

- Deckers Brands delivered **net sales of $964.5 million** in Q1 FY 2026, up **16.9%**, and **diluted EPS of $0.93**, up **24%** year-over-year.  **[910521_44b3ea746fc743d8ba4fc8ffdfbbda0a_0]**   
- **HOKA** brand net sales rose **19.8% to $653.1 million** and **UGG** sales increased **18.9% to $265.1 million** in the quarter.  **[910521_44b3ea746fc743d8ba4fc8ffdfbbda0a_0]**   
- During Q1, the company **repurchased approximately 1.7 million shares for $183.0 million**, leaving about **$2.4 billion** of authorization remaining.  **[910521_44b3ea746fc743d8ba4fc8ffdfbbda0a_1]**   
- For Q2 FY 2026 ending September 30, 2025, Deckers expects **net sales of $1.38 billion to $1.42 billion** and **diluted EPS of $1.50 to $1.55**.  **[910521_44b3ea746fc743d8ba4fc8ffdfbbda0a_1]**

e5b4217950bb166dff16a4338edcee12211072adc1d22cb74e8b81811c583cd3

220fea2d039c3a8f75f9ffd3689e08b466753e79a4ef72b91ffce03fa209a61b

f6523b2b0a35be0d26b0b8295583cfcdc6eee4f710ecd28f35017ec1a1d4833d

- **Net sales** rose 16.9% year-over-year to **$964.5 million**, while **diluted EPS** increased 24% to **$0.93** for Q1 FY2026.  **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:0]**   
- **HOKA** net sales grew 19.8% to $653.1 million and **UGG** net sales rose 18.9% to $265.1 million; **International** net sales jumped 49.7% to $463.3 million.  **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:0]**   
- The company **repurchased ~1.7 million shares** for **$183.0 million** in Q1 and has **$2.4 billion** remaining under its authorization as of July 10, 2025.  **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:1]**   
- For Q2 FY2026, Deckers expects **net sales of $1.38 billion–$1.42 billion** and **diluted EPS of $1.50–$1.55** (ex-repurchase impact).  **[910521_0000910521-25-000028_deckex991pressrelease-6302.htm:1]**

50660ca1afd455af450532e8767bfa89c675551405430f1c18922b49075177b9

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2c6c89401879d5a92aded7d654c5f844984641c8e3918b940ed91dd01b385876

c4049eb7652cf25edc70e8b41cf451188db9baf46547e80c0bcaaec58649ff30

DECK Q4 2025: Wholesale offsets US DTC drag; targets mid-teens growth

75102acfba17bf37860b7ac55216e11bcf3ac4ddcdb01bd65afe69d1334a147e

1. **HOKA DTC Slowdown**  
   **Q:** What slowed US DTC performance?  
   **A:** Management explained that US DTC growth was pressured by promotional activities and the transition to new models, even though volumes stayed healthy and international DTC performed well, with wholesale expansion driving overall strength.  **[910521_DECK_3429792_11]** **[910521_DECK_3429792_12]** 

2. **HOKA Growth Outlook**  
   **Q:** Can mid-teens growth be sustained?  
   **A:** Despite near-term US headwinds, management remains optimistic that in a normalized environment, **mid-teen growth** is achievable through robust new model launches and strong international expansion.  **[910521_DECK_3429792_12]** **[910521_DECK_3429792_15]** 

3. **Tariff Impact**  
   **Q:** How are tariffs affecting costs?  
   **A:** The **$150 million** tariff impact is a gross figure; management expects to recapture roughly half through pricing power and vendor cost sharing, although some margin pressure will persist.  **[910521_DECK_3429792_15]** 

4. **Product Transition**  
   **Q:** Are model upgrades working well?  
   **A:** The transition to Bondi 9 and Clifton 10 has been executed effectively, with strong wholesale sell-through offsetting lower ASPs from promotions, demonstrating healthy consumer response.  **[910521_DECK_3429792_13]** 

5. **Wholesale Strategy**  
   **Q:** How is wholesale driving growth?  
   **A:** Expansion into wholesale has been strategic, focusing on door productivity and increased distribution both in the US and internationally, thereby boosting overall sales performance.  **[910521_DECK_3429792_15]** **[910521_DECK_3429792_16]** 

6. **UGG Outlook**  
   **Q:** What is UGG’s performance outlook?  
   **A:** UGG delivered strong revenue growth across channels and regions, with the men's segment particularly robust and a scarcity inventory model preserving **high margins**.  **[910521_DECK_3429792_21]** 

7. **Inventory Management**  
   **Q:** Will Q1 inventory levels rise?  
   **A:** Inventory is expected to climb in Q1 due to pulling forward stock in anticipation of tariffs and warehouse transitions in Europe, though it will remain lean overall.  **[910521_DECK_3429792_18]** 

8. **Future Product Pipeline**  
   **Q:** Are new product innovations planned?  
   **A:** Management highlighted a robust pipeline for spring/summer '26, including innovative lower-profile and technical models, signaling continued brand momentum.  **[910521_DECK_3429792_20]** 

9. **DTC vs. Wholesale Strategy**  
   **Q:** What is the long-term channel balance?  
   **A:** The long-term strategy aims for a **50-50 split** between DTC and wholesale, with a focus on e-commerce for DTC and careful physical expansion, ensuring balanced growth.  **[910521_DECK_3429792_24]** 

10. **Legacy Inventory**  
    **Q:** Is legacy inventory causing issues?  
    **A:** Legacy products like Bondi 8 have mostly been liquidated, preventing market clutter and supporting a smooth new model rollout.  **[910521_DECK_3429792_17]** 

f4a830a0d683cf76f06432b5eed51721a40d5d9c14ee75fb3d5f24b403645f65

- **US DTC Slowdown:** Concerns remain over **slower growth in the US direct-to-consumer channel for HOKA**, with management noting some unique pressures in the US market that could continue to weigh on consumer demand and overall revenue performance.  **[910521_DECK_3429792_11]**
- **Tariff Impact:** The company faces a **gross tariff cost of $150 million** for fiscal year 2026 that may only be partially mitigated by price adjustments, potentially eroding margins and impacting profitability if consumer demand dampens.  **[910521_DECK_3429792_14]**
- **Inventory Buildup Risk:** Intentional increases in inventory to address tariffs and distribution changes could signal potential future challenges if consumer demand softens, creating risks of oversupply or forced discounting.  **[910521_DECK_3429792_18]**

4a538bdc76c2a0dfd9859634d037510b61e8f405a06ae601330b99c3ad90dd6b

- **Record full-year performance**: Revenue increased **16%** to nearly **$5 billion**, with EPS rising **30%** to **$6.33** and improvements in gross (57.9%) and operating margins (23.6%), reflecting disciplined financial management.  **[910521_DECK_3429792_1]** **[910521_DECK_3429792_7]** 
- **Strong brand momentum**: HOKA’s global revenue surged **24%** to **$2.2 billion** and UGG grew **13%** to **$2.6 billion**, driven by robust performance across wholesale and DTC channels.  **[910521_DECK_3429792_2]** **[910521_DECK_3429792_4]** 
- **Robust financial strength**: The company executed significant share repurchases (approximately **$567 million** over FY2025, including **$266 million** in Q4) and maintained a solid cash position while addressing potential near-term headwinds such as increased tariffs.  **[910521_DECK_3429792_7]** **[910521_DECK_3429792_8]**

Deckers Outdoor Corp Reports Record Q4 2025 Results

e898d6edc8195bc6d8ac73dada4be609fa3e0f8af22f283e416fb37a2827c32e

- **Strong Wholesale Expansion and Global Resilience:** Management highlighted robust wholesale performance and an exceptionally strong international order book, which helps offset near-term softness in U.S. DTC channels. This strategic expansion adds new physical retail doors and leverages high consumer demand globally.  **[910521_DECK_3429792_11]** **[910521_DECK_3429792_16]**
- **Successful Product Transitions and Innovative Pipeline:** The smooth transition to new models such as Bondi 9 and Clifton 10, combined with a strong pipeline of additional product innovations for spring/summer 2026, reinforces consumer interest and supports future revenue growth.  **[910521_DECK_3429792_13]** **[910521_DECK_3429792_20]**
- **Effective Management of Cost Headwinds:** Despite potential tariff impacts, management's proactive approach—using pricing power, cost sharing with vendors, and disciplined inventory management—demonstrates resilience and positions the company to mitigate rising costs while maintaining brand strength.  **[910521_DECK_3429792_8]** **[910521_DECK_3429792_24]**

a216d125c006b85bdfa085c919675a56d58fbea0354cc69a610dd55dc95e62c6

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1a276fb0639b0902dab52a091e5d9226b608aa4133e5b8f5d7234e77296b7905

Domestic

- United States

United States

International

Total Revenue

3c99a0b60e7399f02b5e25499e5e25eea3f4123a482cf08c830c6e8d4c04a02c

- **FY 2025 revenue reached a record $4.99 billion, up 16% year-over-year, with diluted EPS hitting a record $6.33**.  **[910521_0000910521-25-000013_deckex991pressrelease-3312.htm:0]** 
- **Q4 2025 net sales climbed to $1.022 billion; key brands HOKA and UGG experienced growth of 10% and 3.6% respectively**.  **[910521_0000910521-25-000013_deckex991pressrelease-3312.htm:0]** 
- **The company also increased its share repurchase authorization to $2.5 billion, underscoring its confidence in sustained financial performance**.  **[910521_0000910521-25-000013_deckex991pressrelease-3312.htm:0]**

Deckers Outperforms in Q4 and FY 2025 with Record Revenue and EPS

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The spike in **cash and cash equivalents** in Q3 2025 was primarily driven by a robust increase in **net cash provided by operating activities**, bolstered by a strong net income of **$814,680** and favorable non-cash adjustments together with improvements in working capital elements like higher trade accounts payable and income tax payable. This operating strength, alongside relatively modest cash outflows from investing (primarily for property and equipment purchases) and financing activities (mainly due to stock repurchases), largely offset these outflows. Additionally, only a minor negative impact from foreign currency fluctuations was observed.  **[0000910521-25-000005_deck-20241231.htm:45]** **[0000910521-25-000005_deck-20241231.htm:9]** 

Why did cash and cash equivalents spike in Q3 2025?

The unusual jump in **common stock** in Q2 2025 was primarily driven by a **six-for-one forward stock split** executed on **September 13, 2024**, which increased the number of authorized shares and required adjustments to prior period results to reflect the split's impact. Additionally, the company conducted **share repurchases**—buying approximately **686,000 shares** for **$104.3 million** at a weighted average price of **$152.09**—which also affected the common stock balance.  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]** **[0000910521-24-000059_deck-20240930.htm:4]** **[0000910521-24-000059_deck-20240930.htm:12]** **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]** **[0000910521-24-000059_deck-20240930.htm:6]** 

What drove the unusual jump in common stock in Q2 2025?

The sharp drop in **other intangible assets** in Q2 2025 was primarily driven by the **amortization of intangible assets**. The documents report that the balance decreased from **$27,083 thousand as of March 31, 2024** to **$15,906 thousand as of September 30, 2024**, reflecting the ongoing amortization process.  **[0000910521-24-000059_deck-20240930.htm:5]** 

What caused the sharp drop in other intangible assets in Q2 2025?

The **income tax receivable** is so high in Q4 2024 primarily due to **favorable changes in operating assets and liabilities**, which led to significant timing differences in tax payments and refunds, and was further influenced by a **substantial increase in net income** during the period. These factors, along with specific tax adjustments noted as part of the operating cash flow, collectively contributed to the high receivable amount in Q4 2024.  **[0000910521-24-000017_deck-20240331.htm:72]** **[0000910521-24-000017_deck-20240331.htm:100]** **[0000910521-24-000017_deck-20240331.htm:99]** 

Why is income tax receivable so high in Q4 2024?

The surge in total assets in Q3 2025 was primarily driven by a **significant increase in cash and cash equivalents**, which rose from **$1,502,051 thousand** to **$2,240,923 thousand** due to strong operating cash flows of **$1,117,515 thousand**. Additionally, higher **inventories** increased to support growing sales and demand, and **property and equipment, net** also grew through strategic investments in infrastructure and retail operations.  **[0000910521-25-000005_deck-20241231.htm:5]** **[0000910521-25-000005_deck-20241231.htm:9]** 

What factors contributed to the surge in total assets in Q3 2025?

8785c893dfa26d6268875b37eb5c27b8f5789eb772c73baf2efaa7d9c6d82bd4

The available documents offer conflicting perspectives. One document shows a **Basic Net Income per Share of (2.19)** for Q2 2025  **[0000910521-24-000059_deck-20240930.htm:6]** , which would be considered very low, but the further discussion in another document explains a **significant increase** in Basic Net Income per Share—from **$1.14** in Q2 2024 to **$1.59** in Q2 2025—attributing the improvement to factors such as higher net income, improved gross margins, stock repurchases, and operating leverage.  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]**  Neither explanation directly addresses why the figure would be so low if it were indeed **(2.19)**. Therefore, based on the provided information, there isn’t a definitive or coherent explanation for the much lower Basic Net Income per Share in Q2 2025.

Why was Basic Net Income per Share so low in Q2 2025?

The documents describing Q3 2025 indicate an **increase** in Basic Net Income per Share rather than a decline. In fact, one source notes that basic net income per share rose from **$2.53 in Q3 2024** to **$3.01 in Q3 2025**, driven by factors such as **higher net income**, **improved gross margins**, and a **decrease in weighted-average shares outstanding** from the share repurchase program.  **[0000910521-25-000002_deckex991pressrelease-1231.htm:0]** **[0000910521-25-000002_deckex991pressrelease-1231.htm:3]** **[DECK_3413778_7]**  There is no explanation provided for a sharp decline in this metric for Q3 2025 in the available documents.

What contributed to the sharp decline in Basic Net Income per Share in Q3 2025?

The surge in **Net Income** for Q1 **2025** was driven by several factors. **Higher net sales** played a primary role, increasing by **22%** to **$825,347 thousand**, with particularly strong performances from the **HOKA** (up **30%**) and **UGG** (up **14%**) brands. Additionally, the company achieved an **improved gross margin** of **56.9%** (compared to **51.3%** in Q1 2024) due to a favorable mix of brands and products, higher levels of full-price selling, and lower freight costs. **Higher operating income** also contributed remarkably, with operating income rising to **$132,807 thousand**, driven by robust contributions from the HOKA wholesale and Direct-to-Consumer channels. Furthermore, **higher interest income** from increased average invested cash balances and interest rates, along with a reduction in weighted-average shares outstanding from a share repurchase of **177 thousand shares**, further bolstered earnings per share.  **[DECK_3394334_6]** **[0000910521-24-000037_deckex991pressrelease-6302.htm:0]** **[0000910521-24-000037_deckex991pressrelease-6302.htm:3]** **[0000910521-24-000042_deck-20240630.htm:29]** 

What factors drove the surge in Net Income in Q1 2025?

09e5e4be67ef8358a87fa1feb52ce215ced8a345964e5839d031d3b57dae31c7

Deckers Outdoor Corporation reported a very low operating cash flow in Q4 2024—**(28,674.00) thousand USD**—primarily due to the impact of operating working capital and timing adjustments. In Q4, factors such as changes in operating accounts, including trade payables, inventories, and accrued expenses, as well as tax-related adjustments (with increases in income tax payable and decreases in income tax receivable), contributed to a negative cash flow despite favorable non‑cash adjustments and higher net income noted over the period.  **[0000910521-24-000017_deck-20240331.htm:100]** 

Why was Operating Cash Flow so low in Q4 2024?

Operating Cash Flow turned negative in Q2 2025 primarily due to **unfavorable changes in operating assets and liabilities**. Specifically, the company experienced a **$233,409 thousand unfavorable impact** because of **higher purchases of inventory**, **lower net trade accounts payable** related to the timing of receipts and disbursements, **higher trade accounts receivable**, and **lower accrued expenses** due to performance-based compensation payments. Although **favorable non-cash adjustments** from net income partially offset this impact (providing a **$133,981 thousand favorable adjustment**), it was not sufficient to overcome the negative factors, resulting in a net negative operating cash flow in Q2 2025.  **[0000910521-24-000059_deck-20240930.htm:43]** **[0000910521-24-000059_deck-20240930.htm:8]** 

Why did Operating Cash Flow turn negative in Q2 2025?

The strong rebound in Q3 2025 was primarily driven by a marked improvement in non-cash adjustments to net income. In particular, a **$204,346 thousand** increase in net income after non‐cash adjustments significantly bolstered operating cash flow. This positive effect, however, was partially offset by **$148,689 thousand** of unfavorable changes in operating assets and liabilities—impacted by factors such as higher inventory purchases, the timing of tax payments, and lower net trade accounts payable—which collectively still resulted in a robust recovery in cash flow.  **[0000910521-25-000005_deck-20241231.htm:45]** 

What drove the strong rebound in Operating Cash Flow in Q3 2025?

The documents do not provide any specific details on what contributed to the dramatic turnaround in **Free Cash Flow** in Q3 2025. The available information focuses on **Net Cash Used in Investing Activities** and explains that for the nine months ended December 31, 2024, a significant decrease was driven by an increase in cash proceeds from the sale of certain assets.  **[0000910521-25-000005_deck-20241231.htm:45]** **[0000910521-25-000005_deck-20241231.htm:9]**  Without additional details specifically addressing free cash flow in Q3 2025, we cannot definitively determine the contributing factors.

What contributed to the dramatic turnaround in Free Cash Flow in Q3 2025?

73a91441ef168c93639170602072423afeaf82a95dcb06d330002425c2c2e459

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fc1624a7db097bd3af2cffdad16dd03721b06fa89a5266aa82a9a26e8e872424

a15b2c5fb8f387a3b54de9c1096f17417fb48e66dbba1cd63f8ee8e42616605c

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4f07d120c4f717049976a9fc74f14033e8dca0c5acd4c1eac84fd98a9a7c7a32

| Name                | Is Executive | Is Board Member | Position                          | External Roles                                                                 | Short Bio                                                                                                                                                                                                                     | Start Date       |
|---------------------|--------------|------------------|-----------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
| Stefano Caroti      | true         | false            | President and CEO                | None                                                                          | Stefano Caroti became CEO on **August 1, 2024**, after joining DECK in 2015. He previously served as Chief Commercial Officer and Interim President of HOKA. He has extensive experience in global commerce and brand growth.  **[0000910521-24-000004_deck-20240201.htm:1]** **[0000910521-24-000004_deckers-exh991pressrelease.htm:1]** **[0000910521-24-000017_deck-20240331.htm:5]** **[0000910521-25-000005_deck12312024exhibit321.htm:0]**  | August 1, 2024  |
| Steven J. Fasching  | true         | false            | Chief Financial Officer (CFO)    | None                                                                          | Steven J. Fasching joined DECK in 2011 and became CFO in **June 2018**. He has over 30 years of experience in financial and strategic planning.  **[0000910521-24-000031_deck-20240723.htm:46]** **[0000910521-23-000025_deck-20230724.htm:44]** **[0000910521-25-000002_deck-20250130.htm:2]**                                                                      | June 2018       |
| Angela Ogbechie     | true         | false            | Chief Supply Chain Officer       | None                                                                          | Angela Ogbechie has been with DECK since 2008 and became Chief Supply Chain Officer in **June 2022**. She has expertise in global demand planning, logistics, and distribution.  **[0000910521-23-000025_deck-20230724.htm:45]** **[0000910521-24-000031_deck-20240723.htm:47]** **[0000910521-24-000025_deck-20240712.htm:47]**                                    | June 2022       |
| Thomas Garcia       | true         | false            | Chief Administrative Officer     | None                                                                          | Thomas Garcia joined DECK in 2009 and became CAO in **2021**. He oversees Legal, ESG, Strategy, and Communications.  **[0000910521-23-000025_deck-20230724.htm:45]** **[0000910521-23-000025_deck-20230724.htm:44]** **[0000910521-22-000024_deck-def14ax2022.htm:41]**                                                                                               | 2021            |
| Anne Spangenberg    | true         | false            | President of Fashion Lifestyle   | None                                                                          | Anne Spangenberg joined DECK in **July 2022** as President of Fashion Lifestyle. She has over 25 years of experience in global consumer-focused retail, including roles at NIKE, Gap, and Macy's.  **[0000910521-24-000031_deck-20240723.htm:47]** **[0000910521-24-000025_deck-20240712.htm:47]** **[0000910521-23-000025_deck-20230724.htm:45]**                   | July 2022       |
| Robin Green         | true         | false            | President of HOKA                | None                                                                          | Robin Green became President of HOKA in **February 2024**. Further details about their background are not provided in the documents.  **[0000910521-24-000031_deck-20240723.htm:45]** **[0000910521-24-000025_deck-20240712.htm:45]** **[0000910521-24-000056_deck-20241024.htm:0]**                                                                              | February 2024   |
| Michael F. Devine III | false      | true             | Chair of the Board               | Director at Five Below, Inc.                                                 | Michael F. Devine III has been a director at DECK since **2011** and serves as Chair of the Board. He has extensive financial leadership experience, including as CFO of Coach, Inc..  **[0000910521-24-000031_deck-20240723.htm:18]** **[0000910521-24-000025_deck-20240712.htm:18]** **[0000910521-23-000025_deck-20230724.htm:16]** **[0000910521-22-000024_deck-def14ax2022.htm:15]**                           | 2011            |
| David A. Burwick    | false        | true             | Director                         | Director at BJ's Wholesale Club Holdings, Inc. and The Duckhorn Portfolio, Inc. | David A. Burwick has been a director at DECK since **2021**. He previously served as CEO of The Boston Beer Company and has held leadership roles at PepsiCo and Weight Watchers.  **[0000910521-24-000031_deck-20240723.htm:19]** **[0000910521-24-000025_deck-20240712.htm:19]** **[0000910521-23-000025_deck-20230724.htm:17]**                                 | 2021            |
| Nelson C. Chan      | false        | true             | Director                         | Chair of the Board at Synaptics, Inc.; Director at Twist Bioscience Corporation | Nelson C. Chan has been a director at DECK since **2014**. He has extensive experience in the footwear and apparel industries, including roles at NIKE and PUMA.  **[0000910521-24-000031_deck-20240723.htm:21]** **[0000910521-24-000025_deck-20240712.htm:21]** **[0000910521-23-000025_deck-20230724.htm:18]** **[0000910521-22-000024_deck-def14ax2022.htm:17]**                                               | 2014            |
| Cynthia L. Davis    | false        | true             | Director                         | Director at Kennametal Inc. and Brinker International, Inc.; Vice Chair of Furman University | Cynthia L. Davis has been a director at DECK since **2018**. She has held leadership roles at NIKE and Golf Channel and serves on multiple boards.  **[0000910521-24-000031_deck-20240723.htm:22]** **[0000910521-24-000025_deck-20240712.htm:22]** **[0000910521-23-000025_deck-20230724.htm:19]** **[0000910521-22-000024_deck-def14ax2022.htm:18]**                                                             | 2018            |
| Juan R. Figuereo    | false        | true             | Director                         | Director at Western Alliance Bancorporation; Venture Partner at Ocean Azul Partners | Juan R. Figuereo has been a director at DECK since **2020**. He has extensive financial leadership experience, including CFO roles at Revlon and Newell Brands.  **[0000910521-24-000031_deck-20240723.htm:23]** **[0000910521-24-000025_deck-20240712.htm:23]** **[0000910521-23-000025_deck-20230724.htm:20]** **[0000910521-22-000024_deck-def14ax2022.htm:19]**                                                 | 2020            |
| Maha S. Ibrahim     | false        | true             | Director                         | General Partner at Canaan Partners; Trustee at Carnegie Endowment for International Peace | Maha S. Ibrahim has been a director at DECK since **2021**. She is a venture capitalist with expertise in enterprise and consumer companies.  **[0000910521-24-000031_deck-20240723.htm:24]** **[0000910521-24-000025_deck-20240712.htm:24]** **[0000910521-23-000025_deck-20230724.htm:22]** **[0000910521-22-000024_deck-def14ax2022.htm:21]**                                                                   | 2021            |
| Victor Luis         | false        | true             | Director                         | Director at FarFetch Limited                                                 | Victor Luis has been a director at DECK since **2020**. He previously served as CEO of Tapestry, Inc., where he led its transformation into a house of modern luxury brands.  **[0000910521-24-000031_deck-20240723.htm:25]** **[0000910521-24-000025_deck-20240712.htm:25]** **[0000910521-23-000025_deck-20230724.htm:23]** **[0000910521-22-000024_deck-def14ax2022.htm:22]**                                   | 2020            |
| Lauri M. Shanahan   | false        | true             | Director                         | Director at CAVA Group, Inc. and Treasury Wine Estates Limited               | Lauri M. Shanahan has been a director at DECK since **2011**. She has extensive experience in retail and consumer products, including leadership roles at Gap Inc..  **[0000910521-24-000031_deck-20240723.htm:27]** **[0000910521-24-000025_deck-20240712.htm:27]** **[0000910521-23-000025_deck-20230724.htm:25]**                                                  | 2011            |
| Bonita C. Stewart   | false        | true             | Director                         | Board Partner at Gradient Ventures; Director at PagerDuty, Inc.              | Bonita C. Stewart has been a director at DECK since **2014**. She has expertise in technology and governance and is the co-author of *A Blessing: Women of Color Teaming Up to Lead, Empower and Thrive*.  **[0000910521-24-000025_deck-20240712.htm:28]** **[0000910521-24-000031_deck-20240723.htm:28]** **[0000910521-23-000025_deck-20230724.htm:26]**            | 2014            |

d50b4273d9da9afae205def6342c0ad623b3ab6244805e1c69c5766c79c9f3a5

897b2f0321220c5ddaba47139b4abbf60debeeb35d429e026c658e0da8a2263d

8c0d9db489592ed39ce8aa9e56920d1c76b05248cba51904132212a87bd4472c

89cfff5c27e1d0319b633f4118d425d2be9929e2db4c8008ecad40853b789ea6

**Annual guidance for FY 2025:**  
- **Revenue**: just above $4.9B (~15% growth)  **[DECK_3413778_8]**  (raised from $4.8B (~12% growth)  **[DECK_3403677_7]** )  
- **HOKA**: ~24% year-over-year growth  **[DECK_3413778_8]**  (no change from prior guidance  **[DECK_3403677_7]** )  
- **Gross margin**: at or slightly better than 57%  **[DECK_3413778_8]**  (raised from 55%–55.5%  **[DECK_3403677_7]** )  
- **SG&A**: ~35% of revenue  **[DECK_3413778_8]**  (no change from prior guidance  **[DECK_3403677_7]** )  
- **Operating margin**: ~22%  **[DECK_3413778_8]**  (raised from 20%–20.5%  **[DECK_3403677_7]** )  
- **Effective tax rate**: ~23.5%  **[DECK_3413778_8]**  (no change from prior guidance of 23%–23.5%  **[DECK_3403677_7]** )  
- **EPS**: $5.75 to $5.80  **[DECK_3413778_8]**  (raised from $5.15 to $5.25  **[DECK_3403677_7]** )  

- **UGG**: Revenue growth expected to be limited in Q4 due to inventory constraints  **[DECK_3413778_8]**  (no prior guidance)  
- **FX impact**: 50-basis-point headwind to gross margin in Q4  **[DECK_3413778_22]**  (no prior guidance)  
- **Promotions and closeouts**: up to 100-basis-point impact on gross margin  **[DECK_3413778_22]**  (no prior guidance)  
- **Freight costs**: 150-basis-point headwind  **[DECK_3413778_22]**  (no prior guidance)  
- **Inventory**: constraints expected to limit Q4 growth  **[DECK_3413778_8]**  (no prior guidance)  
- **Clifton 10 launch impact**: some revenue will shift into Q1 FY 2026  **[DECK_3413778_23]**  (no prior guidance)  

74db0ac2825606cf8fc129985bbd9c5ebe70fc7411920582b248555343c9c200

1. **Future Growth Prospects**  
   **Q:** Will double-digit growth return in fiscal '26?  
   **A:** Management believes that demand for their brands remains strong and continues to see incredible performance with consumers. While they aren't providing guidance for next year, they emphasize that their confidence in the brands remains unchanged. They've increased their outlook for the year based on current performance and will manage the business accordingly.  **[DECK_3413778_16]** 

2. **Gross Margin Outlook**  
   **Q:** Can high margins be maintained amidst pressures?  
   **A:** Maintaining current margin levels will be challenging due to inflationary pressures, foreign exchange impacts, and increased freight costs. Management anticipates pressures in Q4, including a freight headwind of about **150 basis points** and FX impact around **50 basis points**. Despite these challenges, the brands continue to deliver incredible margins.  **[DECK_3413778_15]** ,  **[DECK_3413778_21]** ,  **[DECK_3413778_22]** 

3. **HOKA Brand Growth**  
   **Q:** Is HOKA still expected to deliver 20% annual growth?  
   **A:** HOKA is seen as a transformational brand with potential to become a major player in athletic footwear. While no specific growth targets are provided, the focus is on building the brand for long-term sustainable growth rather than chasing short-term numbers. They continue to build global market share with a strong lineup of innovative products.  **[DECK_3413778_11]** 

4. **International Expansion**  
   **Q:** How will international growth compare to the U.S.?  
   **A:** International growth is expected to outpace the U.S., with the goal of international sales reaching **50%** of total sales over time. In Q3, the international business performed strongly, and this trend is expected to continue into Q4 and fiscal '26.  **[DECK_3413778_14]** 

5. **Q4 Growth Expectations**  
   **Q:** Why is Q4 growth lower than previous quarters?  
   **A:** The lower growth rate in Q4 is due to product flow timing and tough comparisons to the prior year when there was significant wholesale expansion. Some sales expected in Q4 occurred earlier, leading to inventory constraints and stock-outs on popular styles. This is not indicative of a change in demand but a result of managing the marketplace and inventory levels.  **[DECK_3413778_16]** ,  **[DECK_3413778_14]** ,  **[DECK_3413778_19]** 

6. **Margin Impact Factors**  
   **Q:** What are the specific headwinds impacting gross margin?  
   **A:** Gross margin in Q4 will be impacted by a **150 basis point** freight headwind due to higher freight rates compared to last year's unusually low rates. There is also a **50 basis point** FX headwind due to a stronger dollar. Additionally, increased closeout promotions, including the transition from Clifton 9 to Clifton 10, could impact margins by up to **100 basis points**. Mix shifts provide a tailwind but less than **50 basis points**.  **[DECK_3413778_21]** ,  **[DECK_3413778_22]** ,  **[DECK_3413778_23]** 

7. **Product Launches**  
   **Q:** What new HOKA products are launching?  
   **A:** HOKA has a strong lineup of innovative products launching, including the **Bondi 9**, which has had a very positive early response; the **Cielo X1** launching in February; and the **Clifton 10** launching in April, their biggest franchise. They are also introducing the **Mafate X** in May and the **Arahi 8**, one of their biggest franchises. These products are booked well and expected to drive growth.  **[DECK_3413778_11]** ,  **[DECK_3413778_12]** ,  **[DECK_3413778_17]** 

8. **Distribution Strategy**  
   **Q:** How is HOKA managing its distribution expansion?  
   **A:** HOKA is being very selective and thoughtful in expanding distribution, focusing on building presence in key cities through owned stores and partner stores, especially internationally. While they are opening a few more doors, they are managing the environment to drive a pull model and maintain brand scarcity. Plans include opening a flagship in Shanghai on May 7 next year.  **[DECK_3413778_17]** ,  **[DECK_3413778_18]** 

9. **Inventory and Stock-outs**  
   **Q:** How are inventory levels affecting sales?  
   **A:** Some sales expected in Q4 occurred earlier, leading to stock-outs of popular styles and inventory constraints in Q4. This limits the ability to meet all the demand but helps drive brand heat and demand. Management is controlling the marketplace and inventory to maintain brand equity and margins.  **[DECK_3413778_14]** ,  **[DECK_3413778_16]** 

10. **UGG Brand Performance**  
    **Q:** How is the UGG brand performing?  
    **A:** UGG is stronger than ever, expanding beyond boots and slippers into sneakers, clogs, and sandals. All genders are growing in double digits. The brand continues to resonate with consumers, with popular styles selling out, contributing significantly to the company's performance.  **[DECK_3413778_13]** ,  **[DECK_3413778_16]** 

11. **Competitive Dynamics**  
    **Q:** What is the competitive landscape for HOKA?  
    **A:** While competitors are offering better products, HOKA has the advantage of a strong lineup of innovation stories expected to perform well in the marketplace. Early reads on the Bondi 9 are very positive, and upcoming launches are booking well in wholesale for Q4 and the first half of next year.  **[DECK_3413778_17]** 

12. **Gross Margin Components**  
    **Q:** Can you detail the expected gross margin impacts in Q4?  
    **A:** Expected gross margin headwinds in Q4 include approximately **150 basis points** from higher freight costs, **50 basis points** from unfavorable FX, and up to **100 basis points** from increased closeout promotions, particularly due to product changeovers like the Clifton 9 to Clifton 10 transition. Positive impacts from mix and channel are less than **50 basis points**.  **[DECK_3413778_21]** ,  **[DECK_3413778_22]** ,  **[DECK_3413778_23]** 

13. **Clifton 10 Launch Impact**  
    **Q:** How will the Clifton 10 launch affect sales and margins?  
    **A:** The Clifton 10 will begin flowing into the market, with some sales in Q4 and continuing into Q1. The transition from Clifton 9 to Clifton 10 involves closeouts of the older model, which are embedded in the expected margin impacts. The impact on margins from sunsetting the Clifton 9 is included in the anticipated **100 basis points** from closeout promotions.  **[DECK_3413778_23]** 

14. **Wholesale Channel Performance**  
    **Q:** How is HOKA performing in specialty running wholesale?  
    **A:** HOKA continues to perform well in the specialty running channel, though the company doesn't disclose the percentage of business by channel. Exclusive offerings like the **Skyflow** have performed exceptionally well in this channel.  **[DECK_3413778_18]** 

cdf69a38fb97816ddb0373812934c97232ca9729f93388afc35a50eeab10f2ec

DECK Q3: double-digit growth and top-tier margins. Despite up to 300bps margin pressure in Q4 (freight 150bps, FX 50bps, closeouts 100bps), mgmt targets $7–$8B in sales long-term. UGG is thriving; HOKA stands to be a major growth driver.

7efb6869b6405066a71b2f95b90bcb046e4aa189a3a50ce5f7eade13f11c69a4

- **Strong consumer demand and global resonance of DECK's key brands, UGG and HOKA, are driving double-digit growth across all genders and categories**, with UGG being **stronger than it's ever been** and HOKA having **the potential to become a major player in the performance space**.  **[DECK_3413778_14]** **[DECK_3413778_13]**
- **DECK sees significant long-term growth potential**, with aspirations to reach **$7 to $8 billion in sales over time**, driven by the brands' expansion into new categories and markets, and **no limitations to their growth**.  **[DECK_3413778_13]**
- **The company's disciplined marketplace management and scarcity model support high gross margins**, contributing to **an operating margin profile that is the highest among sector peers**, allowing DECK to maintain strong profitability even as the brands grow.  **[DECK_3413778_15]**

f6fe0a9fe974ecd11f2c36bc2bc9654754c583a1149276c6f211436289b97e5f

- **Deckers anticipates gross margin headwinds in Q4 due to increased markdowns and closeouts, with closeout promotions impacting margins by up to 100 basis points and foreign exchange headwinds of approximately 50 basis points.**  **[DECK_3413778_22]** ,  **[DECK_3413778_23]** ,  **[DECK_3413778_19]**
- **Inventory constraints and potential stock-outs in Q4, particularly for popular UGG styles, may limit sales growth as sales were pulled forward into Q3, leading to lower anticipated growth rates in Q4.**  **[DECK_3413778_14]** ,  **[DECK_3413778_16]**
- **Maintaining current high margin levels may be challenging as the brands grow larger, due to inflationary pressures and foreign exchange headwinds impacting profitability in the months and year to come.**  **[DECK_3413778_15]**

9e900c8ab536735da34815ecacf0001e4f387f8677030a86d46dc10295ae2dcd

b421861e581480fd9708888f7c832f984e5e8d26d1f05795fb075b7e21632584

cea5e714e27e495559c2580da524e9f8d148d962fa517dea3357640d4547f88f

- Total Revenue: $1,827 million (+17% YoY)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:3]** **[0000910521-24-000007_deck-20231231.htm:6]**   
- UGG: $1,244 million (+16% YoY)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:0]** **[0000910521-24-000007_deck-20231231.htm:30]**   
- HOKA: $530.9 million (**+24% YoY**)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:0]** **[0000910521-24-000007_deck-20231231.htm:30]**   
- Teva: $24.1 million (-6% YoY)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:0]** **[0000910521-24-000007_deck-20231231.htm:30]**   
- Direct-to-Consumer: $1,011 million (+18% YoY)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:0]** **[0000910521-24-000007_deck-20231231.htm:22]**   
- Operating Income (EBIT): $567.3 million (+16% YoY)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:3]** **[0000910521-24-000007_deck-20231231.htm:6]**   
- Net Income: $456.7 million (+17% YoY)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:3]** **[0000910521-24-000007_deck-20231231.htm:6]**   
- EPS - Diluted: $2.99 (**-80% YoY**)  **[0000910521-25-000002_deckex991pressrelease-1231.htm:3]** **[0000910521-24-000007_deck-20231231.htm:6]**   

2bfa9592e837cd0836350240080031e38e1d780c5bfd51de48f77893a75dcdfc

a19d1cd1f8c51e4e1f72a32004a9d30ccdd5decb52375578cf4342f5f1d1184d

- **Total Revenue**: $1,311.32M (+20% YoY)  **[0000910521-23-000042_deck-20230930.htm:6]** **[0000910521-24-000059_deck-20240930.htm:6]**   
- UGG: $689.87M (+13% YoY)  **[0000910521-23-000042_deck-20230930.htm:6]** **[0000910521-24-000059_deck-20240930.htm:33]**   
- **HOKA**: $570.90M (+35% YoY)  **[0000910521-23-000042_deck-20230930.htm:6]** **[0000910521-24-000059_deck-20240930.htm:33]**   
- Sanuk: $2.82M (−48% YoY)  **[0000910521-23-000042_deck-20230930.htm:6]** **[0000910521-24-000059_deck-20240930.htm:33]**   
- Other Brands: $25.75M (−16% YoY)  **[0000910521-23-000042_deck-20230930.htm:6]** **[0000910521-24-000059_deck-20240930.htm:33]**   
- Direct-to-Consumer: $397.67M (+20% YoY)  **[0000910521-23-000042_deck-20230930.htm:28]** **[0000910521-24-000059_deck-20240930.htm:33]**   
- Domestic: $853.91M (+14% YoY)  **[0000910521-23-000042_deck-20230930.htm:28]** **[0000910521-24-000059_deck-20240930.htm:33]**   
- **International**: $457.41M (+33% YoY)  **[0000910521-23-000042_deck-20230930.htm:28]** **[0000910521-24-000059_deck-20240930.htm:33]**   

5bbf5be201e6079abad37279a8768c9a5f9c7dbde35d2df089c1e0169d5de699

739dcea4b49aa9459c8b6d84843af5fc74d2bdeccf67d948532a4d100022dc66

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 1992  **[0000910521-24-000017_deck-20240331.htm:96]**  | Present  | Current auditor   |

f479abe667265444729f421b19a3d92a84110f56be898f37a5c0f20cb443b8c7

**Annual guidance for FY 2025:**
- **Revenue growth**: Approximately 12% to $4.8B  **[DECK_3403677_7]**  (raised from approximately 10% to $4.7B  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **HOKA**: Expected to increase approximately 24%  **[DECK_3403677_7]**  (raised from approximately 20%  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **UGG**: Mid-single-digit growth  **[DECK_3403677_7]**  (no change from prior guidance  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **Gross margin**: 55% to 55.5%  **[DECK_3403677_7]**  (raised from approximately 54%  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **SG&A**: Approximately 35% of revenue  **[DECK_3403677_7]**  (raised from 34% to 34.5%  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **Operating margin**: 20% to 20.5%  **[DECK_3403677_7]**  (raised from 19.5% to 20%  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **Effective Tax Rate**: 23% to 23.5%  **[DECK_3403677_7]**  (raised from 22% to 23%  **[DECK_3394334_7]** **[DECK_3394334_6]** )  
- **Diluted EPS**: $5.15 to $5.25  **[DECK_3403677_7]**  (lowered from $29.75 to $30.65  **[DECK_3394334_7]** **[DECK_3394334_6]** )  

81c02399f5899b191109bb87ddb3d8504dd0017e1e18b9947c3346f29ab9f6b2

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

ec1be02090ef728526ca08c4799ae59a1b288bd358c4e3990f125206c2e512e9

9c606a51d91ebc402f1afb05fc5a5835133cfa25e1f1fc206941c3d1530f1806

521caebca712fe59c2892a3a6c68f97f21edfd260ed8a393f7080c3927c2915f

Total volume of units sold (units)

Percentage increase in total volume of units sold (percent)

Number of global retail stores (stores)

Number of UGG brand retail stores (stores)

Number of HOKA brand retail stores (stores)

Number of concept stores (stores)

Number of outlet stores (stores)

e6319946c8c295d370e1099348357f058dee7c9c09a07c4de583188d18f80d5c

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

1. **Operating Margin Sustainability**  
   **Q:** What's the long-term operating margin outlook?  
   **A:** Steve Fasching explained that they view the business as a **high-teen margin business**.  **[DECK_3371584_13]**  When the company performs exceptionally well, like in Q3, they allow some of that margin to run through, resulting in operating margins above the high-teens.  **[DECK_3371584_13]**  They carefully watch where to invest and will continue this approach, focusing on long-term health rather than short-term gains.  **[DECK_3371584_13]** 

2. **UGG Growth Prospects**  
   **Q:** Can UGG continue its strong growth?  
   **A:** David Powers emphasized that UGG is now considered a growth brand within the portfolio.  **[DECK_3371584_14]**  The brand is in a very different position than in the past, diversifying beyond core boots into slippers, hybrid innovations, and versions of sneakers, appealing to a younger and more diverse global consumer.  **[DECK_3371584_14]**  They remain confident in the growth opportunities for UGG and expect healthy mid-single-digit growth rates, with potential for more if they optimize men's and apparel lines.  **[DECK_3371584_23]** 

3. **Pricing Strategy and Gross Margins**  
   **Q:** How are price increases impacting margins?  
   **A:** The company strategically implemented price increases on a handful of best-selling UGG styles, which significantly boosted revenue.  **[DECK_3371584_17]**  Gross margin expanded by **580 basis points**, with about **340 basis points** coming from price increases and reduced promotions.  **[DECK_3371584_17]**  They will continue to evaluate pricing but do not plan broad-based increases, focusing instead on appropriate pricing for consumers.  **[DECK_3371584_17]** 

4. **Direct-to-Consumer Focus**  
   **Q:** Is inventory being shifted to DTC channels?  
   **A:** David Powers stated they are not forcing inventory away from wholesale to DTC but have improved at allocating inventory to their stores to avoid missed sales.  **[DECK_3371584_21]**  The strong brand momentum means that if wholesale partners run low, consumers turn to their stores and website, benefiting the DTC business.  **[DECK_3371584_21]**  Their marketplace management strategy is working, containing the wholesale channel and flowing demand to DTC, which is boosting gross margins.  **[DECK_3371584_12]** 

5. **HOKA Brand Momentum**  
   **Q:** What drives HOKA's expected Q4 acceleration?  
   **A:** HOKA had a great Q3, and Q4 is expected to be strong due to refill orders fulfilling demand and exciting new product launches.  **[DECK_3371584_11]**  There are no plans for new door expansions, but they will continue to evaluate opportunities based on market performance and sell-through.  **[DECK_3371584_11]** 

6. **New Product Launches**  
   **Q:** Any updates on new product introductions?  
   **A:** David Powers mentioned the upcoming launch of a new "super sneaker" brand developed by Deckers X Lab, featuring sophisticated styling and advanced technologies like carbon plates and modern materials, priced above **$200**.  **[DECK_3371584_22]**  They are excited about its potential and plan a soft launch in the coming weeks.  **[DECK_3371584_22]** 

7. **Addressable Market Expansion**  
   **Q:** How has UGG's addressable market changed?  
   **A:** The total addressable market for UGG has increased as the brand is adopted for different use cases beyond boots, including sneakers and hybrid products.  **[DECK_3371584_16]**  A younger demographic is embracing the brand, and international markets are growing at a faster rate, expanding growth opportunities.  **[DECK_3371584_15]** **[DECK_3371584_16]** 

8. **Order Timing Shifts**  
   **Q:** Were there timing shifts affecting Q3 and Q4?  
   **A:** Some wholesale deliveries occurred earlier in Q3, slightly impacting Q4.  **[DECK_3371584_14]**  The strong sell-through in Q3 led to business expected in Q4 happening sooner, but the full-year outlook was raised to reflect this strength.  **[DECK_3371584_14]** 

9. **Performance-Related Compensation**  
   **Q:** How will strong performance affect bonuses?  
   **A:** Due to the strong performance in FY24, there is an increase in performance-related compensation.  **[DECK_3371584_24]**  This will reset to approved budget levels in FY25.  **[DECK_3371584_24]** 

94489d93329556af4e8b7a3e89258dd3f82d053106e1e50aaffad921c2452299

1. **Capital Allocation Strategy**  
   **Q:** How will you use your $1.4 billion cash balance?  
   **A:** We have a healthy cash balance of **$1.4 billion**  **[DECK_3394334_12]** , and our focus remains on organic growth with our existing brands like HOKA and UGG, as well as reactivating Teva.  **[DECK_3394334_12]**  M&A is not currently on the radar due to integration challenges and valuations.  **[DECK_3394334_12]**  While we are committed to share repurchases, we also consider issuing a dividend, which is discussed with our Board but nothing is announced yet.  **[DECK_3394334_12]** 

2. **Revenue Guidance and Outlook**  
   **Q:** How should we think about revenue growth for the rest of the year?  
   **A:** We're holding our full-year revenue growth guidance at **10%**.  **[DECK_3394334_13]**  Q1 was our strongest percentage growth quarter, and we expect growth rates to slow in the coming quarters due to tougher comparisons.  **[DECK_3394334_13]**  However, we're still anticipating topline growth around **10%** for the remainder of the year.  **[DECK_3394334_13]** 

3. **Gross Margin and Freight Impact**  
   **Q:** What impact will freight costs have on gross margins?  
   **A:** In Q1, we saw a **560 basis point** increase in gross margin, with **80 basis points** coming from freight benefits.  **[DECK_3394334_14]**  However, freight is now becoming a headwind, and we expect a negative impact of **80 basis points** on gross margin over the next three quarters.  **[DECK_3394334_14]**  Additionally, margin expansion and brand mix contributed **250 basis points**, and full-price selling added another **250 basis points** in Q1.  **[DECK_3394334_14]** 

4. **HOKA Growth Outlook**  
   **Q:** Can you elaborate on HOKA's momentum and 20% growth plans?  
   **A:** Our HOKA brand continues to show strong momentum despite mixed industry data.  **[DECK_3394334_10]**  We build brands for long-term health and focus on sustainable growth.  **[DECK_3394334_10]**  FY '25 will be a year of wholesale growth for HOKA, with expanded distribution points while maintaining a balance with our direct-to-consumer (DTC) channel.  **[DECK_3394334_10]**  We're not chasing numbers but aiming for sustainable, profitable growth.  **[DECK_3394334_10]** 

5. **SG&A Investment Strategy**  
   **Q:** Why are you increasing SG&A spending?  
   **A:** Margin expansion allows us to invest in building global brand awareness while still delivering exceptional profitability.  **[DECK_3394334_18]**  We're investing in marketing to support new product launches and to drive global awareness, especially as competition increases.  **[DECK_3394334_18]**  We're also building our teams and infrastructure to support continued growth.  **[DECK_3394334_18]** 

6. **Distribution Expansion**  
   **Q:** What new channels or partners are you pursuing for HOKA and UGG?  
   **A:** We're expanding with key partners domestically and internationally for HOKA, including DSG, JD in the U.S., Europe, and Asia, Intersport in Europe, Foot Locker, Topsports in China, and Sport Chek in Canada.  **[DECK_3394334_17]**  We're also planning selective store openings for both UGG and HOKA globally, focusing on strategic growth.  **[DECK_3394334_17]** 

7. **HOKA Apparel Expansion**  
   **Q:** How is the HOKA apparel launch progressing?  
   **A:** The recent Airolite launch is performing well in limited distribution.  **[DECK_3394334_13]**  However, creating a compelling and innovative apparel offering is a key priority.  **[DECK_3394334_13]**  We see a tremendous opportunity to disrupt the apparel category and are investing in leadership and infrastructure to support these efforts over the coming years.  **[DECK_3394334_13]** 

85986652a5de67f0434446dae4b0815a72a27c5f1405ba9913d66b890a0a6e01

1. **International Growth Opportunities**  
   **Q:** How are you approaching UGG and HOKA's international growth and margin potential?  
   **A:** Deckers sees significant international opportunities for both UGG and HOKA, aiming for international growth to outpace the U.S. over time. Currently, **one-third of their business is international**, with **50% from Europe** and **35% from Asia Pacific**. They are investing in building brand awareness, selectively expanding distribution with key partners, and accelerating growth internationally. While FY24 saw extraordinary gross margin expansion, they expect margins to normalize in FY25 but remain strong.  **[DECK_3390589_16]** 

2. **HOKA's DTC and Wholesale Strategy**  
   **Q:** How should we think about HOKA's wholesale growth versus DTC growth?  
   **A:** HOKA continues to experience healthy demand from wholesale partners but is keeping wholesale channels tight to drive more revenue to DTC, which is expected to **grow faster than wholesale**. They plan to open select doors with strategic partners, focusing on international markets. Recent product launches like **Skyward X** are performing beyond expectations, further bolstering DTC growth.  **[DECK_3390589_12]** 

3. **UGG's Growth Outlook**  
   **Q:** What gives you confidence in mid-single-digit growth for UGG after a big year?  
   **A:** Confidence stems from strong demand among **18- to 24-year-old consumers**, the success of reimagined classic styles, and a healthy full-price business with less markdowns. UGG saw an **18% revenue increase** despite low single-digit unit growth, indicating strong pricing power. They expect continued growth in DTC and are optimistic about international expansion.  **[DECK_3390589_14]** 

4. **DTC Profitability and Mix Shift**  
   **Q:** Is the high DTC profitability sustainable, and will the margin mix shift continue?  
   **A:** While FY24 benefited from exceptional gross margins due to full-price selling and a channel mix shift to DTC, they expect some normalization in FY25. However, DTC remains highly profitable, and they aim to increase its proportion over time, though not at the same pace as in FY24 due to strategic wholesale expansion.  **[DECK_3390589_17]** 

5. **Product Innovation and Launch Strategy**  
   **Q:** How are you approaching HOKA's product launches and catering to new consumers?  
   **A:** HOKA prioritizes its performance business while welcoming new consumers adopting the brand for lifestyle use. They continue to innovate with key products like the **Bondi** and **Clifton**, and have significant launches planned, including a new trail franchise and the **Skyflow** run specialty exclusive. They believe running is becoming the new streetwear, and they'll capitalize on this trend while maintaining performance integrity.  **[DECK_3390589_21]** ,   

6. **SG&A Investment and Reinvestment**  
   **Q:** Where are you in the SG&A reinvestment cycle, and will you reinvest upside?  
   **A:** SG&A as a percentage of revenue is expected to remain flat in FY25 after prior deleverage, reflecting ongoing investments in talent, infrastructure, and distribution to support growth. They are carefully managing expenses to align with growth and will continue to monitor opportunities for reinvestment if revenues exceed expectations.  **[DECK_3390589_20]** 

7. **Impact of Prior Year Benefits on Guidance**  
   **Q:** Are you guiding differently this year after outperforming prior guidance?  
   **A:** They acknowledge that the benefits experienced in FY24, such as full-price selling, price increases, and a scarcity model driving DTC traffic, may not repeat at the same level in FY25. The current guidance reflects anticipation of a more normalized environment without the same level of favorable factors. They are cautious due to uncertainties in the promotional landscape.  **[DECK_3390589_19]** 

8. **Meeting Unfulfilled UGG Demand**  
   **Q:** How does unfilled UGG demand from last year affect this year's outlook?  
   **A:** Some of the demand lost in December due to stockouts was captured in Q4 as inventory levels improved. While there's opportunity this year, the environment remains challenging. They plan to maintain high levels of full-price sales without new price increases and will strategically manage wholesale and DTC channels. Comping an **18% growth** is challenging, but they are optimistic about their product assortment.  **[DECK_3390589_18]** 

9. **Breakdown of Q4 Wholesale and DTC by Brand**  
   **Q:** Can you provide Q4 wholesale and DTC figures by brand?  
   **A:** In Q4 FY24, global wholesale and distributor combined sales were approximately **$139 million for UGG**, **$350 million for HOKA**, **$46 million for Teva**, and about **$5 million for the other brands**.  **[DECK_3390589_17]** 

10. **UGG Classics vs New Styles Growth**  
    **Q:** How is UGG balancing growth between classic styles and new products?  
    **A:** Classics remain a steady part of UGG's business at around **25-30%**, with consistent sell-through and margins. Growth is driven by reimagined classics and new styles resonating with younger consumers. They have a strong pipeline of innovative products, including hybrid slipper/sandal models, and see excitement in the men's segment as well.  **[DECK_3390589_15]** 

436dbd51e232c0ea03a76c6c3fd1624b6986fe66ee017edbb15a053c6a91d897

c35692b60e85cbcecd655310492453f3d188adede30d5f9a916f41bae61e2fd7

1. **HOKA Growth Guidance**  
   **Q:** HOKA guidance raised to 24%; expectations for second half?  
   **A:** Management increased HOKA's growth guidance to **24%** for the year, noting that while first-half growth was **32%**, they anticipate a settling of growth in the second half as earlier wholesale expansion moderates.  **[DECK_3403677_10]**  They remain confident due to better-than-expected performance and focus on controlled, strategic distribution.  **[DECK_3403677_10]** 

2. **Margin Outlook**  
   **Q:** Are you seeing pullback in full-price selling affecting margins?  
   **A:** Management is cautiously assuming increased promotions in the second half due to macroeconomic challenges.  **[DECK_3403677_10]**  There is more product in the channel compared to last year, which may lead to promotions to manage inventory ahead of new product introductions in Q4 and Q1 FY'26.  **[DECK_3403677_10]** 

3. **International Expansion**  
   **Q:** What's the outlook for HOKA's international growth?  
   **A:** HOKA's international business is **2 to 3 years** behind the U.S. but has significant upside.  **[DECK_3403677_11]**  Management aims for a **50-50 split** between U.S. and international sales in the long term.  **[DECK_3403677_11]**  They are pleased with strong growth in Europe and are encouraged by progress in Asia and China.  **[DECK_3403677_11]** 

4. **Inventory and Gross Margin**  
   **Q:** How will promotions and inventory affect gross margin?  
   **A:** Management acknowledged a **70 basis point** freight headwind impacting gross margin in Q2 but noted overall improvement due to product mix.  **[DECK_3403677_12]**  They anticipate increased promotions in the second half, especially for key styles like Clifton and Bondi, to manage inventory and launch new models.  **[DECK_3403677_12]** 

5. **Early Wholesale Shipments**  
   **Q:** Are earlier wholesale shipments affecting future quarters?  
   **A:** Earlier wholesale shipments, particularly for UGG, contributed to higher growth in Q2 as partners wanted product sooner.  **[DECK_3403677_13]**  This may impact the second half due to more inventory in the channel, but management remains disciplined in marketplace management.  **[DECK_3403677_13]** 

6. **Performance in China**  
   **Q:** How is China performing amid tough conditions?  
   **A:** Despite a challenging economic climate, the brands are performing well in China, connecting with consumers and communities.  **[DECK_3403677_14]**  HOKA is now a top-five brand in major races, and there's increasing store footprint.  **[DECK_3403677_14]**  Asia continues to grow at strong double digits.  **[DECK_3403677_14]** 

7. **New Product Launches**  
   **Q:** What's the impact of new product introductions?  
   **A:** The company delivered significant newness, including upgrades to major products like Bondi (launching in January) and Clifton (in April).  **[DECK_3403677_11]**  They also introduced new styles in lifestyle and cold-weather categories, with positive trade reactions.  **[DECK_3403677_11]** 

8. **Door Expansion Strategy**  
   **Q:** What's the strategy for expanding retail doors?  
   **A:** Management is selective and diligent in expansion, focusing on productivity before adding doors.  **[DECK_3403677_15]**  They continue to perform and open doors strategically with partners like Dick's Sporting Goods and Foot Locker.  **[DECK_3403677_15]** 

9. **Demand Creation Spending**  
   **Q:** How are you investing in marketing for HOKA and UGG?  
   **A:** The company is increasing marketing spend as a percentage of revenue, investing in demand creation for both HOKA and UGG.  **[DECK_3403677_15]**  They are creating localized content to resonate with international consumers and leveraging gross margin improvements to fund this investment.  **[DECK_3403677_15]** 

10. **Tariff Considerations**  
    **Q:** How are you considering potential tariff impacts?  
    **A:** Management stated it's too early to assess potential tariff impacts given uncertainties, and any effects are not currently figured into guidance.  **[DECK_3403677_12]** 

a018b08a5f9b6b731fea45a0b6118e575bdfe8bb7656b62dc81a0de11789d569

- **Deckers does not expect to achieve the same level of gross margin expansion in FY 2025 as in FY 2024**, due to fewer benefits from price increases and full-price selling, moving back to more normalized margins.  **[DECK_3390589_19]** **[DECK_3390589_16]** **[DECK_3390589_17]** **[DECK_3390589_14]** **[DECK_3390589_18]**
- **The company anticipates a challenging promotional environment in FY 2025**, with uncertainties that could negatively impact profitability and margins.  **[DECK_3390589_19]** **[DECK_3390589_18]**
- **Expansion into wholesale channels may put pressure on direct-to-consumer growth and margins**, as opening up wholesale could dilute the benefits experienced from the scarcity model and favorable channel mix in FY 2024.  **[DECK_3390589_19]** **[DECK_3390589_17]** **[DECK_3390589_18]**

560f6696c9f5fff649b825e2a661f51f82f645f9f79da6555e576e472a2a04b9

- **Deckers Brands reported an exceptional quarter with record growth in the UGG brand, driven by a strong innovation pipeline and global consumer resonance, marking what the CEO describes as "the most exciting quarter I've ever seen for UGG with regard to global brand heat".**  **[DECK_3371584_12]**
- **The company's strategic focus on managing its marketplace by prioritizing Direct-to-Consumer channels over wholesale is yielding significant benefits, notably in gross margin expansion, and is a model they plan to reinforce moving forward.**  **[DECK_3371584_12]**
- **Deckers remains confident in achieving its long-term targets, including potential revenue of $5-6 billion and 50% DTC mix, due to strong performance across brands and regions, particularly with the UGG and HOKA brands, and the strength of international markets.**  **[DECK_3371584_13]**

5639448273665de06ec3e53c26f7bc594a3fb3d17ac3a60a274c56ecdb64485e

- **Strong double-digit growth in Asia**, particularly in **China**, where their brands are performing well despite challenging economic conditions, with Asia expected to continue growing at strong double digits.  **[DECK_3403677_18]**
- The company aims for **HOKA** to achieve a **50-50 split between U.S. and international markets**, indicating significant growth potential internationally as brand awareness is currently in the **mid-20s** internationally versus **mid-40s** in the U.S., with international markets **2-3 years behind** the U.S.  **[DECK_3403677_12]**
- **High-priced Pinnacle products** like the **Cielo X1** and **Skyward X** have **exceeded expectations**, successfully entering the **$200+ price point** for the first time, contributing to **top-line growth** and **improving the margin profile**.  **[DECK_3403677_9]**

e4311440f12cee33a1a5e4d941c02209b413f7552709be18cec2d66bc3f72615

- **The company expects a more promotional environment going forward**, which could pressure gross margins due to lower levels of full-price selling. ( **[DECK_3394334_15]** ,  **[DECK_3394334_14]** ,  **[DECK_3394334_10]** )
- **Freight costs are anticipated to become a headwind**, with a negative impact of approximately **80 basis points on gross margin** over the next three quarters. ( **[DECK_3394334_5]** ,  **[DECK_3394334_14]** )
- **SG&A expenses are projected to increase** as the company invests in marketing and infrastructure, potentially reducing operating margins. ( **[DECK_3394334_19]** ,  **[DECK_3394334_18]** )

f5a1f13e661e6d63f1b49a6af8f5d5edd66dd248a7bbb274b792411a70d7bd23

- **Strong Brand Momentum with Confident Full-Year Guidance:** Deckers remains confident in its full-year guidance, with **strong brand performance** and **key product launches selling very strongly**. The brands are **"strong and in demand,"** and no major issues are anticipated for the balance of the year.  **[DECK_3394334_10]**
- **Strategic Wholesale Expansion Driving Growth and Customer Acquisition:** Fiscal year 2025 is **"a year of wholesale growth,"** with Deckers **expanding points of distribution** and **gaining shelf space**, while maintaining balance with direct-to-consumer channels. This strategy helps to **bring in new customers through wholesale**, who then **migrate to DTC**, supporting sustainable, long-term growth.  **[DECK_3394334_10]** **[DECK_3394334_19]**
- **Innovation and New Product Launches Fueling Growth:** The launch of new products like the **Skyflow**, featuring **incredible innovation** at a more commercial price point, is expected to add to key sellers and reduce reliance on existing franchises. Upcoming launches, such as the **updated Bondi** model in Q4, along with a **new segmentation approach**, are anticipated to drive growth and have received **very strong** responses from consumers.  **[DECK_3394334_11]**

bfa956e1a4803e0de66475bdcd95ec02f9e9a1736b65954b230932805c2a60c4

DECKERS OUTDOOR (DECK)

Analyst Earnings Quarterly Reports

Executives

Stefano Caroti

Angela Ogbechie

Anne Spangenberg

Marco Ellerker

Robin Spring-Green

Steven Fasching

Thomas Garcia

Board Members

Bonita Stewart

Cindy Davis

David Burwick

Juan Figuereo

Lauri Shanahan

Maha Ibrahim

Nelson Chan

Patrick Grismer

Victor Luis

Analyst Coverage