Total Revenue (Net Sales)

+6.5% (from $959.76M to $1,021.78M)

Total Revenue grew by 6.5% YoY, reflecting a continuation of the moderate growth trend seen in previous quarters. This increase is attributed to ongoing improvements in product mix, pricing initiatives, and channel performance that built on prior period momentum. " "

Net Income

+18.7% (from $127.55M to $151.41M)

Net Income increased by 18.7% YoY, outpacing revenue growth. This stronger profitability is likely the result of improved gross margins and operating leverage as cost controls and higher-margin product strategies from previous periods continued to deliver benefits. " "

Basic EPS

80% decline (from $5.01 to $1.00)

Basic EPS fell approximately 80% YoY despite higher net income, indicating a substantial dilution effect. The large drop suggests that a significant increase in shares outstanding occurred—possibly from new equity issuance or convertible instrument activity—that contrasts with the earlier period where EPS benefited from share repurchases. " "

Operating Income

+20.6% (from $144.26M to $173.93M)

Operating Income rose by 20.6% YoY, driven by a combination of revenue growth, cost efficiencies, and improved gross margins. These factors, such as a favorable product mix and disciplined expense management that were emerging in previous periods, strengthened the operating results in Q4 2025. " "

Net Cash Provided by Operating Activities

More negative (from -$28.67M to -$72.99M)

Net cash flow from operations deteriorated, turning more negative despite higher profitability. This decline likely reflects greater investments in working capital—such as higher inventory purchases and receivables—offsetting the improved non-cash earnings adjustments observed in the previous period. " "

Cash & Cash Equivalents

+25.7% (from $1,502.05M to $1,889.19M)

Cash & Cash Equivalents increased by 25.7% YoY, which is partly the result of favorable financing activities and improved liquidity management. This benefit was enough to boost the overall cash position even as operating cash generation relaxed, building on the robust inflows seen in earlier quarters. " "

Revenue growth

FY 2025

12% growth "

15% growth – “just above $4.9B” implied "

raised

HOKA Brand Growth

FY 2025

no prior guidance

24% year-over-year "

no prior guidance

Gross Margin

FY 2025

no prior guidance

at or slightly better than 57% "

no prior guidance

SG&A

FY 2025

no prior guidance

Approximately 35% of revenue "

no prior guidance

Operating Margin

FY 2025

no prior guidance

Approximately 22% "

no prior guidance

Effective Tax Rate

FY 2025

no prior guidance

Approximately 23.5% "

no prior guidance

Diluted EPS

FY 2025

no prior guidance

$5.75 to $5.80 "

no prior guidance

FX Impact

FY 2025

no prior guidance

50 basis point headwind on Q4 gross margin "

no prior guidance

Promotions & Closeouts

FY 2025

no prior guidance

Up to 100 basis points impact "

no prior guidance

Freight Costs

FY 2025

no prior guidance

150 basis point headwind "

no prior guidance

Revenue

Q1 2026

no prior guidance

$890 million to $910 million "

no prior guidance

HOKA Brand Growth

Q1 2026

no prior guidance

At least low double digits "

no prior guidance

UGG Brand Growth

Q1 2026

no prior guidance

At least mid-single digits "

no prior guidance

Gross Margin

Q1 2026

no prior guidance

Down approximately 250 basis points versus last year "

no prior guidance

SG&A

Q1 2026

no prior guidance

Expected to increase slightly faster than revenue "

no prior guidance

Diluted EPS

Q1 2026

no prior guidance

$0.62 to $0.67 " (with last year's guidance noted as $0.75 " )

no prior guidance

Wholesale Expansion and Distribution Strategy

Mentioned consistently across Q1–Q3 as a controlled, selective expansion – balancing new door openings with marketplace discipline and maintaining a 50-50 DTC/wholesale mix. " " " " " "

In Q4 2025, the approach remains strategic and gradual with continued domestic and international expansion, emphasizing systematic growth and selective partner additions. " "

Consistent focus on executing controlled expansion. The sentiment remains disciplined with an enduring focus on balancing channels, showing no dramatic shift but reinforcing the long‐term strategy.

US Direct-to-Consumer (DTC) Channel Dynamics

Q1 and Q2 called out robust DTC growth driven by strong consumer demand and brand loyalty, while Q3 highlighted global growth but with less focus on U.S.-specific dynamics. " " "

Q4 2025 noted near-term challenges in the U.S. DTC segment – a slight decline due in part to consumers shifting to in-store experiences and increased promotions, although the long-term target of a balanced channel mix is reiterated. " " "

Shift in sentiment: Previously robust DTC performance now faces near-term headwinds in the U.S.; however, the long-term strategy and potential for recovery remain intact, reflecting a cautious short-term outlook with sustained optimism over time.

International Market Growth and Global Resilience

Across Q1–Q3, there was a strong emphasis on expanding global presence with improving brand awareness (especially for HOKA) and resilient performance in key regions like China, Europe, and Asia-Pacific. " " " "

Q4 2025 reinforces a bullish view with accelerated international growth – HOKA’s international revenue gains and continued confidence in UGG’s global adaptability, underscoring robust global resilience amidst economic challenges. " " "

Consistently bullish: Global expansion remains a cornerstone, with sentiment becoming even more positive in Q4 as international market share increases and resilience is highlighted despite macro uncertainties.

Product Innovation and Pipeline Development

Q1–Q3 earnings calls consistently highlighted innovation with successful launches (e.g., Cielo X1, Skyward X, Bondi 9) and a robust future product pipeline, supporting sustained growth and differentiation. " " " "

Q4 2025 continues the innovation narrative with enhancements in existing franchises (e.g., upgrades to Bondi, Clifton) and new introductions (e.g., Skyflow), along with investments in consumer engagement like a flagship experience center. " "

Steady innovation momentum: The company has maintained its emphasis on innovation, adding new product developments and consumer engagement initiatives. The sentiment remains positive and forward-looking, backing future growth.

Gross Margin and Cost Pressure Management

Q1 reported strong margin improvements driven by favorable mix and lower freight rates while Q2 and Q3 also noted benefits from product mix; however, earlier periods recognized that external cost pressures might emerge. " "

Q4 2025 shows a mixed picture: while there are incremental improvements in gross margin from full-price selling, upcoming headwinds from increased freight costs, tariff impacts, and promotional pressures have been emphasized. " "

Transition from bullish to cautious: Earlier periods celebrated solid margins, but recent commentary in Q4 flags rising external cost pressures, shifting sentiment to caution about future margin dilution amid external headwinds.

Inventory Management Dynamics (Shift from Stock-outs to Buildup Risks)

Q1 discussed a healthy and balanced inventory position; Q2 and Q3 started signaling a shift – from struggling with stock-outs to an increased focus on managing higher inventory levels due to earlier wholesale shipments. " " "

In Q4 2025, management is intentionally increasing inventory (to mitigate risks tied to tariffs and distribution center transitions) while maintaining a lean approach, indicating an evolving strategy to balance immediate demand with buildup risks. " "

Evolving focus: Sentiment has shifted from mitigating stock-outs to carefully managing potential inventory buildup. The strategy adapts to external risks, reflecting proactive adjustments while keeping a disciplined inventory policy.

Emerging Tariff Impact on Profitability

Mostly absent in Q1 and Q3; Q2 mentioned uncertainty with tariffs not factored into guidance, reflecting low focus on this risk in earlier periods. "

Q4 2025 brings a heightened focus on tariffs with an estimated impact of up to $150 million in added COGS for FY 2026; clear mitigation strategies via selective pricing and cost sharing are now being emphasized. " " "

New and more concerning: The emerging tariff risk has become a focal point in Q4, shifting sentiment from uncertainty (or minimal attention) to a more cautious, risk-aware tone regarding future profitability.

Reduced Emphasis on SG&A Expense and Freight Cost Headwinds

Q1 and Q2 focused on strategic SG&A investments to drive growth while acknowledging some freight benefits; Q3 reported rising SG&A spend as a percentage of revenue due to increased marketing and headcount. " " "

In Q4 2025, despite a lower SG&A expense ratio compared to prior periods (reflecting improved efficiency), freight cost headwinds are underscored as a significant risk, with expectations of higher ocean freight rates impacting future margins. " " "

Mixed outlook: While efforts to curb SG&A as a percentage of revenue are evident, rising freight costs have increasingly become a concern. The sentiment shows disciplined cost management alongside caution about growing external freight pressures.