| Metric [USD Million] | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **UGG Brand**        | 930.4  **[0000910521-23-000002_deckex991pressrelease-1231.htm:0]**  | 314.3  **[0000910521-23-000014_deckex991pressrelease-3312.htm:0]**  | 195.5  **[0000910521-23-000032_deckex991pressrelease-6302.htm:0]**  | 610.5  **[0000910521-23-000039_deckex991pressrelease-9302.htm:0]**  | 402.9  **[0000910521-24-000003_deckex991pressrelease-1231.htm:0]**  | 361.3  **[0000910521-24-000015_deckex991pressrelease-3312.htm:0]**  | 223.0  **[0000910521-24-000037_deckex991pressrelease-6302.htm:0]**  | 689.9  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]**  |
| **HOKA Brand**       | 352.1  **[0000910521-23-000002_deckex991pressrelease-1231.htm:0]**  | 397.7  **[0000910521-23-000014_deckex991pressrelease-3312.htm:0]**  | 420.5  **[0000910521-23-000032_deckex991pressrelease-6302.htm:0]**  | 424.0  **[0000910521-23-000039_deckex991pressrelease-9302.htm:0]**  | 252.2  **[0000910521-24-000003_deckex991pressrelease-1231.htm:0]**  | 533.0  **[0000910521-24-000015_deckex991pressrelease-3312.htm:0]**  | 545.2  **[0000910521-24-000037_deckex991pressrelease-6302.htm:0]**  | 570.9  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]**  |
| **Teva Brand**       | 30.5  **[0000910521-23-000002_deckex991pressrelease-1231.htm:0]**   | 62.8  **[0000910521-23-000014_deckex991pressrelease-3312.htm:0]**   | 48.4  **[0000910521-23-000032_deckex991pressrelease-6302.htm:0]**   | 21.5  **[0000910521-23-000039_deckex991pressrelease-9302.htm:0]**   | 20.4  **[0000910521-24-000003_deckex991pressrelease-1231.htm:0]**   | 53.0  **[0000910521-24-000015_deckex991pressrelease-3312.htm:0]**   | 46.3  **[0000910521-24-000037_deckex991pressrelease-6302.htm:0]**   | 22.0  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]**   |
| **Sanuk Brand**      | 5.6  **[0000910521-23-000002_deckex991pressrelease-1231.htm:0]**    | 10.7  **[0000910521-23-000014_deckex991pressrelease-3312.htm:0]**   | 9.6  **[0000910521-23-000032_deckex991pressrelease-6302.htm:0]**    | 5.4  **[0000910521-23-000039_deckex991pressrelease-9302.htm:0]**    | 2.1  **[0000910521-24-000003_deckex991pressrelease-1231.htm:0]**    | 6.5  **[0000910521-24-000015_deckex991pressrelease-3312.htm:0]**    | 6.9  **[0000910521-24-000037_deckex991pressrelease-6302.htm:0]**    | 2.8  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]**    |
| **Other Brands**     | 26.9  **[0000910521-23-000002_deckex991pressrelease-1231.htm:0]**   | 6.0  **[0000910521-23-000014_deckex991pressrelease-3312.htm:0]**    | 1.8  **[0000910521-23-000032_deckex991pressrelease-6302.htm:0]**    | 30.6  **[0000910521-23-000039_deckex991pressrelease-9302.htm:0]**   | 24.5  **[0000910521-24-000003_deckex991pressrelease-1231.htm:0]**   | 6.0  **[0000910521-24-000015_deckex991pressrelease-3312.htm:0]**    | 4.0  **[0000910521-24-000037_deckex991pressrelease-6302.htm:0]**    | 25.8  **[0000910521-24-000056_deckex991pressrelease-9302.htm:0]**   |
| **Total Revenue**    | 1,346  **[0000910521-23-000002_deckex991pressrelease-1231.htm:0]**  | N/A         | 825  **[0000910521-23-000032_deckex991pressrelease-6302.htm:0]**    | 1,092  **[DECK_3362190_6]**  | 1,560  **[0000910521-24-000003_deckex991pressrelease-1231.htm:0]**  | 959.8  **[0000910521-24-000015_deckex991pressrelease-3312.htm:0]**  | 825  **[DECK_3394334_1]**    | 1,311  **[DECK_3403677_6]**  |

63988a84c32d425a3f22f71c0f759a2bacddf2c341dd5efff467541fbd979996

International Net Sales

Number of Global Retail Stores

Number of HOKA Brand Retail Stores

Number of Concept Stores

d3bc9da072bde103ff8e4bc19fe3e8147ed70cf9af1c1b744ca600176f901f5b

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

Deckers Outdoor Corporation is a global leader in the design, marketing, and distribution of innovative footwear, apparel, and accessories for both everyday casual lifestyle use and high-performance activities **[0000910521-24-000017_deck-20240331.htm:58]**. The company markets its products under six proprietary brands, competing across various markets, including fashion, casual lifestyle, performance, running, and outdoor markets **[0000910521-24-000012_formsdandconflictmineralsr.htm:1]**. Deckers' product offerings include premium footwear, apparel, and accessories, with a strong emphasis on resilience, comfort, and style **[0000910521-24-000017_deck-20240331.htm:5]**.

1. **UGG** - Offers a highly recognized line of premium footwear, apparel, and accessories, known for its resilience and broad demographic appeal **[0000910521-24-000042_deck-20240630.htm:24]**.
2. **HOKA** - Provides performance footwear with enhanced cushioning and stability, appealing to athletes and everyday users **[0000910521-24-000059_deck-20240930.htm:29]**.
3. **Teva** - Known for sport sandals and outdoor footwear, catering to active and outdoor enthusiasts **[0000910521-24-000017_deck-20240331.htm:60]**.
4. **Sanuk** - Focuses on casual shoes and sandals with an emphasis on comfort and sustainability **[0000910521-24-000017_deck-20240331.htm:60]**.
5. **Koolaburra** - Targets value-oriented consumers with casual footwear offerings **[0000910521-24-000017_deck-20240331.htm:60]**.
6. **AHNU** - Combines high-performance technology with style in its footwear products **[0000910521-24-000017_deck-20240331.htm:60]**.

a453199cd863838ec63ddec85c147bf611571995f027a8c72c65d4d975db3259

1. With earlier wholesale shipments contributing to revenue growth in Q2, how do you anticipate this will impact your third-quarter growth, and are you concerned about potential pull-forward effects that might soften future results?
2. Inventory levels increased 7% compared to last year; how are you managing the risk of excess inventory, especially considering uncertainties in consumer demand and the potential for a more promotional retail environment in the second half?
3. Given the expected moderation in UGG's growth to mid-single digits after achieving 13% growth in the first half, what factors contribute to this deceleration, and could there be upside potential based on new product introductions?
4. With plans to expand HOKA's distribution through opening more doors, how are you ensuring that this expansion doesn't dilute the brand's premium positioning and cannibalize existing channels?
5. Considering the possibility of future tariffs not factored into your current guidance, what strategies do you have in place to mitigate potential impacts on costs and margins if tariffs are implemented?

44d4922f08d6fa7e426bcd3244681dc7667bf202446e2b5790f54df5d10b74b3

da8d260ccce0d107294eb4a887e3ba5ca8be0c3b456a6596220f25f5e4e30b82

### Q2 2025 Earnings Call
- **Issued Period**: Q2 2025
- **Guided Period**: FY 2025
- **Guidance**:
  - **Revenue Growth**: Approximately **12%** above last year, reaching **$4.8 billion**.
  - **Brand Growth**:
    - **HOKA**: Expected to increase approximately **24%**.
    - **UGG**: Expected to grow in the mid-single digits.
  - **Gross Margin**: **55% to 55.5%**.
  - **SG&A**: Approximately **35%** of revenue.
  - **Operating Margin**: **20% to 20.5%**.
  - **Effective Tax Rate**: **23% to 23.5%**.
  - **Diluted EPS**: **$5.15 to $5.25**  **[DECK_3403677_7]** .

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  - **Diluted EPS**: **$29.75 to $30.65**.
  - **Operating Margin**: **19.5% to 20%**.
  - **SG&A**: **34% to 34.5%**.
  - **Effective Tax Rate**: **22% to 23%**.
  - **Revenue Growth**: Approximately **10%** to **$4.7 billion**.
  - **Gross Margin**: Approximately **54%**.
  - **Brand-Specific Growth**:
    - **HOKA**: Approximately **20%**.
    - **UGG**: Mid-single-digit growth  **[DECK_3394334_7]** **[DECK_3394334_6]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  - **Revenue Growth**: Approximately **10%** to **$4.7 billion**.
  - **HOKA Growth**: Approximately **20%**.
  - **UGG Growth**: Mid-single digits.
  - **Gross Margins**: Approximately **53.5%**.
  - **SG&A**: Approximately **34%** of revenue.
  - **Operating Margin**: Approximately **19.5%**.
  - **Effective Tax Rate**: **22% to 23%**.
  - **Diluted EPS**: **$29.50 to $30**.
  - **Capital Expenditures**: **$115 million to $125 million**  **[DECK_3390589_9]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Operating Margin**: Approximately **20%**.
  - **Effective Tax Rate**: Approximately **22%**.
  - **Diluted EPS**: **$26.25 to $26.50**.
  - **Full Year Revenue**: Approximately **$4.15 billion**.
  - **UGG Revenue Growth**: Low double digits.
  - **HOKA Revenue Growth**: Approximately **25%**.
  - **Gross Margin**: Approximately **54.5%**.
  - **SG&A**: Approximately **34.5%** of sales  **[DECK_3371584_9]** **[DECK_3371584_8]** .

52c732687158fe688c35aa1dcfc98760cd9ad8b3a7297e5ef0997b2d3301b1ee

- 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

**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

- **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

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

b421861e581480fd9708888f7c832f984e5e8d26d1f05795fb075b7e21632584

**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

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **July 27, 2022**  **[0000910521-24-000059_deck-20240930.htm:49]**  |
| End Date/Duration        | Not specified  **[0000910521-24-000059_deck-20240930.htm:49]**   |
| Total additional amount  | **$1,200,000**  **[0000910521-24-000059_deck-20240930.htm:49]**  |
| Remaining authorization amount | **$671,785**  **[0000910521-24-000059_deck-20240930.htm:49]** **[0000910521-24-000059_deck-20240930.htm:22]** **[0000910521-24-000059_deck-20240930.htm:42]**  |
| Details                  | The program may be suspended at any time at the company's discretion.  **[0000910521-24-000059_deck-20240930.htm:49]**  |

17f8549137e4a8cc02a79d65a7d47b89a48742f9dc790d49e23501a5e263481c

| Name               | Position                                    | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|---------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dave Powers        | Chief Executive Officer, President, Director| June 2016          | Dave Powers was appointed as CEO in June 2016 and joined the Board at that time. He was appointed President in March 2015. He announced his intention to retire effective August 1, 2024  **[0000910521-24-000017_deck-20240331.htm:5]** **[0000910521-24-000025_deck-20240712.htm:46]** **[0000910521-24-000031_deck-20240723.htm:46]** **[0000910521-24-000031_deck-20240723.htm:26]** **[0000910521-24-000025_deck-20240712.htm:26]** . |
| Stefano Caroti     | Chief Executive Officer, President          | August 1, 2024     | Stefano Caroti was appointed Chief Commercial Officer in April 2023. He will become CEO and President effective August 1, 2024. He has over 32 years of industry experience  **[0000910521-24-000025_deck-20240712.htm:20]** **[0000910521-24-000031_deck-20240723.htm:20]** **[0000910521-24-000031_deck-20240723.htm:47]** **[0000910521-24-000025_deck-20240712.htm:47]** **[0000910521-24-000017_deck-20240331.htm:5]** **[0000910521-24-000025_deck-20240712.htm:0]** .          |
| Steven J. Fasching | Chief Financial Officer                     | June 2018          | Steven J. Fasching was appointed CFO in June 2018. He has over 30 years of experience in financial and strategic planning  **[0000910521-24-000025_deck-20240712.htm:46]** **[0000910521-24-000031_deck-20240723.htm:46]** **[0000910521-23-000025_deck-20230724.htm:44]** .                                                                    |
| Angela Ogbechie    | Chief Supply Chain Officer                  | June 2022          | Angela Ogbechie was appointed Chief Supply Chain Officer in June 2022. She has extensive experience in global demand planning, logistics, distribution, and fulfillment  **[0000910521-24-000025_deck-20240712.htm:47]** **[0000910521-24-000031_deck-20240723.htm:47]** .                           |
| Thomas Garcia      | Chief Administrative Officer, Secretary     | 2021               | Thomas Garcia joined Deckers in 2009 and was promoted to Chief Administrative Officer in 2021. He oversees Legal, ESG, Strategy, and Communications  **[0000910521-24-000025_deck-20240712.htm:47]** **[0000910521-24-000031_deck-20240723.htm:47]** **[0000910521-23-000025_deck-20230724.htm:45]** **[0000910521-24-000048_deck09132024exhibit32.htm:0]** .                                       |
| Anne Spangenberg   | President of Fashion Lifestyle              | July 2022          | Anne Spangenberg was appointed President of Fashion Lifestyle Group in July 2022. She has over 25 years of experience in global consumer-focused omni-channel retail  **[0000910521-24-000031_deck-20240723.htm:47]** **[0000910521-24-000025_deck-20240712.htm:47]** **[0000910521-23-000025_deck-20230724.htm:45]** .                          |
| Robin Green        | President of HOKA                           | February 2024      | Robin Green was appointed President of HOKA in February 2024. She has over 20 years of experience in the global consumer products landscape  **[0000910521-24-000025_deck-20240712.htm:48]** **[0000910521-24-000031_deck-20240723.htm:48]** .                                                    |

89599251bba654b58183c0bc0adc3fe895f72906023613c9991360c40b72584b

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521caebca712fe59c2892a3a6c68f97f21edfd260ed8a393f7080c3927c2915f

cea5e714e27e495559c2580da524e9f8d148d962fa517dea3357640d4547f88f

9c606a51d91ebc402f1afb05fc5a5835133cfa25e1f1fc206941c3d1530f1806

Domestic

- United States

United States

International

Total Revenue

c9f9c3f77248657603eaefd26fd381b70336a6b700645ecea778abdd4a653dc6

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

f479abe667265444729f421b19a3d92a84110f56be898f37a5c0f20cb443b8c7

739dcea4b49aa9459c8b6d84843af5fc74d2bdeccf67d948532a4d100022dc66

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- **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

c35692b60e85cbcecd655310492453f3d188adede30d5f9a916f41bae61e2fd7

89cfff5c27e1d0319b633f4118d425d2be9929e2db4c8008ecad40853b789ea6

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

- **Gross Margin Expansion May Not Be Sustainable:** Management indicated that the exceptional gross margin increase of **580 basis points to 58.7%** in Q3 was due to factors such as extremely low promotional activity, benefits from UGG pricing actions, and very low freight costs, which **"are above normalized levels and [are] not something we anticipate will repeat to the same degree."**  **[DECK_3371584_9]**
- **Leadership Transition Could Introduce Uncertainty:** The CEO, David Powers, announced his retirement effective August 1, and while his successor is experienced, leadership changes can pose risks to strategic execution and company performance.  **[DECK_3371584_1]**
- **Future Sales May Be Impacted by Inventory Levels and Shipment Timing:** The company acknowledged that low inventory levels on key styles and pulling forward UGG wholesale shipments into Q3 (which typically occurred in Q4) could have a **"small impact on sales in the fourth quarter."**  **[DECK_3371584_9]**

4bde367395487b640c996170ff0ec5d87985937f4d80afc99b5c57dea4f4e996

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

- **Gross margins are expected to decline in the second half** due to increased promotions and markdowns on key styles like the Clifton and Bondi, which could impact profitability  **[DECK_3403677_15]** .
- Despite a **32% growth** in HOKA during the first half, the company anticipates that **HOKA's growth will decelerate in the second half**, aligning with their forecast  **[DECK_3403677_10]** .
- The company's international markets are **2 to 3 years behind the U.S.**, with challenges anticipated in regions like China due to a **"challenging economic climate"**, potentially hindering growth  **[DECK_3403677_12]** **[DECK_3403677_18]** .

9af71e623060a6c757c18ec135d998a5762b0714311ec32681ac12a44fc136e5

- **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

- **Significant international growth opportunities for both HOKA and UGG brands**: Management highlighted that international markets currently represent only about **one-third of total revenue**, and **brand awareness for HOKA is approximately 20 points behind the U.S.**, indicating substantial room for growth. They are investing to accelerate international expansion, particularly in **Europe and Asia**, and see **a lot of upside for us internationally, both in terms of top line as well as margin**.  **[DECK_3390589_16]** **[DECK_3390589_13]**
- **Strong demand and brand heat for UGG among 18- to 24-year-old consumers**: The company is experiencing the **healthiest effect seen in the UGG brand**, with significant demand from the **18- to 24-year-old consumer** segment and **broad-based health of all channels**, including retail stores, e-commerce, and wholesale partners globally. New franchises like the **Golden Star and Venture Days** are contributing to growth. Management expects continued growth for UGG, supported by **high levels of full price sales** and an effective **pull model** in international regions.  **[DECK_3390589_14]** **[DECK_3390589_18]**
- **Increasing focus on higher-margin Direct-to-Consumer (DTC) sales**: Management noted that they are **"always looking at how we can drive a higher proportion of our DTC business, which overall does have a positive accretive impact on the business"**. The company aims to increase DTC sales, which could lead to **margin expansion** and higher profitability, especially as the DTC segment has shown **high contribution margins** compared to wholesale.  **[DECK_3390589_16]** **[DECK_3390589_17]**

d8792c06770d2ca9bd8e608a7469dcd15cb527d3c6dd86249eb8423283a5b378

- **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

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

- **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

- **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

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. **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 Outdoor Corp (DECK)

Financials