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

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Domestic

- United States

United States

International

Total Revenue

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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)

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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

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?

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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?

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073ba7e768951aed15c430d5d53a93bd1b8fbffe99805f1d09d782de0c32da22

Net Sales (USD, thousands)

Cost of Sales (USD, thousands)

Gross Profit (USD, thousands)

Selling, General, and Administrative Expenses (USD, thousands)

Income from Operations (USD, thousands)

Total Other Income, Net (USD, thousands)

Income Before Income Taxes (USD, thousands)

Income Tax Expense (USD, thousands)

Net Income (USD, thousands)

Other Comprehensive (Loss) Income, Net of Tax (USD, thousands)

Comprehensive Income (USD, thousands)

Basic Net Income per Share (USD)

Diluted Net Income per Share (USD)

fc1624a7db097bd3af2cffdad16dd03721b06fa89a5266aa82a9a26e8e872424

Cash and cash equivalents (USD, thousands)

Trade accounts receivable, net (USD, thousands)

Inventories (USD, thousands)

Other current assets (USD, thousands)

Total current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Operating lease assets (USD, thousands)

Other assets (USD, thousands)

Total assets (USD, thousands)

Trade accounts payable (USD, thousands)

Operating lease liabilities (USD, thousands)

Other accrued expenses (USD, thousands)

Total current liabilities (USD, thousands)

Long-term operating lease liabilities (USD, thousands)

Other long-term liabilities (USD, thousands)

Total long-term liabilities (USD, thousands)

Total stockholders’ equity (USD, thousands)

Total liabilities and stockholders’ equity (USD, thousands)

4f07d120c4f717049976a9fc74f14033e8dca0c5acd4c1eac84fd98a9a7c7a32

Deckers Outdoor Corp (DECK)

Financials