Companies

Deckers maintains good momentum

Feb 6, 2025 United States

The California-based company has reported another strong quarterly performance, driven by good results from Hoka and Ugg, and has raised its full year outlook as a result

“Deckers posted exceptional results in the third quarter, delivering record quarterly revenue, gross margin, and earnings,” said Stefano Caroti, President and Chief Executive Officer. “Ugg continued to experience incredible global momentum, with the brand’s iconic franchises capturing strong full price consumer demand across all regions. At the same time, Hoka delivered impressive results consistent with our strategy, remaining focused on scaling through innovative performance products”.

Third Quarter Results

In the three months ending on the 31^stof December, Deckers’ net sales reached 1.83 billion US dollars, an increase of 17.1%, or 16.6% on a constant currency basis, as compared to the same period of fiscal 2024.

The Ugg brand contributed 1.24 billion to the company’s total net sales in the third quarter, up by 16.1%, and Hoka brand contributed 530.9 million Us dollars, up by 23.7%, on a comparable basis to the same quarter of last fiscal year.

On the contrary, Teva brand’s net sales were 24.1 million US dollars, down by 6.0%, and Other brands’ net sales were 28.0 million US dollars, down by 16.6%, versus the same period of last fiscal year.

In the third quarter of the current fiscal year, the company’s gross margin improved to 60.3% from 58.7% in a similar period of the previous year.

Deckers reported third quarter diluted earnings per share of 3.00 US dollars, as compared to 2.52 US dollars in the same quarter of fiscal 2024. This increase highlights the effectiveness of the stock split implemented in the second quarter.

Outlook

As a result of its strong performance, the company has again raised its guidance. The company now expects net sales to increase by approximately 15% to 4.9 billion euros, on a comparable basis to the previous guidance of 12% growth to 4.8 billion euros.

“Our increased full-year revenue outlook calls for 15% growth, which would be our fifth consecutive year growing mid-teens or higher, complemented by our commitment to maintain top-tier levels of operating margin”, stressed Deckers.

In addition, the full year gross margin is now expected to be at or slightly better than 57% and diluted earnings per share are expected in the range of 5.75 to 5.80 US dollars.

Image Credits: sneakerjagers.com

United States Deckers Footwear hoka Quarter Results Results Ugg