Deckers Outdoor Corporation Reports 17.1% Revenue Growth in Third Fiscal Quarter

Deckers Outdoor Corporation reported significant financial growth in its third fiscal quarter ended December 31, 2024, with net sales reaching $1.83 billion, a 17.1% increase from $1.56 billion in the same period last year. For the nine months ending December 31, 2024, total net sales amounted to $3.96 billion, reflecting a 19.1% rise compared to $3.33 billion in the prior year. The company's gross profit for the quarter was $1.10 billion, resulting in a gross margin of 60.3%, up from 58.7% a year earlier. Net income for the quarter was reported at $456.7 million, a 17.1% increase from $389.9 million in the previous year, translating to diluted earnings per share of $3.00, up from $2.52.

The company experienced notable growth across its various sales channels. Direct-to-consumer (DTC) sales increased by 17.9% to $1.01 billion, while wholesale sales rose by 16.2% to $815.8 million. The UGG brand continued to be a strong performer, with wholesale sales increasing by 16.2% and DTC sales growing by 16.0%. The HOKA brand also saw substantial growth, with wholesale sales up 21.0% and DTC sales increasing by 27.5%. International sales surged by 28.5%, contributing to 36.0% of total net sales for the quarter.

In terms of strategic developments, Deckers completed the sale of its Sanuk brand on August 15, 2024, and has begun phasing out standalone operations for the Koolaburra brand to focus on more promising opportunities. The company also executed a six-for-one forward stock split on September 13, 2024, which retroactively adjusted prior period results. As of December 31, 2024, Deckers operated 179 retail stores globally, including 139 UGG and 40 HOKA stores.

Operationally, Deckers reported an increase in total units sold, rising 14.2% to 24,900 units compared to the previous year. The company’s cash and cash equivalents stood at $2.24 billion, up from $1.50 billion at the end of the previous fiscal year. The increase in cash was attributed to strong operating cash flows, which totaled $1.12 billion for the nine months ended December 31, 2024. The company also noted a rise in selling, general, and administrative expenses, primarily due to increased advertising and promotional costs.

Looking ahead, Deckers anticipates continued growth driven by strong demand for its brands, particularly UGG and HOKA. The company plans to leverage its DTC capabilities and expand its product offerings while managing costs effectively. However, it remains cautious of potential market risks, including fluctuations in foreign currency exchange rates and changes in consumer preferences.