Deckers Outdoor Corporation Reports 16.3% Revenue Growth to $4.986 Billion for Fiscal Year 2025

Deckers Outdoor Corporation reported a strong financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 16.3% to $4.986 billion, compared to $4.288 billion in the previous fiscal year. The growth was driven by significant contributions from the UGG and HOKA brands, which saw net sales rise by 13.1% to $2.531 billion and 23.6% to $2.233 billion, respectively. The company's gross margin improved by 230 basis points to 57.9%, while income from operations increased by 27.1% to $1.179 billion, resulting in a diluted earnings per share of $6.33, a 30.2% increase from the prior year.

In terms of operational changes, Deckers has made strategic adjustments to its brand focus, phasing out the Koolaburra brand and completing the sale of the Sanuk brand during the fiscal year. The company has also updated its reportable operating segments to better align with how its Chief Operating Decision Maker evaluates performance, shifting from a distribution channel focus to a brand-centric approach. This restructuring reflects a commitment to concentrate resources on the most promising brands, particularly UGG and HOKA, which have shown strong market demand.

Deckers' direct-to-consumer (DTC) channel also experienced growth, with sales increasing by 14.8% to $2.130 billion. The company operates 179 retail stores globally, including 137 UGG and 42 HOKA stores, and has expanded its e-commerce presence to 56 countries. The total volume of units sold increased by 13.5% to 74,100, indicating a positive trend in product adoption and consumer engagement. The company’s international sales surged by 26.3%, highlighting successful geographic expansion efforts.

Looking ahead, Deckers anticipates continued growth driven by its brand strategies and market conditions. The company plans to invest in expanding its retail footprint and enhancing its product offerings, particularly for the HOKA brand, which is gaining traction in the performance footwear market. However, management has acknowledged potential challenges, including macroeconomic factors such as inflation and geopolitical tensions that could impact consumer spending and supply chain dynamics. The company remains focused on maintaining its competitive edge through innovation and strategic marketing initiatives.

Overall, Deckers Outdoor Corporation's fiscal year 2025 results reflect a solid performance bolstered by strong brand loyalty and effective operational strategies, positioning the company for future growth despite potential market uncertainties.