Deckers Outdoor Corporation Reports 9.1% Revenue Growth to $1.43 Billion in Q2 2025

Deckers Outdoor Corporation reported a strong financial performance for the second fiscal quarter ended September 30, 2025, with net sales reaching $1.43 billion, a 9.1% increase from $1.31 billion in the same period last year. The company's income from operations also rose to $326.5 million, up 7.0% from $305.1 million in the prior year. Net income for the quarter was $268.2 million, reflecting a 10.7% increase compared to $242.3 million in the previous year. Diluted earnings per share increased to $1.82, up from $1.59, marking a 14.5% rise.

The company's performance was bolstered by significant growth in its HOKA and UGG brands, which saw net sales increases of 11.1% and 10.1%, respectively. HOKA's sales were driven by higher international demand, particularly in the wholesale channel, while UGG benefited from increased wholesale shipments and earlier deliveries. However, sales from the Other brands segment, which includes Koolaburra and AHNU, decreased by 26.5%, primarily due to the phase-out of standalone operations for Koolaburra. Overall, wholesale channel sales increased by 13.4%, while direct-to-consumer sales saw a slight decline of 0.8%.

In terms of operational changes, Deckers has been restructuring its brand portfolio. The company has begun phasing out the standalone operations of the AHNU brand and has already closed operations for Koolaburra. The sale of the Sanuk brand was completed in the previous fiscal year, and its financial results are now included in the Other brands segment until the sale date. As of September 30, 2025, Deckers operated 200 global retail stores, including 145 UGG and 55 HOKA stores.

Deckers' gross margin for the quarter was 56.2%, a slight increase from 55.9% in the prior year, attributed to favorable product mix shifts and price increases, although it faced challenges from higher tariffs and a less favorable channel mix. Selling, general, and administrative expenses rose by 11.5% to $477.3 million, driven by increased marketing and occupancy costs. The company reported a flat operating margin of 22.8% for the quarter.

Looking ahead, Deckers anticipates continued growth driven by its strategic focus on the HOKA and UGG brands, while managing the transition of its Other brands. The company remains cautious about potential impacts from global economic conditions, including inflation and supply chain disruptions, but expects to leverage its strong brand portfolio to navigate these challenges effectively.