On May 23, 2024, Deckers Outdoor Corp (DECK, Financial) released its 8-K filing reporting robust financial results for the fourth quarter and full fiscal year 2024. Deckers Outdoor Corp designs and sells casual and performance footwear, apparel, and accessories. Primary brands include UGG, Teva, and Sanuk. The company distributes most of its products through its wholesale business, but it also has a substantial direct-to-consumer business with its company-owned retail stores and websites. Most sales are in the United States, although the company also has retail stores and distributors throughout Europe, Asia, Canada, and Latin America. Deckers sources its products from independent manufacturers primarily in Asia.
Fiscal Year 2024 Financial Highlights
Deckers Outdoor Corp (DECK, Financial) reported a record revenue of $4.29 billion for FY 2024, marking an 18% increase from the previous year. The company's diluted earnings per share (EPS) surged by 51% to $29.16, significantly surpassing the annual analyst estimates of $27.15 EPS and $4.214 billion in revenue.
Fourth Quarter Performance
For the fourth quarter, Deckers reported net sales of $959.8 million, a 21.2% increase compared to $791.6 million in the same period last year. The company's diluted EPS for the quarter was $4.95, up from $3.46 in the previous year. This performance exceeded the quarterly analyst estimates of $2.90 EPS and $887.55 million in revenue.
Brand Performance
The HOKA brand led the growth with a 34.0% increase in net sales to $533.0 million, while UGG brand net sales rose by 14.9% to $361.3 million. However, Teva and Sanuk brands experienced declines in net sales by 15.6% and 39.1%, respectively.
Key Financial Metrics
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| Net Sales | $4.29 billion | $3.63 billion |
| Gross Margin | 55.6% | 50.3% |
| Operating Income | $927.5 million | $652.8 million |
| Diluted EPS | $29.16 | $19.37 |
Balance Sheet and Cash Flow
As of March 31, 2024, Deckers reported cash and cash equivalents of $1.502 billion, up from $981.8 million the previous year. Inventories decreased to $474.3 million from $532.9 million. The company had no outstanding borrowings, reflecting a strong liquidity position.
Stock Repurchase Program
During FY 2024, Deckers repurchased approximately 715 thousand shares of its common stock for a total of $414.9 million at a weighted average price of $580.44 per share. As of March 31, 2024, the company had approximately $941.7 million remaining under its stock repurchase authorization.
Outlook for FY 2025
Deckers provided a positive outlook for FY 2025, expecting net sales to increase by approximately 10% to $4.7 billion. The company anticipates diluted EPS to be in the range of $29.50 to $30.00.
“Deckers achieved record results during fiscal year 2024, as we delivered revenue growth of 18% and increased earnings per share by 51%, reflecting a continued dedication to maintain exceptional levels of profitability as our brands scale,” said Dave Powers, President and Chief Executive Officer.
Deckers Outdoor Corp (DECK, Financial) has demonstrated strong financial performance, driven by the success of its HOKA and UGG brands. The company's robust balance sheet and positive outlook for FY 2025 position it well for continued growth in the competitive footwear and apparel industry.
Explore the complete 8-K earnings release (here) from Deckers Outdoor Corp for further details.
