Q4 2025 Deckers Outdoor Corp Earnings Call Transcript
Key Points
- Deckers Outdoor Corp (DECK) reported a record performance for fiscal year 2025, with revenue growing 16% to nearly $5 billion.
- The company achieved a gross margin expansion of 230 basis points to 57.9% and an operating margin improvement of 200 basis points to 23.6%.
- Earnings per share increased by 30% to $6.33, showcasing strong financial performance.
- HOKA brand revenue grew 24% to $2.2 billion, with significant international expansion and increased brand awareness.
- UGG brand revenue increased by 13% to $2.5 billion, driven by strong growth across channels and regions, particularly in international markets.
- The company faces macroeconomic uncertainty related to global trade policy, impacting fiscal year 2026 outlook.
- Deckers Outdoor Corp (DECK) anticipates up to $150 million in increased costs due to tariffs, with potential demand erosion.
- HOKA's direct-to-consumer (DTC) growth in the US faced pressure due to model changeovers and macroeconomic factors.
- The company expects a decline in gross margin in fiscal year 2026 due to increased tariffs, higher promotional activity, and unfavorable channel mix.
- Deckers Outdoor Corp (DECK) is cautious about consumer spending in the US, which could impact demand and growth projections.
Good afternoon and thank you for standing by. Welcome to the Decker Brand's fourth quarter fiscal 2025 earnings conference call. (Operator Instructions)
I would like to remind everyone that this conference call is being recorded. I'll now turn the call over to Erinn Koller, Vice President Investor Relations, and AMP corporate planning.
Hello and thank you everyone for joining us today. On the call is Stefano Caroti, President and Chief Executive Officer, and Steve Fasching, Chief Financial Officer. Before we begin, I would like to remind everyone of the company's Safe Harbor policy.
Please note that certain statements made on this call are forward-looking statements within the meaning of the federal securities laws, which are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1,995.
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