Q3 2025 Deckers Outdoor Corp Earnings Call Transcript
Key Points
- Deckers Outdoor Corp (DECK) reported a record third quarter with revenue growing 17% year-over-year to $1.8 billion.
- Gross margins improved to 60.3%, showcasing strong pricing power and product mix.
- Diluted earnings per share increased by 19% to $3, indicating strong profitability.
- UGG and HOKA brands continue to drive success with UGG growing 16% and HOKA increasing 24% in revenue.
- The company raised its full-year revenue expectations to over $4.9 billion, reflecting a 15% growth, up from the prior guidance of 12%.
- Deckers Outdoor Corp (DECK) anticipates a challenging fourth quarter due to inventory limitations, particularly for the UGG brand.
- The company expects more normalized markdowns and promotional activity in the fourth quarter, which could impact margins.
- Foreign exchange rates are expected to be a headwind in the upcoming quarter, affecting financial performance.
- Freight costs are anticipated to be a significant headwind in the fourth quarter, impacting gross margins.
- The company plans to phase out the Koolaburra brand, which may lead to operational adjustments and potential revenue impacts.
Welcome to the Deckers Brands third-quarter fiscal 2025 earnings conference call.
(Operator Instructions)
I would like to remind everyone that this conference call is being recorded.
I'd now like to turn the call over to Erinn Kohler, VP, Investor relations and 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 may 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 1995. All statements made on this call other than
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