Deckers Outdoor (DECK) Q2 2025 earnings summary

Executive summary

• Second quarter revenue grew 20% year-over-year to $1.31 billion, with gross margin at 55.9% and diluted EPS up 39% to $1.59, driven by strong demand for HOKA and UGG brands.

• Net sales for the six months ended September 30, 2024, increased 20.9% year-over-year to $2,136.7 million, with net income up 47.9%.

• HOKA revenue increased 32% in the first half, surpassing $2 billion in trailing twelve-month revenue for the first time.

• UGG revenue rose 13% in the first half, driven by strong international and wholesale performance.

• CEO transition occurred on August 1, 2024, with Stefano Caroti succeeding Dave Powers.

Financial highlights

• Q2 revenue: $1.311 billion, up 20% year-over-year on both reported and constant currency basis.

• Gross margin: 55.9%, up from 53.4% year-over-year, driven by favorable brand/product mix and reduced closeouts.

• Operating income for Q2 rose to $305.1 million from $224.6 million; SG&A expenses increased to $428.2 million.

• Diluted EPS: $1.59, up from $1.14 last year (39% growth).

• Cash and equivalents: $1.226 billion as of September 30, 2024; inventory: $778 million, up 7% year-over-year.

Outlook and guidance

• FY25 revenue guidance raised to $4.8 billion (12% growth), up from $4.7 billion.

• HOKA expected to grow 24% year-over-year; UGG to grow mid-single digits.

• Gross margin guidance increased to 55%-55.5%; operating margin expected at 20%-20.5%.

• Diluted EPS guidance raised to $5.15-$5.25.

• Guidance assumes no major deterioration in macro risks or unforeseen charges.