Deckers Outdoor (DECK) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 FY25 revenue of $1.83 billion, up 17% year-over-year, and record diluted EPS of $3.00, up 19%, marking the largest and most profitable quarter in company history.

• UGG and HOKA brands drove performance, with UGG revenue up 16% to $1.24 billion and HOKA up 24% to $531 million in Q3; nine-month UGG sales grew 14.9% to $2.16 billion and HOKA 29.3% to $1.65 billion.

• Gross margin improved to 60.3% in Q3, up 160 basis points year-over-year; nine-month gross margin rose 270 basis points to 58.2%.

• Diluted EPS for the nine months grew 32.3% to $5.33, reflecting higher net income and lower share count due to stock repurchases.

• Six-for-one forward stock split completed in Q2 FY25; Koolaburra brand operations being phased out and Sanuk brand sold in August 2024.

Financial highlights

• Q3 revenue: $1.83 billion, up 17% year-over-year; nine-month net sales: $3.96 billion, up 19.1%.

• Gross margin: 60.3% in Q3, up from 58.7% last year; nine-month gross margin: 58.2%, up from 55.5%.

• SG&A expenses: $535 million in Q3 (29.3% of revenue), up 25% year-over-year; nine-month operating margin increased to 25.4%.

• Diluted EPS: $3.00 in Q3, up from $2.52; $5.33 for nine months, up 32.3%.

• Cash and equivalents: $2.24 billion at Q3 end; no outstanding borrowings.

Outlook and guidance

• FY25 revenue expected just above $4.9 billion (15% growth); gross margin projected at or slightly above 57%.

• UGG revenue growth now expected at 10%; HOKA to grow 24% year-over-year.

• SG&A to remain at approximately 35% of revenue; operating margin expected at 22%; effective tax rate at 23.5%.

• Diluted EPS guidance raised to $5.75–$5.80.

• Management expects seasonality impact to decrease as HOKA's year-round sales become a larger share.