US' Deckers Brands' FY25 sales up 16%, projects strong FY26 start
American designer and distributor of apparel and footwear Deckers Brands has anticipated net sales to be in the range of $890 million to $910 million in the first quarter (Q1) of fiscal 2026 (FY26), ending June 30, 2025. The diluted earnings per share (EPS) are projected between $0.62 and $0.67, excluding any impact from potential additional share repurchases.
Due to the ongoing macroeconomic uncertainty, particularly surrounding evolving global trade policies, the company is refraining from issuing full-year guidance for FY26, Deckers Brands said in a press release.
Deckers Brands has reported net sales of $4.99 billion in FY25, up 16.3 per cent YoY, led by strong growth in Hoka at 24 per cent and UGG at 13 per cent. EPS rose to $6.33. Q4 sales hit $1.02 billion, an increase of 6.5 per cent, with a gross margin of 56.7 per cent in Q4. For Q1 FY26, sales are forecast between $890â€'910 million and EPS between $0.62â€'$0.67, amid global trade uncertainties.
In the full fiscal ended March 31, 2025, the company has generated net sales of $4.99 billion, an increase of 16.3 per cent year-over-year (YoY), and 16.5 per cent YoY on a constant currency basis.
Brand-wise, UGG's net sales increased by 13.1 per cent to $2.53 billion in FY25. Hoka brand's net sales rose 23.6 per cent to $2.23 billion, and other brands' net sales decreased 8.6 per cent to $221.2 million.
Channel-wise, wholesale net sales saw an increase of 17.4 per cent to $2.86 billion, and direct-to-consumer (DTC) net sales grew 14.8 per cent to $2.130 billion. DTC comparable net sales increased 13.4 per cent.
Region-wise, domestic net sales saw a rise of 11.3 per cent to $3.187 billion, and international net sales rose 26.3 per cent to $1.8 billion. The gross margin in FY25 was 57.9 per cent compared to 55.6 per cent in FY24.
The selling, general, and administrative (SG&A) expenses were $1.707 billion, operating income was $1.179 billion, and diluted earnings per share (EPS) stood at $6.33.
'Deckers delivered another exceptional year of results in fiscal 2025, highlighted by the Hoka and UGG brands' respective revenue growth of 24 per cent and 13 per cent, as well as record earnings per share,' said Stefano Caroti, president and chief executive officer (CEO) at Deckers.
'While the global trade environment has introduced greater near-term uncertainty, we are very confident in the exciting opportunities ahead for Hoka and UGG. We view these brands as industry leaders, each with iconic and innovative products that operate in differentiated marketplaces. Alongside Deckers' superb balance sheet, this positions us well to manage through the near-term with a focus on the long-term,' added Caroti.
In the fourth quarter (Q4) of FY25, Deckers' net sales went up 6.5 per cent to $1.02 billion and 7.5 per cent on a constant currency basis. UGG's net sales rose 3.6 per cent to $374.3 million, Hoka grew 10 per cent to $586.1 million, and other brands decreased 6.3 per cent to $61.3 million.
Wholesale net sales were up 12.3 per cent to $611.6 million, DTC decreased 1.2 per cent to $410.2 million and DTC comparable declined 1.6 per cent. Domestic sales reached $647.7 million and international net sales increased by 19.9 per cent to $374.1 million.
The gross margin in Q4 was 56.7 per cent, SG&A expenses were $405.8 million, operating income was $173.9 million, and diluted EPS was $1.
'Fiscal year 2025 was Deckers' fifth consecutive year of double-digit revenue and earnings per share growth, with respective compound annual growth rates of 19 per cent and 32 per cent over the five-year period,' said Steve Fasching, chief financial officer (CFO) at Deckers Brands . 'We will remain nimble and disciplined as we navigate near-term uncertainty, while actively investing in our strategic long-term growth opportunities. Importantly, Deckers remains capable of returning compelling value to shareholders, supported by $1.9 billion in cash on hand, sustainable cash flow generation, and our increased share repurchase authorization that now totals $2.5 billion.'
Fibre2Fashion News Desk (SG)
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