Latest news with #StefanoCaroti
Yahoo
28-05-2025
- Business
- Yahoo
DECK Q1 Earnings Call: Sales Miss Expectations, Margin Expansion and Cautious Outlook
Footwear and apparel conglomerate Deckers (NYSE:DECK) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 6.5% year on year to $1.02 billion. Its GAAP EPS of $1 per share was 66.9% above analysts' consensus estimates. Is now the time to buy DECK? Find out in our full research report (it's free). Operating Margin: 17.4%, up from 16% in the same quarter last year Locations: 181 at quarter end, up from 164 in the same quarter last year Constant Currency Revenue rose 7.5% year on year (21.1% in the same quarter last year) Same-Store Sales fell 1.6% year on year (20.6% in the same quarter last year) Market Capitalization: $16.28 billion Deckers' leadership attributed quarterly performance to the continued momentum of its two largest brands, HOKA and UGG, which each saw growth across channels and regions. While HOKA benefited from expanded wholesale distribution and new product launches such as the Bondi 9 and Clifton 10, direct-to-consumer growth in the U.S. was tempered by higher promotions on outgoing models and some softness in new customer acquisition. For UGG, strong wholesale demand for transitional and spring styles underpinned growth, though limited availability of key products in direct channels constrained sales. CFO Steve Fasching noted that gross margin improvement was driven primarily by higher levels of full-price selling within UGG and favorable product mix. Looking forward, management emphasized that macroeconomic uncertainty and new U.S. footwear tariffs are likely to weigh on results in the coming quarters. Steve Fasching explained, 'We believe there is potential to see demand erosion associated with the combination of price increases and general softness in the consumer spending environment.' The company anticipates that international growth—especially for HOKA—will outpace the U.S., while wholesale channels will drive more incremental gains than direct-to-consumer. Deckers also plans selective price increases and cost-sharing with suppliers to partially offset tariff impacts, but expects gross margins to face headwinds as a result. CEO Stefano Caroti reiterated a long-term focus on innovation and international expansion to support both brands despite near-term challenges. Management pointed to model transitions, shifting channel dynamics, and external trade policy changes as major factors shaping the quarter's financial results and longer-term strategy. HOKA wholesale expansion: The brand saw continued growth in global wholesale distribution, with management highlighting that expanded retail partnerships and strong sell-through of new models like the Bondi 9 contributed to overall gains even as U.S. direct-to-consumer growth slowed. Product upgrade cycle: New iterations of key franchises (Bondi 9, Clifton 10) received positive feedback from consumers and partners, but transition periods involved higher promotional activity and lower average selling prices, especially in the direct channel. UGG's diversification and men's growth: UGG drove growth through new product categories, including men's-focused styles and hybrid products. Management cited successes with men's campaigns and higher sell-through of spring products in China, reflecting progress in broadening the brand's appeal and seasonality. Tariff and cost pressures: Deckers is facing incremental costs from new U.S. footwear tariffs and higher freight rates. While only a small portion of production is sourced from China, management expects partial mitigation through price increases and supplier negotiations but anticipates some margin contraction. Inventory and supply chain management: The company intentionally increased inventory levels compared to last year to navigate potential tariff timing and a European distribution center transition, aiming to avoid supply disruptions during key periods. Deckers' outlook is shaped by planned price adjustments, macroeconomic headwinds, and a continued push for international and wholesale-led growth. Tariffs and pricing strategy: Management expects new U.S. tariffs on footwear imports to increase costs, prompting a staggered implementation of selective price increases and cost-sharing with factory partners. However, they caution that not all incremental costs will be offset, and higher prices may impact demand, particularly in the U.S. International and wholesale momentum: The company projects that international sales, especially in Europe and China, will grow faster than domestic sales. HOKA's expanding presence in overseas markets and additional wholesale partnerships are seen as main avenues for capturing new customers and mitigating U.S. softness. Product innovation and pipeline: Deckers is prioritizing ongoing product launches and upgrades across HOKA and UGG, including new performance models and lifestyle offerings. Management believes this will help maintain consumer interest and support growth across both established and emerging categories, even as the environment remains uncertain. In the coming quarters, the StockStory team will closely monitor (1) Deckers' ability to offset tariff-related cost increases through pricing and supplier negotiations, (2) trends in HOKA's U.S. direct-to-consumer segment as new models gain traction and promotions normalize, and (3) the pace of international and wholesale channel expansion—especially in key markets like China and Europe. The success of upcoming product launches and supply chain adaptations will also be important indicators of execution. Deckers currently trades at a forward P/E ratio of 17.4×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
24-05-2025
- Business
- Fashion Network
Deckers Brands closes 2025 with 16% sales jump on Hoka and Ugg gains
Deckers Brands announced on Thursday sales surged 16.3% to $4.986 billion for the fiscal-year 2025, on the back of a double-digit sales hike at Hoka and Ugg. The Goleta, California-based company said wholesale net sales increased 17.4% to $2.856 billion alongside a direct-to-consumer sales increase of 14.8% to $2.13 billion for the 12 months ending March 31. By region, domestic sales increased 11.3% to $3.187 billion, and international net sales increased 26.3% to $1.799 billion. By brand, Hoka clocked a 23.6% growth to $2.233 billion, alongside Ugg where net sales increased 13.1% to $2.531 billion. The gains were partially offset by other brands, including Teva, Ahnu, and Koolaburra, where net sales decreased 8.6% to $221.2 million. For the fourth fiscal quarter, Deckers reported revenue of $1.02 billion, a 6.5% increase year-over-year. Hoka posted 10% growth to $586.1 million, while Ugg rose 3.6% to $374.3 million. Earnings per share for the quarter rose to $1.00, up from $0.82. 'Deckers delivered another exceptional year of results in fiscal 2025, highlighted by the Hoka and Ugg brands' respective revenue growth of 24% and 13%, as well as record earnings per share,' said Stefano Caroti, president and chief executive officer. '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.' Looking ahead, due to ongoing uncertainty around global trade policy, Deckers said it will not issue full-year guidance for fiscal 2026. For the first quarter ending June 30, the company expects sales between $890 million and $910 million. Diluted earnings per share is expected to be in the range of $0.62 to $0.67.
Fashion Network
24-05-2025
- Business
- Fashion Network
Deckers Brands closes 2025 with 16% sales jump on Hoka and Ugg gains
Deckers Brands announced on Thursday sales surged 16.3% to $4.986 billion for the fiscal-year 2025, on the back of a double-digit sales hike at Hoka and Ugg. The Goleta, California-based company said wholesale net sales increased 17.4% to $2.856 billion alongside a direct-to-consumer sales increase of 14.8% to $2.13 billion for the 12 months ending March 31. By region, domestic sales increased 11.3% to $3.187 billion, and international net sales increased 26.3% to $1.799 billion. By brand, Hoka clocked a 23.6% growth to $2.233 billion, alongside Ugg where net sales increased 13.1% to $2.531 billion. The gains were partially offset by other brands, including Teva, Ahnu, and Koolaburra, where net sales decreased 8.6% to $221.2 million. For the fourth fiscal quarter, Deckers reported revenue of $1.02 billion, a 6.5% increase year-over-year. Hoka posted 10% growth to $586.1 million, while Ugg rose 3.6% to $374.3 million. Earnings per share for the quarter rose to $1.00, up from $0.82. 'Deckers delivered another exceptional year of results in fiscal 2025, highlighted by the Hoka and Ugg brands' respective revenue growth of 24% and 13%, as well as record earnings per share,' said Stefano Caroti, president and chief executive officer. '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.' Looking ahead, due to ongoing uncertainty around global trade policy, Deckers said it will not issue full-year guidance for fiscal 2026. For the first quarter ending June 30, the company expects sales between $890 million and $910 million. Diluted earnings per share is expected to be in the range of $0.62 to $0.67.
Fashion Network
24-05-2025
- Business
- Fashion Network
Deckers Brands closes 2025 with 16% sales jump on Hoka and Ugg gains
Deckers Brands announced on Thursday sales surged 16.3% to $4.986 billion for the fiscal-year 2025, on the back of a double-digit sales hike at Hoka and Ugg. The Goleta, California-based company said wholesale net sales increased 17.4% to $2.856 billion alongside a direct-to-consumer sales increase of 14.8% to $2.13 billion for the 12 months ending March 31. By region, domestic sales increased 11.3% to $3.187 billion, and international net sales increased 26.3% to $1.799 billion. By brand, Hoka clocked a 23.6% growth to $2.233 billion, alongside Ugg where net sales increased 13.1% to $2.531 billion. The gains were partially offset by other brands, including Teva, Ahnu, and Koolaburra, where net sales decreased 8.6% to $221.2 million. For the fourth fiscal quarter, Deckers reported revenue of $1.02 billion, a 6.5% increase year-over-year. Hoka posted 10% growth to $586.1 million, while Ugg rose 3.6% to $374.3 million. Earnings per share for the quarter rose to $1.00, up from $0.82. 'Deckers delivered another exceptional year of results in fiscal 2025, highlighted by the Hoka and Ugg brands' respective revenue growth of 24% and 13%, as well as record earnings per share,' said Stefano Caroti, president and chief executive officer. '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.' Looking ahead, due to ongoing uncertainty around global trade policy, Deckers said it will not issue full-year guidance for fiscal 2026. For the first quarter ending June 30, the company expects sales between $890 million and $910 million. Diluted earnings per share is expected to be in the range of $0.62 to $0.67.
Yahoo
24-05-2025
- Business
- Yahoo
Why Deckers Outdoor Corporation (DECK) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Deckers Outdoor Corporation (NYSE:DECK) stands against other Friday's worst-performing stocks. Deckers Outdoor Corp. tumbled by 19.86 percent on Friday to finish at $101.05 apiece as investors sold off positions following the lack of outlook guidance for the next fiscal year. While the company highlighted its strong performance in the fourth quarter and fiscal year 2025, it only said it remains confident in exciting opportunities ahead. '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,' said Deckers Outdoor Corporation (NYSE:DECK) President and CEO Stefano Caroti. 'Alongside Deckers' superb balance sheet, this positions us well to manage through the near-term with a focus on the long-term,' he added. A customer browsing a retail store, finding the perfect footwear for their casual outfits. In the fourth quarter of fiscal year 2025, net income grew by 19 percent to $151 million from $127 million registered in the same period last year. Net sales, on the other hand, rose by 6 percent to $1.022 billion from $960 million year-on-year. For the full-year period, net income grew by 27 percent to $966 million from $760 million, while net sales rose by 16 percent to $4.985 billion from $4.287 billion year-on-year. Overall, DECK ranks 1st on our list of Friday's worst-performing stocks. While we acknowledge the potential of DECK, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DECK and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
