The growth was primarily driven by double-digit increases in its key brands, Hoka and UGG, reflecting strong consumer demand, expanding global reach and the brands’ ability to resonate with a diverse customer base through innovation and premium product offerings, Deckers Brands said in a news release.
Deckers Brands has reported strong Q2FY25 results, with net sales increasing 9.1 percent to $1.431 billion, driven by double-digit growth at Hoka and UGG. Operating income reached $326.5 million, while earnings per share rose to $1.82. The company expects FY26 net sales of $5.35 billion, a gross margin of 56 percent and earnings per share (EPS) between $6.30 and $6.39, supported by continued global momentum.
On the brand front, Hoka’s revenue rose 11.1 percent to $634.1 million, while UGG’s grew 10.1 percent to $759.6 million, demonstrating sustained consumer demand and international momentum. By contrast, sales of other brands decreased by 26.5 percent due to the phasing out of Koolaburra’s independent operations.
Wholesale sales rose 13.4 percent to $1.036 million, while direct-to-consumer (DTC) sales fell slightly 0.8 percent to $394.6 million. International sales rose 29.3 percent to $591.3 million, offsetting a 1.7 percent drop in domestic revenue.
The company reported operating income of $326.5 million, up from $305.1 million, and diluted earnings per share (EPS) of $1.82, down from $1.59 last year. Gross margin improved to 56.2 percent, supported by strong brand performance. Deckers’ balance sheet remained strong, with $1.41 billion in cash and no outstanding loans. The company repurchased 2.6 million shares worth $282 million during the quarter, leaving $2.2 billion under its existing authorization.
“Hoka and UGG again achieved double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands,” he said. Stefano Caroti, President and Chief Executive Officer (CEO) of Deckers Brands. “Our brands’ ability to connect with consumers through leading innovative products differentiates Deckers in today’s dynamic and competitive marketplace. Combined with our best-in-class operating model and financial profile, I am confident in our ability to achieve our fiscal 2026 outlook and continue to capture the significant opportunities ahead for Deckers.”
For the full fiscal year ending March 31, 2026, Deckers Brands expects net sales of approximately $5.35 billion, driven by continued momentum in its key brands: Hoka, which is projected to grow in the 10% range, and UGG, which is expected to experience low- to mid-single-digit growth.
The company anticipates a gross margin of about 56 percent, an operating margin of 21.5 percent and selling, general and administrative expenses of approximately 34.5 percent of net sales. The effective tax rate is forecast at 23 percent, with diluted earnings per share estimated between $6.3 and $6.39, excluding the potential impact of future share buybacks, the statement added.
Fiber2Fashion News Desk (SG)
