Deckers’ first quarter results drew a significant positive response from the market, which management attributed to robust international expansion and strong wholesale momentum across its HOKA and UGG brands. CEO Stefano Caroti highlighted that both brands gained market share despite a challenging U.S. retail landscape, with HOKA’s performance particularly strong in Europe and Asia. Caroti noted, “Our brands gained market share while maintaining a high degree of full price integrity,” pointing to disciplined inventory management and successful new product launches as key drivers.
Is now the time to buy DECK? Find out in our full research report (it’s free).
Deckers (DECK) Q2 CY2025 Highlights:
- Revenue: $964.5 million vs analyst estimates of $899.8 million (16.9% year-on-year growth, 7.2% beat)
- EPS (GAAP): $0.93 vs analyst estimates of $0.68 (36.6% beat)
- Adjusted EBITDA: $185.6 million vs analyst estimates of $136.4 million (19.2% margin, 36.1% beat)
- Revenue Guidance for Q3 CY2025 is $1.4 million at the midpoint, below analyst estimates of $1.40 billion
- EPS (GAAP) guidance for Q3 CY2025 is $1.53 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 17.1%, up from 16.1% in the same quarter last year
- Locations: 181 at quarter end, up from 172 in the same quarter last year
- Constant Currency Revenue rose 17.5% year on year (23% in the same quarter last year)
- Same-Store Sales fell 2.2% year on year (21.9% in the same quarter last year)
- Market Capitalization: $15.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Deckers’s Q2 Earnings Call
- Jay Sole (UBS) asked about the sustainability of HOKA’s wholesale growth and inventory cleanup. CFO Steve Fasching explained that inventory positions have improved, with older styles largely cleared, and that balanced growth between wholesale and DTC is expected moving forward.
- Laurent Vasilescu (BNP Paribas) pressed on DTC expansion and price increases. CEO Stefano Caroti described the selective, phased approach to price hikes and outlined plans for new store openings in Europe, supported by a new Global Head of Retail.
- Adrienne Yih (Barclays) questioned the breadth of price increases and their impact on gross margin. Fasching clarified that increases are targeted by product and season, with margin recovery expected only after tariffs are fully absorbed and mitigation strategies take effect.
- Rakesh Patel (Raymond James) inquired about international growth drivers and SG&A discipline. Caroti highlighted the outperformance of new stores and retail partnerships in Europe and Asia, while Fasching detailed deliberate investments in brand and infrastructure.
- Samuel Poser (Williams Trading) sought details on store versus e-commerce performance. Fasching and Caroti confirmed that in-store sales outperformed online, reflecting a broader industry shift toward physical retail for full price purchases.
Catalysts in Upcoming Quarters
In the quarters ahead, our analysts will watch (1) the pace and success of price increases as tariffs take effect, (2) the ongoing expansion and productivity of Deckers’ international wholesale and retail footprint, and (3) the ability to sustain demand for new HOKA and UGG product launches. We will also monitor the impact of increased marketing and operational spending on margins as the company navigates a more competitive and inflationary environment.
Deckers currently trades at $104, in line with $105.03 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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