The growth was primarily driven by double-digit increases in its key brands, Hoka and UGG, reflecting robust 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 press release.
Deckers Brands has reported strong Q2 FY25 results, with net sales rising 9.1 per cent to $1.431 billion, driven by double-digit growth in Hoka and UGG.
Operating income reached $326.5 million, while EPS rose to $1.82.
The company expects FY26 net sales of $5.35 billion, a gross margin of 56 per cent, and EPS between $6.30 and $6.39, supported by continued global momentum.
Brand-wise, Hoka’s revenue increased by 11.1 per cent to $634.1 million, while UGG’s grew 10.1 per cent to $759.6 million, demonstrating sustained consumer demand and international momentum. In contrast, sales from other brands declined 26.5 per cent due to the phase-out of Koolaburra’s standalone operations.
Wholesale sales climbed 13.4 per cent to $1.036 billion, whereas direct-to-consumer (DTC) sales fell slightly by 0.8 per cent to $394.6 million. International sales surged 29.3 per cent to $591.3 million, offsetting a 1.7 per cent dip in domestic revenue.
The company reported an operating income of $326.5 million, up from $305.1 million, and diluted earnings per share (EPS) of $1.82 versus $1.59 last year. The gross margin improved to 56.2 per cent, supported by strong brand performance. Deckers’ balance sheet remained solid, with $1.41 billion in cash and no outstanding borrowings. The company repurchased 2.6 million shares worth $282 million during the quarter, leaving $2.2 billion under its existing authorisation.
“Hoka and UGG again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands,” said Stefano Caroti, president and chief executive officer (CEO) at 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 year 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, projected to grow in the low-teens per cent range, and UGG, expected to see low-to-mid-single-digit growth.
The company anticipates a gross margin of about 56 per cent, operating margin of 21.5 per cent, and SG&A expenses at roughly 34.5 per cent of net sales. The effective tax rate is forecast at 23 per cent, with diluted earnings per share estimated between $6.3 and $6.39, excluding the potential impact of future share repurchases, added the release.
Fibre2Fashion News Desk (SG)
