Why did DECK's EPS beat forecasts in 2025?

Deckers Outdoor's EPS beat forecasts in 2025 due to several key factors:

1. Strong Revenue Growth: The company experienced a significant increase in revenue, which was driven by robust demand for its Hoka and Ugg brands. Deckers Outdoor reported a 20% year-over-year revenue increase in its second quarter fiscal 2025, reaching $1.3 billion. This growth in revenue contributed to the higher EPS.
2. Efficient Cost Management: The company's gross margin improved to 56.9% from 51.3%, indicating efficient cost management and strong pricing power. This improvement in gross margin reflects the company's ability to manage costs effectively, which in turn contributes to higher profitability and EPS.
3. International Sales Growth: Deckers Outdoor saw a significant increase in international sales, with a 28.5% growth in this segment. This expansion into new markets and increased international sales have contributed to the company's overall growth and higher EPS.
4. Successful Product Initiatives and Brand Evolution: The company's successful product initiatives and the evolution of its brands, particularly HOKA, have led to increased sales and market share. HOKA, for instance, surpassed $2 billion in trailing 12-month revenue for the first time, thanks to a 32% increase during the first half of the fiscal year. This brand growth has been a significant factor in the company's financial success and higher EPS.

In conclusion, Deckers Outdoor's EPS beat forecasts in 2025 due to strong revenue growth, efficient cost management, international sales growth, and successful brand initiatives. These factors combined to contribute to the company's higher EPS and overall financial performance.