Deckers Outdoor 2025 Q4 Earnings Beats Expectations with Net Income Up 18.7%

Deckers Outdoor (DECK) reported its fiscal 2025 Q4 earnings on May 22nd, 2025. The company surpassed analyst expectations with earnings of $151.41 million, or $1.00 per share, compared to forecasts of $0.61 per share. Revenue also exceeded expectations, reaching $1.02 billion, up 6.5% year-over-year. Despite the uncertain global trade environment impacting guidance, Deckers remains optimistic about the long-term growth potential of its brands, HOKA and UGG. The company anticipates continued revenue growth driven by these brands but cautions about potential cost increases due to tariffs.

Revenue

Deckers Outdoor's total revenue rose by 6.5% to $1.02 billion in 2025 Q4, up from $959.76 million in 2024 Q4.

Earnings/Net Income

Deckers Outdoor's EPS rose 20.5% to $1.00 in 2025 Q4 from $0.83 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $151.41 million in 2025 Q4, marking 18.7% growth from $127.55 million in 2024 Q4. EPS performance was notably strong, reflecting the company's robust earnings growth.

Post-Earnings Price Action Review

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CEO Commentary

Stefano Caroti, President and Chief Executive Officer, highlighted Deckers Outdoor's record performance in fiscal 2025, citing a 16% revenue growth to nearly $5 billion and a 30% increase in earnings per share to $6.33. He noted that HOKA's revenue surged 24%, driven by strong brand awareness and expanding international presence, while UGG delivered a 13% growth supported by innovative product introductions. Caroti acknowledged challenges from shifting U.S. trade policy but expressed confidence in the company’s ability to adapt and maintain a consumer-first strategy, emphasizing the long-term growth potential across both brands and markets.

Guidance

For fiscal year 2026, the company does not provide formal guidance but anticipates revenue growth driven by HOKA in the mid-teens and UGG in the mid-single digits. The CEO indicated potential cost increases due to tariffs, estimating up to $150 million in additional costs, which may impact demand. He noted that gross margin is expected to decline from 57.9% in fiscal 2025, while SG&A expenses are projected to increase as the company continues to invest in brand-building initiatives. For Q1 FY26, revenue is expected to be between $890 million and $910 million, with diluted EPS ranging from $0.62 to $0.67.

Additional News

Deckers Outdoor Corp announced significant changes in its leadership structure with Cynthia Davis appointed as the board chair, succeeding Michael Devine who is retiring after a tenure of 14 years. In addition, the company expanded its stock buyback program, increasing the total authorization by $2.25 billion, bringing it to approximately $2.5 billion. Deckers also executed stock repurchases worth $266 million in the fourth quarter and continued with an additional $84 million after the quarter's end. These strategic moves underscore Deckers' commitment to enhancing shareholder value amidst evolving trade conditions.