Market Overview - Market indexes showed resilience against high bond yields, with the 30-year bond yield at +5.05%, the highest in 18 years, but moderated from previous spikes [1] - Major indexes finished flat, with the Dow, S&P 500, and Russell 2000 remaining unchanged, while the Nasdaq closed up +53 points (+0.28%) [2] - Despite being in the red over the past five trading days, the indexes have seen double-digit gains over the past month [2] Quarterly Earnings Summary - **Workday (WDAY)**: Reported Q1 earnings of $2.23 per share on $2.4 billion in sales, beating previous figures of $1.99 per share and $2.22 billion. However, shares fell -5% due to steady guidance and reduced capex spending [3] - **Deckers Outdoor (DECK)**: Earnings of $1.00 per share exceeded the Zacks consensus of 57 cents, with revenues of $1.02 billion surpassing expectations of $988.6 million. Shares dropped -11% due to lower-than-expected guidance for the current quarter and full-year guidance held back due to tariff issues [3] - **Intuit (INTU)**: Surpassed earnings expectations with $11.65 per share against a consensus of $10.89, and revenues of $7.75 billion exceeding the $7.54 billion forecast. Shares rose +5% following a significant increase in next-quarter guidance driven by Credit Karma growth [4] - **Ross Stores (ROST)**: Beat earnings estimates by 4 cents with $1.47 per share on $4.98 billion in revenues, slightly above consensus. Same-store sales were flat but improved from a projected decline. Shares fell -9% due to lower next-quarter earnings guidance attributed to tariff pressures [5] - **AutoDesk (ADSK)**: Reported Q1 earnings of $2.29 per share, beating the anticipated $2.14, with revenues of $1.63 billion slightly above the forecast of $1.61 billion. Shares gained +5% due to positive next-quarter guidance [6]

Core Viewpoint - Deckers reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing an increase from $0.82 per share a year ago, resulting in an earnings surprise of 75.44% [1][2] Financial Performance - The company achieved revenues of $1.02 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.35%, and up from $959.76 million in the same quarter last year [2] - Over the last four quarters, Deckers has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Deckers shares have declined approximately 39.3% year-to-date, contrasting with the S&P 500's decline of only 0.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.79, with expected revenues of $923.28 million, and for the current fiscal year, the EPS estimate is $6.36 on revenues of $5.4 billion [7] Industry Context - The Retail - Apparel and Shoes industry, to which Deckers belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a revenue growth of 16% year-over-year, reaching nearly $5 billion [7] - Gross margin expanded by 230 basis points to 57.9%, while operating margins improved by 200 basis points to 23.6% [7][36] - Earnings per share increased by 30% to $6.33 compared to the previous year [7][38] Business Line Data and Key Metrics Changes - HOKA brand revenue increased by 24% to $2.2 billion, with wholesale revenue growing 24% and DTC revenue rising 23% [11][36] - UGG brand revenue grew by 13% to $2.5 billion, with wholesale revenue increasing 15% and DTC revenue rising 11% [24][36] Market Data and Key Metrics Changes - International revenue for HOKA expanded by 39%, now representing 34% of global revenue, up from 30% last year [11] - UGG's international revenue increased by 20%, now accounting for 39% of global sales, up from 37% last year [24] Company Strategy and Development Direction - The company aims for a balanced channel mix of 50% DTC and 50% wholesale, focusing on brand-led growth and expanding international presence [9][10] - HOKA is positioned as a leading performance brand with plans to enhance product innovation and expand into lifestyle and fitness categories [19][23] - UGG is focusing on increasing adoption among male consumers and developing year-round products to capture a broader market [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty due to shifting U.S. trade policy but expressed confidence in the company's ability to adapt [8] - The company expects fiscal year 2026 to face challenges, including potential tariff impacts of up to $150 million on cost of goods sold [39][41] - Despite these challenges, management remains optimistic about long-term growth prospects for both HOKA and UGG [49] Other Important Information - The company repurchased approximately $567 million worth of shares during fiscal year 2025, reflecting strong cash flow and confidence in its strategic plan [38][47] - A new board chair, Cindy Davis, was announced, succeeding Mike Devine, who retired after 14 years of service [51] Q&A Session Summary Question: What factors contributed to the slowdown in HOKA U.S. DTC? - Management noted that the slowdown was due to unique factors in the U.S. market, including model changeovers and increased promotions, but expressed confidence in international performance [55][56] Question: Is mid-teens growth for HOKA still possible? - Management indicated that while they are not providing formal guidance, they remain optimistic about mid-teens growth based on strong international performance and brand awareness [60][64] Question: Can you elaborate on the impact of tariff costs? - The $150 million tariff cost is a gross estimate, and management is exploring pricing adjustments and cost-sharing strategies to mitigate the impact [75][76] Question: How will HOKA's growth be split between DTC and wholesale? - Management emphasized that the growth framework includes strategic expansion of wholesale distribution, which is expected to drive consumer engagement and brand awareness [81][82]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a revenue increase of 16% year-over-year, reaching nearly $5 billion [7][35] - Gross margin expanded by 230 basis points to 57.9%, while operating margins improved by 200 basis points to 23.6% [7][35] - Earnings per share (EPS) increased by 30% year-over-year to $6.33 [7][38] Business Line Data and Key Metrics Changes - HOKA brand revenue grew 24% year-over-year to $2.2 billion, with wholesale revenue also increasing by 24% [12][35] - UGG brand revenue increased by 13% to $2.5 billion, with wholesale revenue rising by 15% [23][35] - Direct-to-consumer (DTC) revenue for HOKA increased by 23%, while UGG's DTC revenue rose by 11% [12][23] Market Data and Key Metrics Changes - International revenue for HOKA expanded by 39%, now representing 34% of global revenue, up from 30% last year [12] - U.S. revenue for HOKA rose by 17%, totaling just under $1.5 billion [12] - UGG's international revenue grew by 20%, now accounting for 39% of global sales, up from 37% last year [23] Company Strategy and Development Direction - The company aims for a balanced channel mix of 50% DTC and 50% wholesale, focusing on brand-led growth and innovation [10][11] - HOKA is positioned as a leading performance brand with plans to expand its market share through innovation and increased brand awareness [19][22] - UGG is focusing on increasing adoption among male consumers and developing year-round products to capture a broader market [25][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment and its potential impact on consumer spending [29][31] - The company expects to face challenges in fiscal year 2026 due to tariff impacts, estimating an increase of up to $150 million in cost of goods sold [39][41] - Despite these challenges, management remains confident in the long-term growth potential of both HOKA and UGG brands [29][41] Other Important Information - The company repurchased approximately $567 million worth of shares during fiscal year 2025, reflecting strong cash flow generation [38][47] - A new board chair, Cindy Davis, was announced, succeeding Mike Devine [51] Q&A Session Summary Question: About the slowdown in HOKA U.S. DTC - Management noted that the slowdown was due to several unique factors affecting the U.S. market, but international DTC performance remained strong [54][56] Question: Potential for mid-teens growth for HOKA - Management expressed confidence in HOKA's growth potential, emphasizing that the brand's international growth would likely outpace U.S. growth [60][66] Question: Transition to new models and tariff costs - Management confirmed that the $150 million tariff cost is a gross number, with potential mitigations through pricing strategies [76][78]

Exhibit 99.1 DECKERS BRANDS REPORTS FOURTH QUARTER AND FULL FISCAL YEAR 2025 FINANCIAL RESULTS Goleta, California (May 22, 2025) -- Deckers Brands (NYSE: DECK), a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, today announced financial results for the fourth fiscal quarter and full fiscal year ended March 31, 2025. The Company also provided its financial outlook for the first fiscal quarter ending June 30, 2025. "Deckers delivered another exceptional y ...

Group 1 - Deckers Outdoor Corp (NYSE: DECK) is expected to report fiscal fourth-quarter earnings on May 22, 2025, with analysts forecasting earnings of 60 cents per share and revenue of $1 billion, indicating a 28% decline in earnings year-over-year and a 4% sales growth compared to last year's figures of 83 cents per share and $960 million in revenue [1] - The company primarily owns the Ugg and Hoka shoe brands, which account for approximately 68% and 29% of total sales, respectively, with Ugg sales increasing by 16% and Hoka sales increasing by 24% in the third quarter of fiscal 2025 [2] - Deckers has a market capitalization of $19 billion, with revenue for the past twelve months at $4.9 billion, operating profits of $1.1 billion, and net income of $942 million [2] Group 2 - Historical trends indicate that DECK stock has risen 61% of the time after earnings announcements, with a median one-day increase of 9.0% and a maximum recorded rise of 19% [1][6] - Over the past five years, there have been 18 earnings data points, with 11 positive and 7 negative one-day returns, resulting in positive returns occurring approximately 61% of the time, which increases to 67% when considering the last three years [6] - The correlation between short-term and medium-term returns after earnings can provide a less risky trading approach, particularly if the correlation between 1D and 5D returns is strong [4]

Core Viewpoint - Deckers Outdoor Corporation is set to announce its fourth-quarter fiscal 2025 earnings results on May 22, with investors closely monitoring the company's performance amid market challenges and opportunities [1]. Financial Performance - The Zacks Consensus Estimate for Deckers' revenues is $985.6 million, reflecting a 2.7% increase from the previous year's reported figure [2]. - The company is anticipated to experience a year-over-year decline in earnings, with the Zacks Consensus Estimate for earnings per share (EPS) at 56 cents, indicating a 32.5% decrease from the same period last year [3]. Earnings Estimates - The current EPS estimates for the upcoming quarters are as follows: Q4 2025 at 0.56, Q2 2025 at 0.79, and for the current year at 5.89 [4]. - Deckers has a trailing four-quarter earnings surprise of 36.3%, with the last reported quarter outperforming the Zacks Consensus Estimate by 15.4% [4]. Key Growth Drivers - Deckers' fourth-quarter performance is expected to be supported by innovation and brand expansion, particularly through new product launches for HOKA and UGG, with HOKA revenues projected to rise by 12.1% [6]. - The company's direct-to-consumer (DTC) channels are expanding, enhancing online and in-store experiences, which is expected to boost sales volumes and profit margins [7]. Challenges - Inventory availability, especially for UGG, is a significant concern, with a projected 13.2% decline in UGG sales for the fourth quarter due to earlier order fulfillment constraints [9]. - Increased markdowns and promotional efforts, particularly for HOKA, are likely to negatively impact margins, with gross margins expected to contract by 320 basis points [10]. Stock Performance - Deckers' stock has decreased by 13.1% over the past three months, underperforming the Retail-Apparel and Shoes industry, which has seen a 3.9% increase [11]. - Compared to peers, Deckers has lagged behind Boot Barn Holdings, which has risen by 25.4%, while Adidas and Skechers have seen slight declines [11]. Valuation Metrics - Deckers is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 19.47, which is above the industry average of 17.96 but below its median P/E of 28.53 over the past year [12]. - The stock is trading at a discount to Boot Barn and Adidas, which have forward P/E multiples of 25.30 and 24.90, respectively, but at a premium to Skechers, which has a forward P/E of 16.71 [13]. Investment Outlook - The company faces a balance between growth momentum in key brands and operational pressures that may affect profitability, suggesting that investors may consider waiting for clearer signals from the upcoming earnings report before making investment decisions [15].

Core Viewpoint - The competition in the athletic footwear market is intensifying, with NIKE and Deckers Outdoor Corporation as key players, raising questions about which stock offers better upside potential in the near term [1] NIKE Overview - NIKE maintains a strong position in the athletic footwear and apparel market, bolstered by brand equity, marketing partnerships, and a global distribution network [2] - The company is implementing a "Win Now" strategy to address macroeconomic challenges, focusing on rebalancing wholesale partnerships, accelerating innovation, and improving inventory management to stabilize performance in fiscal 2025 and enhance growth in fiscal 2026 [3][4] - NIKE is committed to innovation, introducing the "Speed Lane" development model to adapt quickly to consumer trends and launching new franchises in the second half of fiscal 2025 [5] - Despite a cautious outlook for fiscal Q4 2025, with expected revenue decline and gross margin contraction, NIKE's strong fundamentals and proactive leadership position it as a long-term investment opportunity [6] Deckers Overview - Deckers is experiencing growth driven by its flagship brands, UGG and HOKA, with UGG leading in the premium lifestyle footwear market and HOKA gaining traction in high-performance segments [7] - Innovation is central to Deckers' strategy, with new product launches for HOKA and expansion of UGG's offerings beyond winter styles, aligning with consumer preferences [8] - International expansion is a key focus, particularly in markets like China, alongside a growing direct-to-consumer segment supported by omnichannel investments [9] - However, Deckers faces challenges such as inventory availability issues for UGG, which may impact sales in the fourth quarter [10] Financial Estimates - The Zacks Consensus Estimate for NIKE's fiscal 2025 sales and EPS indicates a year-over-year decline of 10.7% and 45.6%, respectively, with a recent 5.4% increase in EPS estimates [11] - In contrast, Deckers' fiscal 2025 sales and EPS estimates suggest year-over-year growth of 15.4% and 21.2%, respectively, with a slight 0.2% increase in EPS estimates recently [11] Stock Performance - Over the past six months, DECK shares have dropped by 30%, while NKE stock has declined by 17.3%, with NIKE showing more resilience amid broader market pressures [12] Valuation Comparison - NIKE's forward price-to-sales (P/S) multiple is 2.03, below its three-year median of 2.84, indicating potential value for investors [15] - Deckers is trading at a forward P/S multiple of 3.53, above its median of 3.47, suggesting it may be pricier compared to NIKE [15][16] Investment Outlook - NIKE is viewed as a stronger investment candidate due to its proactive growth strategies, focus on performance categories, and operational discipline, positioning it for renewed momentum [17] - While Deckers benefits from brand momentum and direct-to-consumer growth, it faces challenges that could impact investor sentiment, making NIKE's scale and execution a clearer path to long-term value [18]

Core Viewpoint - Deckers Outdoor, known for its Ugg and Hoka brands, presents both investment opportunities and risks, particularly due to its reliance on consumer trends in the fashion industry [1]. Company Overview - Deckers Outdoor primarily manufactures footwear, with Ugg and Hoka being its two largest brands, contributing 68% and 29% to the company's revenue, respectively [2]. - The Teva brand is also part of Deckers' portfolio, but it is relatively small compared to Ugg and Hoka [4]. Investment Risks - The company's dependence on fashion trends poses a significant risk, as consumer preferences can change rapidly, potentially leading to declines in revenue and earnings [5]. - Current tariff issues related to production in Asia add another layer of uncertainty, although this is seen as a temporary challenge compared to the risk of declining consumer interest [6]. Positive Aspects - In the third quarter of fiscal 2025, Ugg brand sales grew by 16.1%, while Hoka saw an even more impressive growth of 23.7%, indicating strong consumer resonance [8]. - Deckers Outdoor boasts a robust balance sheet with no long-term debt and $2.2 billion in cash, providing financial stability to weather potential downturns [9]. - The stock is considered reasonably valued, with a price-to-sales ratio slightly above its five-year average, a price-to-book value ratio in line with its long-term average, and a price-to-earnings ratio notably below its five-year average [11]. Investment Considerations - The stock may appeal to growth investors due to the strong performance of its brands and reasonable valuation, but it is not suitable for income or value investors due to the absence of dividends and moderate pricing [13].

I think it's worth noting that the valuation for Deckers stock skyrocketed to an all-time high of 7 times sales in 2024. Historically, it's traded closer to 2 times sales. Its sales have soared in recent years, particularly with the success of its Ugg and Hoka brands. So the excitement was understandable. But there was valuation risk. The valuation quickly came back down as global trade conditions got more complicated. Consider that in the fiscal third quarter of 2025, its most recent quarter, Deckers gener ...