Deckers(DECK) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for the three months ended December 31, 2024, were $1,827,165, an increase of 17.1$1,560,307 for the same period in 2023[17]. - Gross profit for the nine months ended December 31, 2024, was $2,305,895, representing a 24.8$1,846,012 in the prior year[17]. - Net income for the three months ended December 31, 2024, was $456,734, up 17.1$389,919 in the same period last year[17]. - Net income for the nine months ended December 31, 2024, was $814,680,000, an increase from$632,018,000 in the same period of 2023, representing a growth of approximately 29%[24]. - Diluted earnings per share increased by 32.3% to $5.33 per share[88]. - Income from operations grew by 28.3$1,005,167 for the nine months ended December 31, 2024[88]. - Net income increased by 28.9% to $814,680 million, with net income per share rising by 31.8$5.35[115]. Assets and Liabilities - Total current assets increased to $3,274,112 as of December 31, 2024, compared to$2,443,483 as of March 31, 2024, reflecting a growth of 34%[16]. - Total liabilities rose to $1,333,434 as of December 31, 2024, from$1,028,111 as of March 31, 2024, indicating an increase of 29.7%[16]. - The company’s total assets reached $3,964,353 as of December 31, 2024, compared to$3,135,579 as of March 31, 2024, marking an increase of 26.4%[16]. - The company’s retained earnings increased to $2,424,898 as of December 31, 2024, from$1,913,615 as of March 31, 2024, reflecting a growth of 26.7%[16]. - Cash and cash equivalents increased to $2,240,923 as of December 31, 2024, compared to$1,502,051 as of March 31, 2024, a growth of 49.3%[16]. Sales Channels and Growth - Direct-to-Consumer (DTC) net sales rose by 19.4% to $1,719,569 million, reflecting strong consumer acquisition and retention[116]. - Wholesale channel net sales rose by 18.9$2,244,263, while Direct-to-Consumer (DTC) channel net sales increased by 19.4% to $1,719,569[88]. - International net sales surged by 28.1$1,424,775, contributing to a total of 36.0% of net sales for the three months ended December 31, 2024[78]. - The HOKA brand continues to gain traction, contributing to a more even distribution of sales throughout the year, which is expected to reduce the impact of seasonality on overall performance[30]. Expenses - Selling, general, and administrative expenses for the nine months ended December 31, 2024, were $1,300,728, up 22.4$1,062,760 in the previous year[17]. - Selling, General, and Administrative (SG&A) expenses increased by 22.4% to $1,300,728 million, primarily due to higher variable advertising and promotion expenses[115]. - The company reported a depreciation, amortization, and accretion expense of$50,911,000 for the nine months ended December 31, 2024, compared to $40,901,000 in the previous year, which is an increase of approximately 24$301,011,000 during the nine months ended December 31, 2024, compared to $310,635,000 in the same period of 2023[24]. - A six-for-one forward stock split was executed on September 13, 2024, increasing the number of authorized shares from 125 million to 750 million[32]. - As of December 31, 2024, the Company has$640,692,000 remaining approved for stock repurchases under its program[69]. - The Company has a total unrecognized stock-based compensation of $50,375,000 as of December 31, 2024, with a weighted average remaining vesting period of 1.2 years for RSUs and 1.0 year for LTIP PSUs[65]. Other Comprehensive Income and Tax - The company recorded a gain of$6,575,000 in other comprehensive income (OCI) for the three months ended December 31, 2024, compared to a loss of $1,318,000 in 2023[68]. - For the nine months ended December 31, 2024, the income tax expense was$237,327, with an effective income tax rate of 22.6%[50]. - The effective income tax rate for the three months ended December 31, 2024, was 21.8%, slightly down from 21.9% in 2023[50]. Strategic Changes - The company completed the sale of the Sanuk brand on August 15, 2024, which did not represent a strategic shift affecting consolidated results[39]. - Deckers plans to phase out standalone operations for the Koolaburra brand by the end of the current fiscal year, with a complete wind-down expected throughout calendar year 2025[40]. - The Koolaburra brand's standalone operations are being phased out to focus on more significant organic opportunities[90].