Deckers(US:DECK)2025-10-31 16:40Financial Performance - Net sales for the three months ended September 30, 2025, increased to $1,430,840, a 9.1% rise from $1,311,320 in the same period of 2024[21] - Gross profit for the six months ended September 30, 2025, was $1,341,728, compared to $1,203,272 for the same period in 2024, reflecting an increase of 11.5%[21] - Net income for the three months ended September 30, 2025, was $268,152, representing a 10.7% increase from $242,321 in the same quarter of 2024[21] - Net income for the six months ended September 30, 2025, was $407,355, compared to $357,946 for the same period in 2024, representing a 13.8% increase[27] - Diluted earnings per share increased 17.1% to $2.74 per share[91] - Comprehensive income for the quarter was $277,130, reflecting a 9.5% increase from $253,096 in the prior year[103] Sales and Revenue Breakdown - HOKA brand net sales increased 15.3% to $1,287,205, while UGG brand net sales increased 12.3% to $1,024,679[92] - Wholesale sales for the six months ended September 30, 2025, were $1,688,593, up 18.2% from $1,428,435 in 2024[46] - Domestic net sales decreased 2.1% to $1,340,788, while international net sales increased 37.5% to $1,054,590[92] - International sales increased significantly to $591,310 for the three months ended September 30, 2025, compared to $457,410 in 2024, representing a 29.2% growth[46] Expenses and Liabilities - Selling, general, and administrative expenses for the six months ended September 30, 2025, were $849,920, up from $765,379 in the same period of 2024, an increase of 11.0%[21] - Total liabilities increased to $1,318,249 as of September 30, 2025, from $1,057,239 as of March 31, 2025, marking a rise of 24.6%[19] - Cash paid for income taxes during the period was $62,566, down from $90,833 in the prior year, representing a 31.1% decrease[29] Cash Flow and Investments - Net cash provided by operating activities increased to $44,233 for the six months ended September 30, 2025, from $22,100 in 2024, marking a 100.9% increase[27] - The Company reported a net cash used in investing activities of $45,932 for the six months ended September 30, 2025, compared to $34,442 in 2024, reflecting a 33.6% increase[27] - Net cash used in financing activities increased to $475,475, a significant rise of 78.1% from $267,014 in the previous year[137] Inventory and Assets - Total current assets as of September 30, 2025, reached $2,971,475, up from $2,860,475 as of March 31, 2025, indicating a growth of 3.9%[19] - The company’s inventories increased to $835,595 as of September 30, 2025, from $495,226 as of March 31, 2025, reflecting a significant rise of 68.8%[19] - Total assets measured at fair value as of September 30, 2025, were $1,040,411, compared to $1,504,760 as of March 31, 2025[53] Stock Repurchase and Equity - The Company repurchased common stock amounting to $464,987 during the six months ended September 30, 2025, compared to $256,290 in 2024, indicating an increase of 81.3%[27] - The total number of shares repurchased under the stock repurchase program for the six months ended September 30, 2025, was 4,245,596 at a weighted average price of $109.52, totaling $464,987[78] - Total stockholders' equity as of September 30, 2025, was $2,466,030, down from $2,513,013 as of March 31, 2025, a decrease of 1.9%[19] Brand Management and Strategy - The Company plans to phase out the AHNU brand by the end of calendar year 2025, having closed Ahnu.com as of October 1, 2025[36] - The Koolaburra brand is also being phased out, with Koolaburra.com closed at the end of the prior fiscal year and plans to wind down in the wholesale channel by the end of calendar year 2025[36] Tax and Compliance - The effective income tax rate for the three months ended September 30, 2025, was 21.7%, compared to 24.0% in 2024[57] - The company expects cash tax savings due to the full expensing of US research and development expenses following recent tax law changes[58] - The company remains in compliance with all financial covenants under its revolving credit facilities as of September 30, 2025[138]