Deckers(US:DECK)2026-02-03 16:42Financial Performance - Net sales for the three months ended December 31, 2025, reached $1,957,549, an increase of 7.1% compared to $1,827,165 for the same period in 2024[19] - Gross profit for the nine months ended December 31, 2025, was $2,513,088, reflecting a 9.0% increase from $2,305,895 in 2024[19] - Net income for the nine months ended December 31, 2025, was $888,500, a 9.1% increase from $814,680 in 2024[19] - The company reported a basic net income per share of $3.34 for the three months ended December 31, 2025, compared to $3.01 in 2024, an increase of 10.9%[19] - Net income for the nine months ended December 31, 2025, was $888,500, compared to $814,680 for the same period in 2024, representing a year-over-year increase of approximately 9%[24] - Income from operations for the nine months ended December 31, 2025, increased by 10.0% to $1,106,174[87] - Net income grew by 9.1% to $888,500, with net income per share increasing to $6.05 from $5.35, a rise of 13.1%[117] Assets and Liabilities - Total assets as of December 31, 2025, amounted to $4,102,150, up from $3,570,252 as of March 31, 2025, representing a growth of 14.8%[18] - Total current liabilities increased to $1,149,443 as of December 31, 2025, compared to $769,941 as of March 31, 2025, marking a rise of 49.2%[18] - Total stockholders' equity as of December 31, 2025, was $2,609,454, up from $2,513,013 as of March 31, 2025, representing a growth of 3.8%[18] - Retained earnings as of December 31, 2025, were $2,374,985, up from $2,307,699 as of March 31, 2025, indicating an increase of 2.9%[21] Sales Performance - Direct-to-Consumer sales for the nine months ended December 31, 2025, were $1,799,764, up from $1,719,569 in 2024, reflecting a growth of 4.7%[43] - Domestic net sales for the three months ended December 31, 2025, were $1,200,889, compared to $1,169,291 in 2024, indicating a growth of 2.7%[43] - International net sales for the three months ended December 31, 2025, were $756,660, up from $657,874 in 2024, representing a growth of 15.0%[43] - HOKA brand net sales rose by 16.3% to $1,916,087, while UGG brand net sales increased by 8.0% to $2,330,154[87] - Total wholesale net sales increased by 13.8% to $2,553,163, while direct-to-consumer sales rose by 4.7% to $1,799,764[110] Expenses - Selling, general, and administrative expenses for the nine months ended December 31, 2025, were $1,406,914, compared to $1,300,728 in 2024, reflecting an increase of 8.1%[19] - SG&A expenses increased by 8.2% to $1,406,914[87] - The company reported a depreciation, amortization, and accretion expense of $57,141 for the nine months ended December 31, 2025, up from $50,911 in 2024[24] Cash Flow - Cash provided by operating activities for the nine months ended December 31, 2025, was $1,086,113, slightly down from $1,117,515 in 2024[24] - Cash and cash equivalents at the end of the period were $2,086,746, compared to $2,240,923 at the end of the previous year[24] - The company experienced a net change in cash and cash equivalents of $197,558 for the nine months ended December 31, 2025, compared to $738,872 in 2024[24] - The net cash used in financing activities increased significantly to $824,371, up 160.4% from $316,638 in the previous period[132] Stock Repurchase - The company repurchased common stock totaling $813,488 during the nine months ended December 31, 2025, compared to $301,011 in the same period of 2024[24] - The total number of shares repurchased in the nine months ended December 31, 2025, was 8,019,067 at a weighted average price of $101.44 per share, totaling $813,488,000[73] - The remaining authorized shares for repurchase under the stock repurchase program as of January 13, 2026, is $1.77 billion[153] Tax and Compliance - Income tax expense for the three months ended December 31, 2025, was $145,768, with an effective income tax rate of 23.3%[52] - The effective income tax rate increased to 22.9% from 22.6%, primarily due to jurisdictional mix and reduced tax benefits[116] - The company is monitoring the impact of recent tax law changes, including the One Big Beautiful Bill Act, which has provided cash tax benefits in the current fiscal year[58] Other Comprehensive Income - The company reported a total other comprehensive loss of $11,686 for the nine months ended December 31, 2025[24] - The accumulated other comprehensive loss (AOCL) as of December 31, 2025, is $46,068,000, which includes an unrealized loss on cash flow hedges of $3,980,000[74] - Total other comprehensive income increased significantly by 176.1% to $3,586, driven by higher foreign currency translation gains[118] Operational Changes - The company has phased out standalone operations for the AHNU brand and Koolaburra brand, closing their respective websites and completing the transition in the wholesale channel[33] - The company entered into a 3PL service agreement with a minimum commitment of approximately $93,611 payable through March 31, 2029[59] - The company is evaluating the impact of several upcoming Accounting Standards Updates (ASUs) on its financial statements, with planned adoption periods ranging from Q1 FY 2027 to Q1 FY 2029[41]