Deckers Stock Soars 14% as the Footwear Specialist Crushes Sales and Earnings Expectations and Raises Annual Guidance (Again)

Core Insights - Deckers Brands reported strong financial results for Q2 of fiscal 2025, exceeding Wall Street expectations, with shares rising 13.6% in after-hours trading [1] - The company has raised its fiscal 2025 guidance for both revenue and earnings, marking the second consecutive quarter of upward revisions [1][7] Financial Performance - Q2 fiscal 2025 revenue reached $1.31 billion, a 20% increase from $1.09 billion in Q2 fiscal 2024 [2] - Operating income rose to $305.1 million, up 36% from $224.6 million year-over-year [2] - Net income increased to $242.3 million, also a 36% rise compared to $178.5 million in the previous year [2] - Earnings per share (EPS) grew by 39% to $1.59 from $1.14 in the same quarter last year [2] Margin and Cash Position - Gross margin improved to 55.9%, up from 53.4% in the prior year [3] - Cash and cash equivalents at the end of the quarter were $1.23 billion, significantly up from $823.1 million year-over-year, with no long-term debt [3] Brand Performance - HOKA brand sales surged to $570.9 million, a 35% increase year-over-year, driving significant growth for the company [4] - UGG brand sales reached $689.9 million, reflecting a 13% increase [4] - Teva brand sales were $22.0 million, up 2%, while Sanuk and other brands saw declines of 48% and 16%, respectively [4] Distribution and Geography - Direct-to-consumer (DTC) sales were $397.7 million, a 20% increase, while wholesale sales also grew by 20% to $913.7 million [5] - Domestic sales totaled $853.9 million, a 14% increase, while international sales rose 33% to $457.4 million [5] Management Commentary - CEO Stefano Caroti emphasized strong consumer demand for HOKA and UGG products and a commitment to growth through innovation and a consumer-first approach [6] Updated Guidance - Revenue guidance for fiscal 2025 has been raised to a 12% year-over-year increase, now expected to reach $4.8 billion, up from a previous estimate of 10% growth [7] - EPS guidance has been adjusted to a range of $5.15 to $5.25, reflecting a growth of 6% to 8% [7]