Deckers Stock Falls 15% Despite Reporting Q4 Earnings & Sales Beat

Core Insights - Deckers Outdoor Corporation (DECK) reported strong fourth-quarter fiscal 2025 results, driven by the performance of its HOKA and UGG brands, with earnings per share of $1.00, exceeding expectations [1][3] - The company did not provide guidance for fiscal 2026 due to macroeconomic uncertainties, leading to a 15.3% decline in shares during after-market trading [1][15] Financial Performance - Net sales increased by 6.5% year over year to $1,021.8 million, surpassing the consensus estimate of $993 million [3] - Gross profit rose 7.5% year over year to $579.8 million, with a gross margin of 56.7%, up from 56.2% in the prior year [4] - Operating income was $173.9 million, a 20.6% increase from the previous year, with an operating margin of 17% [6] Brand Performance - HOKA brand sales grew by 10% year over year to $586.1 million, while UGG brand sales increased by 3.6% to $374.3 million, exceeding estimates [7] - Other brands, including Teva, AHNU, and Koolaburra, saw a decline in sales by 6.3% to $61.3 million [7] Sales Channels and Geography - Wholesale net sales increased by 12.3% year over year to $611.6 million, while DTC net sales decreased by 1.2% to $410.2 million [8] - Domestic net sales remained flat at $647.7 million, whereas international net sales rose by 19.9% to $374.1 million [8] Financial Position - As of March 31, 2025, cash and cash equivalents were $1.89 billion, with total stockholders' equity at $2.51 billion and no outstanding borrowings [9] - The company repurchased 1.78 million shares for $266 million in the fourth quarter and 3.80 million shares for $567 million in fiscal 2025 [10] Future Outlook - For Q1 fiscal 2026, DECK expects revenues between $890 million and $910 million, with HOKA projected to grow in the low-double digits and UGG in the mid-single digits [13] - Gross margin is anticipated to decline by 250 basis points due to higher freight costs and increased promotional activity [13] - SG&A expenses are expected to rise slightly faster than revenues, reflecting continued investments in brand marketing [14]