Deckers(US:DECK)2025-07-24 21:32Financial Data and Key Metrics Changes - The company reported total revenue of $965 million, a 17% increase compared to the previous year [9][33] - Diluted earnings per share rose 24% to $0.93, up from $0.75 in the prior year [33] - Gross margin for the quarter was 55.8%, down 110 basis points from last year's 56.9% [33] Business Line Data and Key Metrics Changes - HOKA's global revenue increased 20% to $653 million, with wholesale up 30% and DTC up 3% [11][24] - UGG's global revenue rose 19% to $265 million, with wholesale increasing 30% while DTC decreased by 1% [24][33] Market Data and Key Metrics Changes - International revenue increased by 50%, with significant contributions from both HOKA and UGG [9] - EMEA and China were highlighted as key regions for growth, particularly for HOKA [12][25] Company Strategy and Development Direction - The company aims to build premium brands focused on authenticity, innovation, and purpose, with a disciplined investment strategy [10] - HOKA is expected to continue as the fastest-growing brand, while UGG is anticipated to grow internationally at a faster rate than in the U.S. [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current uncertainties, citing strong brand performance and consumer engagement [43] - The company is cautious about macroeconomic factors, particularly regarding tariffs and their impact on consumer behavior [37][39] Other Important Information - The company repurchased approximately $183 million worth of shares during the first quarter [36] - The tax rate for the quarter was 24%, slightly higher than the previous year's 22.5% [34] Q&A Session Summary Question: HOKA's second quarter guidance and inventory status - Management indicated that HOKA is expected to grow 10% in Q2, with improvements in both wholesale and DTC channels [49][50] - Inventory for older models like Bondi Eight and Clifton Nine is largely cleared, with positive performance for new models [52] Question: DTC growth and retail strategy - Management confirmed expectations for balanced growth between wholesale and DTC, with improvements anticipated in the U.S. market [60][62] - The company plans to expand its retail footprint, with new stores opening in key locations [64] Question: Price increase strategy - Price increases have been implemented selectively, with expectations for further adjustments based on tariff impacts [73][76] - The company is evaluating price increases across various product lines, including both new and existing models [76] Question: HOKA's international performance - International growth is driven by strong sell-through rates and increased distribution, particularly in Europe and China [92] - Management noted healthy order books for the upcoming seasons, indicating robust demand [93] Question: SG&A outlook - SG&A expenses are expected to increase as the company invests in brand building and marketing efforts [95][98] - Management emphasized a disciplined approach to spending while maintaining efficiency [95]