The following is a summary of the Deckers Outdoor Corporation (DECK) Q2 2025 Earnings Call Transcript:
Financial Performance:
Deckers Outdoor Corporation reported a robust Q2 revenue of $1.3 billion, reflecting a 20% year-over-year increase.
Diluted earnings per share for Q2 stood at $1.59, marking a 39% improvement from the previous year's $1.14 per share.
Gross margin improved significantly to 55.9%, driven by favorable brand and product mix and strategic pricing, despite freight headwinds.Inventory levels at quarter end were up 7% year-over-year to $778 million.
The company repurchased approximately $104 million worth of shares during Q2.
Business Progress:
HOKA brand surpassed $2 billion in revenue over the trailing 12-month period.
Significant new product launches include Skyflow, Mach X 2, and enhancements to the SpeedGoat and Tecton lines.
Strategic retail and digital partnerships have been pivotal, notably the introduction of Grammy nominated Post Malone as an ambassador for UGG's men's business.
Opportunities:
International growth, particularly in Asia and Europe, remains a key focus, with successful market penetrations and consumer engagement strategies.
New product developments and updates such as Clifton and Bondi are expected to fuel continued revenue growth.
Increased investments in diverse marketing initiatives tailored to local markets internationally.
Risks:
Future promotional activities are anticipated due to more product inventory in the wholesale channel, deferring some potential revenue to later quarters.
Potential impacts from macroeconomic factors including inflation pressures and supply chain disruptions may affect performance and operational costs.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
