DECK - Earnings call transcript Q1 2025 | Deckers Outdoor Corporation

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Operator

Good afternoon, and thank you for standing by. Welcome to the Deckers Brands First Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] I would like to remind everyone that this conference call is being recorded.

I will now turn the call over to Erinn Kohler, Vice President, Investor Relations and Corporate Planning.

Erinn Kohler

Hello, and thank you, everyone, for joining us today.

Dave Financial and our Officer; Officer incoming is Steve Executive Chief call and Chief Fasching, and CEO. the Powers, Chief President Officer; Commercial On Stefano Caroti,

to the the like certain that from subject uncertainties. made meaning Act on forward-looking remind would of Please are statements I These Securities are call within intended securities begin, harbor policy. we everyone liability Reform Before of statements and company's this forward-looking the safe note harbor safe to by risks the laws, qualify to which of the considerable Private are Litigation established for statements XXXX. federal

statements All products, strategies, DTC, strength the capital plans performance, currency of and activity, anticipated timing transition. expenses, the promotional impacts and disruptions logistics, fluctuations changes macroeconomic and demand our on from foreign rates, and impact this statements include behavior, than other inventory statements achieve to marketplace brands, for in including our outlook our regarding ability financial consumer and levels our mix, the our in channel brand chain revenue, environment operations marketing product and of exchange margins, strategies, allocation, statements anticipated and and our and and today, management and the objectives, of made our impact strategies, our performance fact, strategic forward-looking including supply to expected leadership on planned historical our distribution are current product of call long-term

are expectations available the on information made Forward-looking at and management's call statements are such on statements based current this represent time the made.

the its these actual results to Except that and unknown annual statements. uncertainties its the forward-looking listing or risks, by predicted, Form required filings, differ company or by section Factors the XX-K the some Stock may numerous SEC any or in materially known obligation XX-Q. cause to Exchange, and expressly Form uncertainties statements report of any explained and intent other law has as quarterly involve The update including implied New risks company forward-looking reports York assumed any from in on the on factors rules results our Risk of disclaims and statements. of Forward-looking

may call, in were generally the refer United that not accounting management including financial prepared principles this accepted accordance to measures States with constant currency. On in

because basis addition, In that that of currency were comparable are measures may indicators reports and on operating items throughout unrelated that financial non-GAAP indicative performance important reporting constant for believes the its open the exclude sales be periods. The a results. are company they direct-to-consumer to prior company core and current these operating its operations of not

turn With to it Dave. that, over I'll now

David Powers

Thanks, and thank Erinn. Good everyone, for joining you afternoon, us.

here being call to year I for results to am build month, to of the future company. final year to this confident I that today another torch at Stefano to be pass I'm With my discuss Deckers strong the as glad start laid the excellent fiscal this deliver team end has they XXXX. groundwork our the of before the amazing the of

by improving highlighted $X.XX. to last versus to gross last and million, $XXX is to revenue performance quarter growing versus year margin per first earnings Deckers' Specifically, XX% increasing diluted XX% share XX.X% year

demand robust brands captured DTC year DTC UGG relevancy year healthy build as iconic to versus year-round across Both versus regions with increased marketplace last XXXX this led increased XX% to products. through wholesale and XX% for international increasing as year, global were main continues with it the versus results by our objectives above growth. last was increased consumers last million, XX% and year Importantly, aligned last quarter's XX% our our driver, versus closely fiscal HOKA growth year as $XXX

But in the deliver first, give will quarter, share to unique outlook on results, XXXX. for These we Stefano include review Officer in further year increased before and provide to updated profitability the our benefits us of our Steve some reflected later specific quarter updated to first it which the confidence details some I Chief our incoming full can incredible outlook that from the will Commercial turning CEO, over call. our channel Caroti brand first performance. highlights fiscal

new Mach, the by with $XXX global to marketplace. was XX% demand quarter revenue More experienced compelling across the brand Starting record last the launches, performance brand's Global outsized to healthy the HOKA of the Skyward styles top first highlights. in and growth. and strong experience and assortment, Cielo Transport brand volume drove driven HOKA innovation. like year X, styles quarterly product versus continued to franchises Kawana million. incremental increased the attention new XX including segmentation the specifically, Bondi brand's which a through Skyflow Emerging gains greater the like and and brought and Clifton like

that build segmentation such distribution through styles, into hero allow these Clifton products, introduction model demand increasingly treatments incremental and brand out the to Diving edition The styles. of demand for and franchises of key sell HOKA. lifestyle offering for gateway differentiation as regularly top to collaborations popular limited as our versions leading unique remain for partners continues franchises the Bondi and satisfy updates of these

expansive we're designed across success. greater the QX. the work highlighting the is the universal to with sell-through In consumer has collection the in the merchandising of HOKA Mach been launch, branding adoption product X skewing redesigned attributable distribution. far, has fantastic the that believe want in of HOKA from team HOKA variations who and being demand points across acquisition and top style the color are is upgraded start Thus emerging resulting driving Mach which we of encouraged for in of franchises, Mach terms the to and marketplace, I and This U.S. for younger Mach, X seeing revenue and Mach strong a the the We allow considerable which EMEA. consumer differentiation global by experienced a by

revenue. lifestyle styles saw the ranked continue we top these in DTC and growth see styles by to athletic perform with our Both Kawana, in quarter, the landing and Transport brand's HOKA partners. well XX explosive them in Regarding our styles channel

light and them designed Transport hiker fitness more as consumer a respectively, the were the increasingly shoe, for wear. Kawana While versatile casual adopting and is and

and the International Big On outperformed the and it key of innovation Tokyo HOKA Half X HOKA Marathon, the cushion advanced expectations. HOKA performance. London focus reinforces Sur in The of styles, efforts FlyLab These Boston groundbreaking position Marathon origins XX which and has the our Marathon. been as Marathon, part celebrated far particular, brand's as have in most brand were X Skyward Skyward as our such Cielo marketing performance-leading front, was and events the the styles Hackney a the experience, Mach's at worldwide featured leadership

but brands experience also more product premium This to style on with focused success Skyflow, commercial launched range. Cielo Skyward product XX much HOKA its The days and an technologies. for which which all-new X-inspired of within emboldens creating exciting at Skyward geometry the ago, about is envelope combines the maintaining daily innovation, and a style, the to styles critical performance upgraded HOKA roots is an elevated runs. only our continue The pushing compounds, team price innovative like of point the foam

our specialty its global Skyflow while the is and the our developed brand's to elevate DTC everyday performance continuing as marketplace. for partners, differentiating As part segmentation HOKA of run a our co-exclusive efforts, lineup

retail this from are partners in feedback receiving consumers launch. days our the and We early of great

across strength is brand's product The the global lineup performance of evolution marketplace. continued the of by HOKA amplified the

opportunity. through year. versus During balanced wholesale last acquisition year consumer last consumers the see loyalty, the revenue reason first for in the drove to reflection we increasing this retained XX% with runway we gains focused while and remain building quarter. DTC there HOKA quarter, HOKA We is revenue believe powerful retention brand's increasing perspective, among channels brand continues DTC particular and with a HOKA first From across growth HOKA XX% are long global on and of consumer versus awareness the experience reinforcing strength this the a significant

with approach points of through Part partners. awareness is expanded our of HOKA building key to distribution brand

in which quarter. the HOKA strategic around select the During we world, with added the to quarter, wholesale doors contributed growth partners

adding sell-through. continued and We the refilled in continue high space to market see brand gaining the share channel levels and price full also shelf as inventory of

building media origin brand's a July campaign. of latest FLY to FLY of of new the exhilaration captures through The life activations launched and chapter and integrated the XXX-degree brand's of earned the movement. distribution, Outside connected joy is story inclusive X, the is HUMAN with marketing content, and community in which awareness on cities. brings new Birds in-person the adding of its and The social campaign centerpiece campaign, global HOKA TV, out-of-home Eye, HOKA brand film key film

HOKA to with connections campaign All around aimed brand elements love and the HUMAN world. deepening of new the FLY introducing consumers are of consumers, inspiring the FLY at

the are all Bird's and really I this you proud of hope out Eye when campaign, film a have you We elevated chance. check

excellent with DTC brand and to consumers year on consumer an demand across laser-focused innovations. executing start the markets, enhanced on global build team the Overall, with is The for through brand share this to focus with quarter excite global was and retention strategy performance HOKA healthy an market awareness international markets. expand full-price gains, acquisition and

global quarter of to Golden the increased with driven year-round in Performance of expanded by in momentum, DTC in robust key revenue million. growth last full franchises the price XX% quarter demand. UGG. iconic continued first to and reflecting UGG the in the momentum selling increased $XXX Global earlier strong versus was Collection, Shifting increased year wholesale U.S., adoption

and excitement demand with the the The first champions well team has being reflects the product continued job UGG that as time. year-round evidenced the the creating we by versatile consumer-informed, to year-round relevant believe by This a demand Collection. wearing building UGG are brand expand for has driven progress seasonally Tasman in longer done continued build occasions, an UGG is allowing product. franchise of best for consumer codes by the and is and the brand's periods We increased fantastic over Golden it as brand adoption in as and encouraged of purpose quarter sustain product growth

to of thoughtful of mind management for and marketing styling our Tasman's relevance strong that UGG marketplace, the The drive in across ability consumers. to selling continued speaks activations its the of the preserve versatility brand's global the power the franchise its

has create Tasman to the brands versions marketing franchise various on and with designers UGG collaborated exclusive front, Specifically styles. of

Wang across Chen London-based Feng Tasman collaboration her particular, and and at -- was was in featured During Vogue, the Spring/Summer Tasman collection of first featured our part cultural and Her including collaboration, Highsnobiety. quarter, XXXX collection born Week. fashion Hypebeast Paris as Fashion Chinese the influential with and designer unveiling upcoming publications,

the Of maintain for of The XX collaborations first led to collection increase brand's expansion extremely year, to current is in consumer UGG ability in this an also interest marketing Golden demand through newer the benefiting which franchises the performed of Collection team's exciting well. franchise UGG of quarter like also activations in came quarter, The in by top the to Collection. styles and international consumer ranked X Collection, from silhouettes in the brand Golden this the U.S. were The first regions. key revenue, and drivers equally Golden the the X new were which in brand's the UGG was strong DTC success which Tasman year.

brand's promotion on to lower season majority UGG seasonal to influenced The of more franchises quarters, discounting demand, first driving of relevant the of is more contributed end has the historically prior assortment as DTC consumer been business compared where colors. focused by which

maintain continue is to to year-round strength the do it expected of to throughout the this speaks XXXX, dynamic think not fiscal demand. brand its and year we ability While

global with beyond. self-expression premium the brand social things to to of deliver to the come starts levels has ethos experiences that media, of UGG demand our campaign, of a are fiscal marketing the track and Feels continue UGG UGG another elevated connections. multisensory consumer global strong with for and of high well dynamic year Both connected campaign a UGG group of year on community healthy and will who ahead community. features launch of marketplace The across HOKA Like evoke Feels life creators that year The Like capturing positioned upcoming which enhance in its brand's remainder through is promote exciting events and growth in-store the this and UGG. off to consumer are and products activations XXXX

Stefano an review Before in passing off Deckers' give to to excellent channel first want Steve, to the opportunity quarter. performance I

leading today becoming August has him CEO one of Stefano As time I'm you successfully now to the capacity for Stefano? our will X. current know, his next on areas welcome be as Deckers of excited on to some speak he Chief Officer. Commercial been all in

Stefano Caroti

Thanks, Dave.

It's great with highlights here global all Deckers' and marketplace. the to be you within channel today share

over lead leadership an me want I have in, to exciting for I'm Dave ahead. his diving thoughtful, over Before been the last X to X transition opportunity our mentorship Dave and in on throughout enlightened has last Deckers extremely valuable the the and months. the for particular, journey to resource thank years, the continued thrilled provided

performance into the channel in Diving quarter.

to reflect marketplace the driving demand, management has price channels was consumer well more between continue a of wholesale results we of Deckers' Our global story full which model executed our that selling. This maintained year, successful high pull a and growth in signaled balanced DTC quarter. levels first much

the quarter, For on the we DTC gains positive last the versus DTC majority drove also increased a year contributions basis saw HOKA of reported XX% in a brand. comparable XX% global basis. channel, on the and UGG but from

most respectively. and robust in international drove strong openings. benefited was international growth DTC recent store a within From and increases retail both growth China standpoint, online from successful as EMEA XX%, across XX% U.S., and regions meaningful regions, was the increased which Among and regional

global DTC, of wholesale, year. similar gains last Similar drove XX% strength and the increased HOKA with year-over-year U.S. the Regarding versus volume revenues international in regions. to the majority

particularly HOKA business and in demand exceptional wholesale from strong partners U.S. and margins the was driven channel. brands comparisons. price was see across continues brand growth wholesale favorable delivered from UGG to as year-over-year by in Growth gross earlier the the benefited full as both Our

business and across global our our both balanced our the management. outstanding brands channel of demand health marketplace team's The reflects the for

sharing look start with quarter. are 'XX next great brands fiscal forward off Our to and a to you to I more

Steve details on well further results to as our for first outlook to With financial provide our updated hand financial over I'll quarter fiscal that, as 'XX.

Steve Fasching

good afternoon, everyone. and Stefano, Thanks,

in towards to results demonstrated that strong leading delivered great our and increased within our Deckers the cover quarter guidance first shortly. progress outlook fiscal full profitability I'll year

continues a full both solid channels As and quarter, in price of in wholesale U.S. main as to quarter its build Dave market DTC as share. gains brand and business the and the delivering brand global demand channel the growth global the see outlined, HOKA delivered to wholesale awareness in healthy DTC driver in was continued the the the increased UGG

to As consumer against managing approach nimble our very executing long-term dynamic the we environment, growth the business will operate strategic continue remain our to for in in we sustainable a priorities. and

portfolio Our brands positions marketplace. continues consumers, us of resonate well to global which with leading in the

prior global fiscal exceptional HOKA was XX% up into experienced get Revenue year of as the the results. detail increased $XXX year. first due was the last Growth With by XX% primarily brand demand our that, XXXX quarter million, brand's let's versus year marketplace. driven the versus the to across

increased in Additionally, the quarter, certain refill in inventory through primarily the the wholesale gains as to UGG marketplace. continues XX%, brand

was last was basis XX.X%. margin from Gross which points quarter year's for the XXX up XX.X%,

proportion brand, prior UGG which the as quarter this As primarily and for more as be of margin compared to to rates highest-margin larger in favorable gross last benefited mix this well in promotional lower quarter, product first recognized from first particularly are products a brand both brand, with headwind a our selling, HOKA within anticipated drove higher-margin higher UGG HOKA, of levels of year, as the full growth, year the and remainder was freight which price year. quarter, and

SG&A the million, quarter which $XXX up XX% dollar in first $XXX spend from million. is last was year's

in investment As to last dollar the of was growth functions in include HOKA SG&A higher investments to XX.X% to was support global awareness our the spend, business year related growing versus driven of key compared which of prior within key revenue, year. SG&A support growth by and expanding marketing in organization. a in talent primarily XX.X% initiatives, our percentage areas

above XX.X% and lower which a our as $X.XX of coupled of count of with result prior rate higher for in which These program, compares year's the per income the year. quarter, tax share share $X.XX XX%. representing growth share, earnings the XX.X%, per interest diluted results, Our drove repurchase to was $X.XX share last was

and billion no million, last equivalents. Turning with in had June the and of to point $X.XX time outstanding $XXX we up XX, borrowings. cash same X% year, At our balance XXXX, June we ended versus Inventory was sheet.

shares average quarter, the of million an $XXX repurchased $XXX.XX. we price of During worth at approximately first

As of stock authorization. the June million approximately XX, under had remaining $XXX repurchase company XXXX, its

Now year to to XX% approximately revenue fiscal outlook and total XXXX. our $X.X grow moving mid-single-digit grow versus of to is still in the still expect billion grow updated year inclusive still last HOKA, expected which company approximately is into for UGG, which XX% to expected We range.

prior for of approximately our XX%, up that guidance our are We gross results are remainder increasing be points basis first the on included to strength repeat year. expected based now the the benefits of from is quarter which which to our not expected near-term XX fiscal margin,

reminder, the more in freight brought to now will lower as be a experiencing include year costs fiscal year. in XX.X%, with to promotional XX%. and XX.X% range investing a and higher related margin incurred expensed SG&A XXXX environment to the in full the full-price to to As of remainder our now normalized exceptional delivered we expected levels year assumptions committed in the our Operating that inventory to initiatives. key for still of remain relative be fiscal range be to selling the in XX% of expected in the is the growth is

Our range of projected to XX%. in rate still be effective to tax XX% the is

now an representing a we diluted result our Please high XXXX. as end. increasing divest the to which brand, have on release into close Sanuk entered of earnings per agreement we expectations the are we increase $XX.XX a these be August to in note, afternoon, range changes, this $X.XX in of to As our the expect mentioned to in share $XX.XX,

this that business be or Further, from guidance. excludes from nonrecurring to been impact guidance ongoing charges As repurchases. such, share any considered forward-looking unforeseen ongoing the future may Sanuk has business our removed our any

which in risks uncertainties, guidance changes of pressures, supply deterioration but tensions. geopolitical pressures, our include, to, are currency fluctuation current consumer disruptions chain and confidence in assumes foreign exchange and recessionary rates, not meaningful limited no and inflationary Additionally,

addition, approval as outstanding at the stock our reflected in of recently of our our impact approved stock a forward guidance. stockholder split on XXXX most pending which is Board September capital The to our In you split for EPS X have potential stock Annual held X. may of X seen, Meeting be is not

and in year robust model, we to increased us the position full remain operating profile marketplace our brands in-demand confident ability fiscal evolving ahead, our to financial Looking dynamics. global to guidance well as adapt deliver disciplined

am Dave his my years time, for to last especially with Before appreciation want call pleasure I best I Deckers have a to to has the our X as him for back last It CEO. member your wish with achieved Dave, for the all I and into a with company proud together I him. in our a XX hand industry-leading as working years, the all Board. last express of genuine you future privilege building been we I exciting of an the look retirement, ahead. together, forward and you working an

back everyone. for Thanks, remarks. final his to the hand I'll Dave call now

David Powers

you, for earlier. the appreciate to I you for do all the Thank Stefano for and words your remarks continue Steve, kind organization. kind Deckers

guidance HOKA these innovative gives The I consumers Deckers for poised confidence us and demand. that continued achieve UGG long-term updated for momentum delight to believe brands of and are unique driving continue products excite success. and to the is year. our with increased

embrace world Time For, and XXXX organization news of global culture, to reports, as Deckers approach a I management engaged companies to of a world's of as Companies management Best our marketplace, am built we Work sustainable being employees of purpose-led With have well a most one well-managed the magazine's XXXX. the X culture team, XXXX aligned U.S. a proud brands, the and what have financial as these to and focused and within disciplined powerful who strength and externally recognized for

Before to are operator, few like things handing a I'd off the there to add.

success. thank on sincerely the to and together maintaining to and developing thank years a approach Steve and recognized and Steve through model you, want our Deckers' want strong for just and amazing I has I an deserves say to tremendous lot sheet. been Steve leadership and his Steve. to X to be balance a me over disciplined has Fasching. First, We've impact had partner fortified strategic past our been operating

working these strategy I you've have them It for Andy Investor our also been continue has want outstanding team. They communicating calls. Deckers. going with us calls I'm an actually all earnings preparing to done thank with Relations job both. Deckers' and and to you miss quarterly for done on a these Thank you. all Erinn will do of and at pleasure to

gratitude and thank but I the company all lifetime the I to last employees years want during I am our Lastly, dedicated we making want place all Deckers only the for a work. Deckers of not also express a for It X leading proud final honor been time. has to of of an time. amazing successful accomplished to together for this my

good your as maintaining results along leadership great of We team, amazing leading leadership and the can an want have hands truly will continued Deckers. all our and that that a that on culture together team we better excellent and management behalf our for do no thank and organization with do Deckers great. time team. exceptional for and proven he everyone job of build I we I support. of employees, last listening One doing strong while our our of have with are to Stefano this future lot is his in and doubt he,

With Q&A. that, for the I'll the call to Operator? over operator turn

Operator

first Instructions] Komp [Operator Jonathan Baird. line question Our from comes from the of

Jonathan Komp

to run but for this approach congratulations just in here. say in congratulations order Dave, certainly typical my certainly think not incredible I are forum, an

David Powers

Thank Jon. you,

Jonathan Komp

And industry. turn just how to of launches HOKA just year, I more XX% that of a of, ask distribution the you exceeded you how product you're the points year the bit want then the share that planning little still footwear maybe the the year? you're start. Could balance after the data about for mixed growth light and planning shape momentum Really you're in to we the as your think business, about to frankly, seeing in given to business, the

David Powers

Good Yes. question.

multichannel, of business. global I to -- think this of a a subset of it's in multi-brand in a think ways. data be think little the context global we're can misleading I important of company, some business bit just And think I that

So the I in the super year. confident we're remainder our speak I quarter, themselves think past the results for -- think in and of

the I'll is the here And of where little from talk about going Stefano for rest year. business let a the bit more

Stefano Caroti

Jon, keep in full mind, great long-term We and build guidance. we health for a and closed QX, confident our brands just growth. year we're in sustainable

Key been brands We are how very with through have happy selling are product launches performing our today. very, very strongly.

So strong demand. and our are brands in

So of major year. I don't anticipate issues the the for balance

Steve Fasching

I Steve. this is think, Jon,

Just that. to add kind of on to

percentage from as up And rates to think about As out, and play year, a call the more what saw in against cadence we year of terms, came terms last discussed quarter was we percentage we comparisons it's our quarter. said of we year we of going the the QX on be right, the how ago, those strongest kind difficult that always drop. would in

careful wholesale thoughtful this growth. are that said, to right? year everybody, of 'XX distribution, And is a we being growing growing place. keep how how of and control wholesale, balance in Just very DTC, going to we're be FY we how in And remind about marketplace, we're so as we we're

of distribution So right that in distribution, we we DTC. of expanded but the keeping points are expanding about that in light as we're think mind

DTC. we and customers new them through to We also our that see wholesale, know bring we when in migrate do feed

our that again, about of strategy. growth. part is this it's And again, So

the too for we not the long-term sustain And to Everything so brands do growth trying is do we're future. much. to in

what you're So seeing play I think out. that's

few great out a I we was the very but little than that's really quarter, think next much year quarter how with in see kind what bit the line, of a we play better the quarters. expected,

David Powers

off, sort to in our finish opportunities can, obviously price our healthy for and continue think model numbers. our sell-through the and health not is marketplace high the for the our of profitable game for brands. I goal marketplace to to objective and growth we chasing is that, Yes. we're to but looking full And of We're where of brands, continue And margins. the just experiencing all control long very rates sustainable, And years pull that our in healthy come. take of we're

Jonathan Komp

That's very helpful.

we some I comment of maybe if Clifton of a recently? And for could. follow-up, one or could your new new at Should you all a version on if segmentation any some new launches color Just year. Bondi? And this be still feedback the of expecting fiscal approach on

Stefano Caroti

update good branding styles colors hit then variation point. Bondi Mach yes, allows fiscal a to has X give sorry, for Bondi QX, XX and created back Jon, launch. We've X point of greater breathing pushed a Clifton it's performing collection Yes, with X we and February to X Bondi And will room. that Bondi across been so well. -- -- 'XX distribution. differentiation Bondi super --

David Powers

add be And issue for the to into months. strong incredible that is And super kind still sellers. for of launched we reliant gateway that But I point key far, Skyflow performs we're we'll been runners and so next as to less of sellers over add well. can that super will those also then Those another would the brand, and that a very, franchise pleased two. that for will Clifton commercial Skyflow think so how us, very new with help the that we're the couple but of strong, weeks the group a Bondi more innovation out response recently price just in but the XX see opportunity that round important, last on very has

Jonathan Komp

your with of transition. luck Dave, best

David Powers

appreciate Thanks, it. Jon,

Operator

Vasilescu of line from comes next from question the Paribas. BNP Your Laurent

Laurent Vasilescu

is congrats some a and cash you just generation. you still cash I this forward. cards process Steve issuing be M&A $X.X Dave, of think dividend capital still I too. Clearly And I for allocation future Also, that's going at Can for in balance and priorities. point? the talk you've Dave, the you your again, for Stefano, billion. important, term. obviously, would position question thought buybacks about but are to consider the near a don't wanted endeavors. sure wanted there's all future your been envious done to about ask is the also

David Powers

of will years. Sure. It I'll cash cetera. and X then over dividends, speak to Steve We've we're built on it question. hand proud M&A balance, the Good it, a last it et is to the I very healthy over that. of piece

the come. reactivating and is M&A evaluating always growth have something same to that have is answer keep we UGG opportunities. as we exploring back looking. the think strategy can organic always We're then to on incredible changed we want HOKA much to brands years that with we as focus Teva. -- we here. coming hasn't our We're we And and for And and

We expansion have opportunities. category

We apparel HOKA opportunity over the have men's opportunities in in years. UGG,

think And would radar taking it integration potentially on the is marketplace, given right Ahnu. the our not launched We got ball. cause out and end challenges think sizable potential. We that that's long-term so now. just off the eye I on given in our valuations Anything the

the no on M&A from cash front So news really a perspective.

Steve?

Steve Fasching

to over investing think our that strong what's sheet Dave's is up as foremost continue exceptional gives Yes. helping with at To an is point, term. the time, opportunity. same to just a is I've at same of little grow how gives what's sheet. opportunity first operate we're it bit, said us the balance our to of a like we're strong with But levels in time, focus build time, long delivering us that look this business about and to strength to too, for us we and and some to balance think profitability add that position at a around. And growth the growth and a putting rates the And I continued really organic on I

future to then the as to some CapEx We in with we on and past with something with don't I QX, share definitely delivered then see think share that's you've Laurent, a but repurchase, any commitment our our consider, of are know, guide that Directors. your dividend, can Board we we there's discuss of question you committed. what something step-up in you on we seen repurchase. investment And And sure, to always it's that the side.

So on nothing it's this stage. table to at the but something discussed, and being announce that's

Laurent Vasilescu

question. follow-up a then And Two for Okay. follow-up parts question. the

It recently. that HOKA saw doing Apparel. think, like you you mentioned very looks it's Airolite I well. with Dave, I launched opportunities

some And year. to the in love the you've hardest XQ. the on got Just balance guidance your for get do the shape think commentary of how Last the quarter, topline Anyway, XQ the X X% quarters? about revenues implies don't by did know revenues. quarter, know us then, for comp the take I give I you but remaining about we guide Steve, the there. of you

David Powers

Yes.

HOKA on real okay. Just The doing new piece. launch, the quick it's

I and it's units selling small limited through think distribution. well

years that, of offer. tremendous and really I to -- over we I been do know compelling create the the but innovative priorities next We've and of b, Robin a have few consumers to have team know yet growth, footwear that, quite of the well, we and exciting that key one want course disrupt the amazing and we opportunity apparel such is a for think honestly. And a, to to point from because okay it's this apparel category. us; one

and and also investing support years So we're the Stefano to a in of But still. early -- come. over the be leadership it's consider able that Robin infrastructure to key to and we efforts those days team and priority

Steve Fasching

give you're don't the on then, Laurent, guidance, we guidance. quarterly right, Yes,

I think brands in health of the and the our the brands. of revenue seen QX as move demonstrated in-demand we've our we've nature shifts with business, seen in as

we talked giving on move about is of some bit QX are in kind We QX. direction demand that a earlier, little stronger. seeing which why saw We

to line out that start the As fall growth given year-over-year that in the full the year. XX%, and with into we a standpoint with from on we're the year guidance that we've future the quarters revenue guidance look or year at holding future

So be strongest quarters. it's one grower. our percentage expected to our smaller QX Again, of we

against As a up year ago. we comparisons to against be going we're harder you stated, know

slow that topline delivering XX%. will a growth around so of growth still but down, And

Operator

comes question Poser the line next Your from from of Sam Trading. Williams

Samuel Poser

because I a endeavors. of to I believe Dave, wish you all of guys going my sand that bit little there's I a have notes future really the sandbagging that's -- HOKA best the add I mentioned up you're here with at on in or miss bit. all you they're your things. One, little earnings numbers on that question didn't these why just I normal But there. X I Erinn, the calls. the numbers. feel

get that brand for So for would or direct dollars each the by for if dollars wholesale we the quarter, great. be can

be freight as to, which international like the will you're you're that for channel, because both domestic well? outpace geographic as impact And margins then, margin? would the Steve, -- the in mix as freight gross impact I the growth how expecting anticipating impact, think, And well impact the

Erinn Kohler

Sam, it's Erinn.

So I'll go ahead and kick off.

$X.X HOKA, So million; Koolaburra $X.X million; $XX.X leaves and For and Teva, for it predominantly Sanuk, other, million. UGG, million. by $XXX And you is $XXX wholesale global brand: that for our first was with at results quarter which million; distributor approximately

Steve Fasching

Okay. is Sam, Steve. this

point freight. we the the QX, basis that On was that freight, basis XXX-ish of XX increase in points saw of

down from QX. So recall in still the and throughout came benefited we -- freight higher a year, we year that had rates we that ago, still

So freight comparison benefit. was that QX the

to that move forward, remarks, as the freight will prepared that impact turns we in what and XX negative I full we a a bps. indicated be think the right? now is year And of As headwind,

a over XX positive going negative to to the now quarters. be XX X balance the next incurred So negative flips and is that

Samuel Poser

Okay.

Okay. far And then mix as channel? as and

Steve Fasching

So saying we're about from the points quarter, brand expansion XXX what margin mix. in and of basis roughly XXX, the

we So we basis some as to of selling. expansion. saw proportion product margin points that the improvement about brand And mix contributed as had well that price of the XXX then an full in

closeout pass to a little more in you're year. year and that's this the QX had full that on of which that sales we through the what of we seeing better, lift ago, selling better we've some recall, full bit the experienced a where and So QX, margin closeout is business. fewer year gross And probably performed the in price is

Samuel Poser

sort if to is things your be are, of going -- the you're activity, cushion from And assume. a from I expecting margins higher, normalize continue way forward things which a would they promotional

Steve Fasching

Yes.

So and forward, it promotional be things out. that's We said plays look, environment guidance. we'll more to we'll what play and in our going see how how But it yes, a see anticipate and out. we

Samuel Poser

continued Thank success. on much you very

Operator

the of Dana question Our Telsey Telsey from comes line from next Advisory Group.

Dana Telsey

Congratulations, and what place a accomplishment the Dave, wishing that to you best of luck and terrific at team on put next Deckers succeed. in you've your

you As about... think

David Powers

Thanks, Dana.

Dana Telsey

price there what stores? any in retail new new think of and forward? of on channels any China is you're terms expansion in and materials? then, and terms are how terms the both front thinking raw retail the distribution, what And the is, of about UGG, for the difference you in of you costs, you both what you are what seeing what saying, in freight As just of And those partners to that Dave, of HOKA were Steve, going are on seeing exposure you distribution pricing, seeing about

Steve Fasching

this Dana, Steve. freight. is Okay, the I'll with start

the see that earlier So benefited place what are what QX. the that's way when we freight, in we of I to was we were that in these was -- year. and able think through. see And in rate we sells QX freight on is it product What increases. before benefit to and And we in recall started to rates started it kind allocated inventory we gets expense to which that from inventory from

and inventory ago, we're a few freight So the anticipating increases that's when to see a that experience inbound. sell months That's the therefore, rate. through higher what on we started to was

during declined year, year. As the rates saw last you

seen increasing significant So anticipating we've rates now increases. we're and

today. increases We any are from there further haven't assumed necessarily the out that rates rate

gets are getting assumptions little see. be this indications could time, it a our of seeing tailwind. determined. gets rates of point be be If of better more in could stabilization freight rates at we're bit worse, year, a any headwind. and a we'll around to But that it So not the for better, freight If it

And on we're this season, at fall then we're costs stage, close kind input on. not a and seeing buying bought much terms too input not costs, in of keeping in well just of the that eye season spring through we're seeing, the change something

for but bit pretty point. a seen we're have at set this the much We increase, year little

David Powers

Yes. And is this Dave.

the our But I think opportunities, same doing that sure for the exceptional more side, managing the levels strategic with having On us are on price full job an HOKA are healthy distribution so are marketplace, appropriately. managing looking inventory growth, on we the side. accounts making and other time, teams the sell-through current at

that's but We out not rolling that be both massively, doing rolling we'll across new for have some think and important store openings We globally brands. own of will HOKA our we be out UGG doors.

Stefano which I'll specifics on But we're the with little speak bit HOKA let on working partners to a side. more

Stefano Caroti

Locker Sport Canada. Chek we'll both the this internationally JD, with yes, expansion sport both as be likes well in domestically Europe Asia, in And Dana, in in in partners, with and and seeing U.S., Yes, specific Intersport Foot as is and the key some HOKA. to top Europe, of China DSG,

Operator

from from the Janine comes Stichter Your question of next line BTIG.

Ethan Saghi

revenue My philosophically, Janine. where more You've bit give us SG&A for the into margin first on color And upside you think investing the got on a how higher you just is just Ethan on about spend could going? question, SG&A? and guide,

Steve Fasching

Yes.

see continue levels And I profitability with think of I'll right? global brands And to margin and us building we what affords still thinking awareness start. Steve. on on. invest the that coming brands, This to some an in exceptional was our our competition, opportunity, of delivering see is what's expansion, it we

invest think, again, our build of it same improve time some and and it. through how continuing that pass we the back awareness brands profitability, of lift at We as long-term great again, into sustainable so to guidance. brands globally awareness our our we brands global to some the can we And a of is strategy and build of around this the our

to what's we're at in there Additionally, have business. infrastructure also supports and to continued these our included of rates, as is in our continue growing we the that build teams invest growth

our with especially comparison revenue growth line step-up space. said seeing levels, you're we've terms and peers in that with what But in again, in percentage the in the delivering to in again, So continued respect. exceptional

and of So just margin. we're when good of a to take able to advantage expand place to be that the gross some

David Powers

support and there's speak, in they HOKA, of a the the in can guardrails as to the in and work opportunity within in products awareness a said from to marketing market. get more like just in internal And time margin, growth. flexible. of addition marketplace, innovations be to along, invest to sun, so in handful model. we're our We funnel for launched all continue continuing all we these our top to own to bigger, drive especially their need But we're to more the perspective given marketing going brands we globally. brand-new we've to Yes. But financial And

I that. to can going it's good So tell use, you

teams marketing very Our with we return globe. that on do We managing the team, that our are spend marketing and across the daily. monitor talented essentially a exceptional at spend almost

successful we us. the really promote also for launches, that's heading with confident brand in that So going right season continue time, we to And to into awareness big same invest UGG. to be we're marketing the feel a areas and if in the individual at

going as marketing And activations get to confident behind about feel well. We need really that spend way. exciting some that we we that have

Ethan Saghi

And then it. just a follow-up all Got really That's helpful. for me.

of new earlier wholesale growth For cadence to openings door about product new going of year? driving or that the And just partners much HOKA talking for be is you're just how space the expansion? door should shelf versus from taking rest of the with volume it, growth we about how think expansion the

Stefano Caroti

of both as combination It's gain new space shelf two, a the as doors. well

Operator

Your Fargo. from from the next Wells comes line of Boruchow Ike question

Irwin Boruchow

about been the the but wanted about HOKA kind of strong first number, accelerated in rate on a kicked to quick for guys being doing it's -- it's launch the XX%. DTC later. mentioned quarters years, many And X think out in growth I question it's it's just I I time Clifton it mean, you

more It's is of not with that especially the more what we could acceleration driving newer launches? region to a with some that is that? exactly more Bondi? it timing kind of Is that? you, there is it ships. with -- these it driving to Clifton Is benefiting the look certain So see, impressive of of Like

Stefano Caroti

across and been want Mach franchises have of Zirra, very successful. launches more build balanced Gaviota, We a X recent business to

the legs HOKA to So we to build store. more want

David Powers

loyal first resonate styles Yes. like our our core into They the last board then on wait efforts awareness And new in quarter, the think channels we're these general. that can't the building consumers. of marketing lot et the in and really And energy just from addition bringing Skyward, the and customers to the product. new brand across DTC in to the cetera, and a making I get on X bring launches those new Cielo

balanced we this across build franchises, categories think our is how going business of benefit I Stefano an So forward. can a as as said, example business that and

Steve Fasching

Yes. we distribution think other the build watching and as come And we expand awareness, is know I to directly. closely brand that we're customers us thing

brand, that for experience. watch is thing DTC come we're our into to to the growing way offering the find we So wholesale them consumers a even continue through as as broader distribution, is a

a experience here DTC, through were line, to we've fuller so And them. we able they plus engaged know

they but So continue doorstep. just many wholesale in cases, product some through cases, they'll dropped want in to the buy at their

quarters. really is this talked strategy growth wholesale so we what A about we've of how for DTC. of part And and through in customers with balance our and that combined DTC bringing

Operator

the Kernan Cowen. Our line John of TD comes from next from question

Krista Zuber

at Dave, accomplishments all best, questions Deckers. It's you and we for And the on us. Two congratulations your Krista John. for Zuber on wish

First on the inventory.

single your around and 'XX. management suspect to whole of domestic how a would you and the UGG, relatively positioning internationally I total, planned HOKA? a insight relation provide order the And digits. as you they're and then for revenue Kind of inventory the marketplace running it book maintaining comments shape of trends market. your characterize same both guide your some just in channels fiscal for low into follow-up, Sort can was across in likely up for than higher

David Powers

handle one, and I'll Yes. book I'll hand transit. speak can first it to he order to the Steve, over and the

but position. X%. specifically see generally how our don't information, feeling really about inventory, we're good yes, for approximately it you. And about But really, I'll give for that answers UGG, inventory the Steve we So

inventory and sandal of to a the probably and and us spring fall into Golden Golden wholesale about saw QX But we're care it we with in and to franchise in styles volume, I position top marketplace, think line helps take topline well like of best drivers we're the and go I good a that had ever, very Collection, Goldenstar DTC core some lot tighter success have the that's the styles the demand SKUs, the going our excited to clean of the with bottom the you of both that the do also of be and Globe. fewer that our It's serve momentum. but sell-through super assortment. funnel the a of a more we've inventory in sell-through Tasman to line, at of forward. continue also us And going engine think with able a

Steve?

Steve Fasching

Yes.

in of pandemic a aggressive in at think one too. inventory the the I line. -- out couple just years the we something on we've And to we when saw, pretty of of And work first ones looked add especially inventory is in been think across I think good get kind of were now. of I what I coming a position. that space, That's you to the were for really terms getting

the carrying, I really over-inventoried. a we're We're market. It position. not we into that think quickly good. It's from feel healthy good also get balance to allows inventory us the

and move And so new to disciplined that's really move is where you're able -- for to being us our management. to styles on on innovation inventory

say said, as we will kind that supplying. don't book, demand order order greater we comment we're I the is the what is on book what run, But of On with model than the Dave levels.

that so And model, it's And working. our is right?

buy our number than of probably you we're want talk allocating you a to hear more to them. they accounts, to so And I would what think if that likely would

we look position think to good quarters. we're as so perspective, a forward I And coming healthy from that the in

Operator

comes of from line the UBS. Jay question next Your from Sole

Jay Sole

a you're little say, Can see growth you of in, the just Asia, give a Terrific. rates that bit starting ramp what HOKA versus America more. to question. first If the HOKA DTC on contributor we growth, were in Europe? North really dig can the my to And in a sense us DTC if brand that's was

Steve Fasching

we well. is what by continuing in seeing the we're that. say the that North breakout We're of numbers we demonstrated Yes, strong growth, as see Yes, given necessarily America all good But haven't growth. to sure. will international as

the report. contributing global is lift of All that that to we did

That's ago, contributing kind of believe, And I the of that channel. seeing what within international building building think brand the are lot is of strong set is we strong internationally out wholesale business. is well HOKA track. a we what importance our the is this on It's couple of part of awareness we and the of also of So and to years a -- DTC. bit a expansion what

more numbers small So still but DTC, -- Asia, it's growing. but

we've And being there, And on so kind and see on. with that's the you'll build-out. a of continued something the aggressive like to market retail that focus there. more opportunity us China Eye

stores more So HOKA we -- stores than have country. in China do we any other

making. So I'd growth that say how of that of ours progress a well with it. focus the is But terms Pleased balanced the growing looked we're component. international in of at big we've

David Powers

would start think success the a to we're good in excited international front, couple DTC HOKA on network international the the it's level repeat add, to good healthy the the few with incremental distribution of have growth our in I to just with we and online in both And that off of and the new getting I really last in really seeing last I'm then business -- there. particularly we're the long years. customers of are we're way of and . And driving in growth store UGG but by go, HOKA over addition Yes. the pleased And a region customers. gains years,

total consumers. engaged the ASPs. margins our talked We're relationship business, So get data, us. best because priority we We we for down more road potentially better want all to with a as of more about, the a for gain about and with to XX% our our them, DTC have we've it's it's and topline

continue shape. we'll in so this we're But to model wholesale channel to -- the marketplace can in and good be. it as drive and really So in the and pull far invest globally, as high across this leverage

Jay Sole

can you're up an interesting are Cielo product out to HOKA to and -- if you're Skyflow across diversification just follow-up. Skyward way up in the now mentioned X, all and sounds diversification open open about the that. to UGG And the maybe factor HOKA very one the what's David, both I a bigger I UGG it. to unlock? and Got line. unlock to in That's stores in do And answer. it that a going it's What's the But the both you starting gating time world? the brands, roll stores deciding the line. given of just which And diverse assortments talking think

David Powers

question. Yes. very They're strategy. good different a It's

flagship employing approach. So in -- UGG, really we're more city of we're a

And so York, Avenue we New a Fifth ago. years few have in which opened

but in a China. a have lot on in that's a looking similarly more location We fleet and larger larger in exceptional formats. flagship for store see Knightsbridge We rolling We're of product new out showcasing in us and UGG, experience opening London. focused Asia these doors for cities don't and

the But along be just a a experiences to we're a looking this more is see We we doing across make the doors tightly of It's aggressive. going HOKA XXX and our sure bit different. that we'll roll days opened our marketplace biggest That's to ever. fleet. store there. lot see we And which bit little HOKA the opportunity. the not York, with and Fifth Avenue a extremely is And bit to manage more we're learning we little consumers. New strategic out in but retail, demand, have for early great little well. We're

communities that. our We brand for with And as connecting big opportunity where are international experience to the cities for well. in have then consumers our we local

is overall Asia But the across why where do just So early partners same. and growth the quality strategic, both down the it that's our to important brands investment, to so an out we be of leveraging kind can for assortment. road will healthy, that apparel and globe days, round in

Operator

your our you for concludes call. does Thank session that conference And question-and-answer participation. and conclude today's

. disconnect. now may You

Deckers Outdoor (DECK) 25 Jul 242025 Q1 Earnings call transcript