Deckers Brands Soars to Record Heights: Q4 Earnings Exceed Expectations
Deckers Brands, the parent company of iconic brands HOKA and UGG, has once again delivered exceptional results in its fourth quarter fiscal 2025 earnings. The company's record performance has seen revenue grow by 16% year-over-year to just shy of $5 billion, with gross margin expanding 230 basis points above last year to 57.9%. Operating margins have also improved significantly, up 200 basis points over last year to 23.6%, while earnings per share have increased 30% versus last year to $6.33.
CEO Stefano Caroti took the opportunity on the company's conference call to congratulate his team on another exceptional year, citing their dedication and focus on the long term as key drivers of success. This has led to incredible progress over the past five years, with total company revenue growing at a compounded annual rate of 19%. Notably, HOKA and UGG have both added significant revenue, with HOKA contributing approximately $1.9 billion and UGG adding $1 billion.
Caroti also highlighted the expansion of gross margin by 600 basis points and operating margins increasing by 750 basis points over the same period. These impressive results demonstrate the strong foundation built by the company, providing a powerful framework for continued growth and success. The CEO emphasized that the team's focus on long-term strategies has driven these exceptional outcomes.
Despite the uncertainty introduced by shifting U.S. trade policy in recent months, Deckers Brands appears well-positioned to navigate these challenges and continue its upward trajectory. The company's commitment to delivering outstanding results has been evident throughout the year, with its team of talented individuals working tirelessly to drive progress and innovation.
The company's record revenue growth and expansion of gross margin and operating margins are testaments to its successful strategies and dedication to excellence. As Deckers Brands looks to the future, investors and stakeholders can be confident in its ability to continue delivering exceptional results and driving long-term value creation.
