Deckers Q1 sales rise 17% as Hoka and Ugg outperform expectations

Deckers Brands has reported a 16.9% year-on-year increase in revenue to $964.5m (£718.4m) for the first quarter ended 30 June 2025, driven by strong demand for its Hoka and Ugg brands.

The California-based footwear and apparel company said performance in the quarter surpassed expectations, despite uncertainty in global trade. Hoka sales rose 19.8% to $653.1m (£486.3m), while Ugg posted an 18.9% increase to $265.1m (£198.0m). Sales from other brands fell 19% to $46.3m (£34.5m).

By channel, wholesale revenue rose 26.7% to $652.4m (£486.6m), while direct-to-consumer (DTC) revenue edged up 0.5% to $312.2m (£232.5m). Comparable DTC sales fell 2.2%.

International revenue increased 49.7% to $463.3m (£345.3m), offsetting a 2.8% fall in domestic sales to $501.3m (£373.4m).

Operating income also rose to $165.3m (£123.2m) from $132.8m (£99m) a year earlier. Diluted earnings per share climbed to $0.93 (£0.69) from $0.75 (£0.56). The company noted that all share-related figures reflect a six-for-one stock split completed in September 2024.

Gross margin declined slightly to 55.8% from 56.9%, while selling, general and administrative expenses increased to $372.6m (£277.0m) from $337.2m (£251.2m).

As of 30 June 2025, cash and cash equivalents totalled $1.72bn (£1.28bn), up from $1.44bn (£1.07bn) a year earlier. Inventory increased to $849.4 million (£632.8m). The company had no outstanding borrowings.

The company said it expects second-quarter revenue between $1.3bn and $1.42bn (£1.02bn–£1.06bn), with diluted earnings per share in the range of $1.50 to $1.55 (£1.12–£1.15). The forecast excludes any impact from further share repurchases.

Deckers said the outlook reflected current assumptions as of 24 July 2025 and was subject to risks including global trade policy changes, inflation, currency fluctuations, and supply chain disruptions.

Deckers noted it uses certain non-GAAP financial measures, including constant currency, to provide insight into its operating performance. These measures may differ from similarly titled metrics reported by other companies and are not a substitute for US GAAP measures.

President and chief executive Stefano Caroti said: “Hoka and Ugg outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026. Though uncertainty remains elevated in the global trade environment, our confidence in our brands has not changed, and the long-term opportunities ahead are significant.

“We will lean on the fundamental strengths of our powerful operating model as we continue executing our strategy.”