Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 17% year-over-year to $1.83 billion, with gross margins improving to 60.3% [11][35][38] - Diluted earnings per share rose by 19% to $3, compared to $2.52 in the previous year [11][40] - Fiscal year-to-date performance shows significant revenue growth, with HOKA increasing by 29% and UGG growing by 15% [13][36] Business Line Data and Key Metrics Changes - UGG's global revenue in Q3 increased by 16% to $1.24 billion, with balanced growth across direct-to-consumer and wholesale channels [15][36] - HOKA's global revenue rose by 24% to $531 million, with DTC increasing by 27% and wholesale growing by 21% [26][36] - UGG experienced strong growth in both acquisition and retention of customers, with a 25% increase in UGG Reward members [16] Market Data and Key Metrics Changes - International markets for UGG rose by 28%, while the DTC and wholesale channels saw a balance increase of 19% [13] - HOKA's growth was particularly strong in the APAC region, with China contributing the largest incremental dollar revenue [26] Company Strategy and Development Direction - The company plans to phase out the Koolaburra brand to focus on more significant organic opportunities [24] - The strategy for HOKA includes building awareness and consideration while managing the marketplace for long-term growth [59][60] - The company aims to maintain a flexible operating model to support long-term brand health and profitability [34][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 15% revenue growth for fiscal 2025, marking the fifth consecutive year of mid-teens growth [14][42] - The company anticipates challenges in Q4 due to inventory limitations and a more promotional environment compared to the previous year [44][49] - Management remains committed to maintaining financial discipline and delivering top-tier profitability [52][50] Other Important Information - The company repurchased approximately $45 million worth of shares during the third quarter [41] - The updated guidance for diluted earnings per share is now in the range of $5.75 to $5.80 [48] Q&A Session Summary Question: Can you discuss the management of the HOKA brand and growth expectations? - Management emphasized the importance of building HOKA as a transformational brand with a focus on long-term sustainable growth, not just chasing numbers [59][63] Question: What is the reception of upcoming product launches like Clifton 10 and Arahi 8? - The reception has been positive, with both models booked well and meeting expectations [68][70] Question: How did the U.S. growth compare to expectations and what are the international growth prospects? - U.S. growth met expectations, and international growth is expected to outpace the U.S. in the future [86][90] Question: What are the opportunities to maintain or improve operating margins? - Management acknowledged that while maintaining high margins is challenging, the scarcity model and brand strength support margin levels [91][92] Question: Can you elaborate on the Clifton 10 launch and its impact on sales and margins? - The Clifton 10 will have a staggered launch, with some sales recognized in Q4 and some in Q1, and margin impacts from the closeout of Clifton 9 are anticipated [140][141]

Core Insights - Deckers (DECK) reported revenue of $1.83 billion for the quarter ended December 2024, marking a year-over-year increase of 17.1% and exceeding the Zacks Consensus Estimate of $1.71 billion by 6.70% [1] - The company's EPS for the same period was $3.00, up from $2.52 a year ago, surpassing the consensus EPS estimate of $2.60 by 15.38% [1] Financial Performance - International net sales reached $657.90 million, exceeding the average estimate of $543.46 million by two analysts, representing a year-over-year increase of 28.5% [4] - Domestic net sales totaled $1.17 billion, surpassing the average estimate of $1.11 billion, with a year-over-year change of 11.6% [4] - HOKA brand net sales amounted to $530.90 million, exceeding the average estimate of $516.30 million, reflecting a year-over-year increase of 23.7% [4] - UGG brand net sales were reported at $1.24 billion, above the average estimate of $1.13 billion, indicating a 16% year-over-year increase [4] - Other brands generated net sales of $28 million, slightly below the average estimate of $29.80 million, showing a year-over-year decline of 5.4% [4] - Teva brands reported net sales of $24.10 million, which was below the average estimate of $24.89 million, reflecting a year-over-year decrease of 5.9% [4] Market Performance - Deckers shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Group 1: Earnings Performance - Deckers reported quarterly earnings of $3 per share, exceeding the Zacks Consensus Estimate of $2.60 per share, and up from $2.52 per share a year ago, representing an earnings surprise of 15.38% [1] - The company posted revenues of $1.83 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.70%, compared to year-ago revenues of $1.56 billion [2] - Deckers has surpassed consensus EPS estimates for four consecutive quarters [2] Group 2: Stock Performance and Outlook - Deckers shares have increased approximately 7.8% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $1.05 billion, and for the current fiscal year, it is $5.62 on revenues of $4.9 billion [7] Group 3: Industry Context - The Retail - Apparel and Shoes industry, to which Deckers belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors can benefit from tracking these revisions [5][6]

Financial Performance - Revenue for the quarter increased by 15% compared to the same period last year [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new international markets, contributing to a 20% increase in global sales [4]. - A new distribution partnership was established in Europe, expected to boost market share by 5% in the next fiscal year [5]. Product Development - Launched three new products, which accounted for 25% of total sales this quarter [6]. - R&D expenditure increased by 10% to support ongoing innovation and product enhancements [7]. Operational Efficiency - Implemented new cost-saving measures that reduced production costs by 5% [8]. - Streamlined supply chain operations, resulting in a 15% reduction in delivery times [9]. Customer Engagement - Customer satisfaction scores improved by 10% due to enhanced service and support initiatives [10]. - Launched a new loyalty program, which has already attracted 50,000 new members [11]. Strategic Partnerships - Formed a strategic alliance with a leading tech company to co-develop next-generation products [12]. - Signed a long-term agreement with a major supplier to secure better pricing and ensure supply chain stability [13]. Regulatory Compliance - Successfully passed all regulatory audits with no major findings [14]. - Invested in new compliance training programs for employees to ensure adherence to industry standards [15]. Sustainability Initiatives - Reduced carbon emissions by 12% through the implementation of green manufacturing practices [16]. - Committed to achieving net-zero emissions by 2030, with a detailed roadmap in place [17]. Employee Development - Increased employee training hours by 20% to enhance skills and productivity [18]. - Introduced a new performance-based incentive program to motivate and retain top talent [19]. Technology Investments - Allocated $50 million to upgrade IT infrastructure, improving system reliability and security [20]. - Adopted advanced data analytics tools to enhance decision-making and operational insights [21]. Risk Management - Established a new risk management framework to better identify and mitigate potential threats [22]. - Conducted regular stress tests to ensure financial resilience in volatile market conditions [23]. Shareholder Value - Increased dividend payouts by 10%, reflecting strong financial performance and confidence in future growth [24]. - Repurchased 2 million shares as part of the ongoing share buyback program [25].

Core Viewpoint - Deckers Outdoor Corporation is set to announce its third-quarter fiscal 2025 earnings results, with investors focused on the company's performance amid market challenges and opportunities [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for Deckers' revenues is $1.70 billion, reflecting a 9.1% increase from the previous year [2]. - The earnings per share (EPS) estimate has risen to $2.56, indicating a 1.6% growth year-over-year [3]. Key Growth Drivers - Deckers is focusing on innovation and expanding brand reach, particularly through product development for its HOKA and UGG brands [5]. - Sales for UGG are expected to grow by 1%, while HOKA is projected to see a significant increase of 19.7% year-over-year [6]. - The company is enhancing its direct-to-consumer channels, anticipating a 7% increase in direct-to-consumer revenues [7]. - International market expansion is a crucial part of Deckers' growth strategy, helping to increase market share and brand recognition [8]. Margin Pressures - Anticipated margin compression is expected due to rising costs, particularly in freight and a shift towards a normalized promotional environment, with gross margin expected to shrink by 320 basis points [9]. - SG&A expenses are projected to increase as a percentage of net sales, leading to an operating margin contraction of 480 basis points [9]. Earnings Prediction - The model predicts an earnings beat for Deckers, supported by a positive Earnings ESP of +6.84% and a Zacks Rank of 1 (Strong Buy) [10][11].

Company Overview - Deckers Outdoor (DECK) is a leading designer, producer, and brand manager of innovative footwear and accessories for outdoor sports and lifestyle activities [1] - The stock has a Zacks Rank 1 (Strong Buy), with increasing EPS expectations over recent months [1][2] Industry Position - Deckers Outdoor is part of the Zacks Retail – Apparel & Shoes industry, which ranks in the top 27% of all Zacks industries [2] Financial Performance - The company has exceeded the Zacks Consensus EPS estimate by an average of 40% across its last four quarterly releases [3] - In the latest financial report, EPS increased by 40% year-over-year, and sales grew by 20% [3] - Following the latest release, Deckers Outdoor raised its FY25 sales outlook [3] Brand Performance - The HOKA and UGG brands are experiencing strong consumer demand, regularly exceeding consensus expectations [4][6] - The company has seen margin expansion throughout the period, continuing a trend from recent periods [9]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Deckers (DECK) - Deckers currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3][4]. - The stock has shown significant price appreciation, with a 26.78% increase over the past quarter and a 71.79% increase over the last year, compared to the S&P 500's 4.32% and 27.01% respectively [7]. Price Performance - Over the past week, Deckers shares increased by 1.16%, while the Zacks Retail - Apparel and Shoes industry remained flat. The monthly price change for Deckers is 3.32%, outperforming the industry's 1.03% [6]. - The average 20-day trading volume for Deckers is 1,287,021 shares, which is a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, three earnings estimates for Deckers have been revised upwards, raising the consensus estimate from $5.48 to $5.56. For the next fiscal year, three estimates have also moved higher without any downward revisions [10]. Conclusion - Considering the positive momentum indicators and earnings outlook, Deckers is positioned as a strong buy candidate for investors seeking short-term gains [12].

Core Viewpoint - Deckers Outdoor Corporation (DECK) has significantly outperformed the retail-apparel and shoes industry, driven by enhanced operational efficiency and growth initiatives, with a stock price increase of 41.4% over the past three months compared to the industry's 22.2% growth [1]. Performance Metrics - DECK's stock closed at $214.92, above its 50-day and 200-day moving averages of $198.50 and $165.63, indicating a positive market sentiment and investor confidence [4]. - The stock is currently 1.6% below its 52-week high of $218.39, reached on January 21, 2025 [6]. Brand Performance - The company's flagship brands, UGG and HOKA, are key drivers of growth, with HOKA expected to become a multi-billion-dollar brand and UGG maintaining its status as a global lifestyle leader [8]. - In Q2 of fiscal 2025, HOKA sales increased by 34.7% year-over-year, while UGG sales grew by 13% [9]. Direct-to-Consumer (DTC) Growth - DECK's DTC business saw a 19.9% year-over-year increase in net sales, reaching $397.7 million, with comparable sales rising by 17% [10]. - The company anticipates a 12.6% growth in DTC revenues for fiscal 2025 [10]. Wholesale Channel Performance - Wholesale revenues increased by 20.2% year-over-year in Q2, totaling $913.7 million, driven by strong performances from HOKA and UGG [11]. - HOKA and UGG's wholesale revenues rose by 33% and 14%, respectively, aided by early inventory shipments [12]. International Expansion - International sales grew by 33% year-over-year in Q2, supported by strong demand for UGG and HOKA [13]. - The company expects a 15.5% increase in revenues from international regions in fiscal 2025 [14]. Financial Outlook - DECK projects fiscal 2025 revenues of $4.8 billion, reflecting a 12% increase from the previous year [15]. - The company has revised its gross margin guidance to 55-55.5% and raised its earnings per share (EPS) guidance to $5.15-$5.25 [16]. Analyst Sentiment - Analysts have positively revised their EPS estimates for DECK, with the current consensus estimate for the fiscal year raised to $5.56 per share [18]. - The Zacks Consensus Estimate for sales in the current and next fiscal years is projected at $4.89 billion and $5.40 billion, indicating year-over-year growth of 14.1% and 10.4%, respectively [18]. Investment Appeal - DECK's strong market position, driven by innovation, robust DTC growth, and expanding global reach, makes it an attractive option for long-term investment [21].

Company Overview - Deckers (DECK) is expected to report a year-over-year decline in earnings of -0.8% with an EPS of $2.50 for the quarter ended December 2024, while revenues are projected to increase by 9.1% to $1.7 billion [3][12]. Earnings Expectations - The earnings report is scheduled for January 30, 2025, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2][12]. - The consensus EPS estimate has been revised 2.35% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Deckers is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +9.60%, suggesting a strong likelihood of beating the consensus EPS estimate [10][11]. - Deckers has a Zacks Rank of 1 (Strong Buy), which, when combined with a positive Earnings ESP, historically leads to a positive surprise nearly 70% of the time [8][11]. Historical Performance - In the last reported quarter, Deckers exceeded the expected EPS of $1.22 by delivering $1.59, resulting in a surprise of +30.33% [12]. - The company has consistently beaten consensus EPS estimates in the last four quarters [13]. Industry Context - Boot Barn (BOOT), a competitor in the Zacks Retail - Apparel and Shoes industry, is expected to post earnings of $2.32 per share, reflecting a year-over-year increase of +28.2%, with revenues projected at $608.22 million, up 16.9% [17]. - Boot Barn's consensus EPS estimate has remained unchanged, but a higher Most Accurate Estimate has led to an Earnings ESP of 2.05%, indicating a likely earnings beat [18].

Company Performance - Deckers' stock closed at $214.92, reflecting a +0.38% change from the previous trading day, which lagged behind the S&P 500's gain of 0.61% [1] - Over the past month, Deckers' shares appreciated by 2.93%, outperforming the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08% [1] - The upcoming earnings report is scheduled for January 30, 2025, with an expected EPS of $2.50, indicating a 0.79% decline year-over-year, while revenue is projected to be $1.7 billion, showing a 9.13% increase [1] Earnings Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $5.56 per share and revenue of $4.89 billion, representing increases of +14.4% and +14.08% respectively from the previous year [2] - Recent modifications to analyst estimates for Deckers are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [2] Stock Performance and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [4] - Deckers currently holds a Zacks Rank of 1 (Strong Buy), with a recent 1.31% increase in the Zacks Consensus EPS estimate over the last 30 days [4] - Deckers is trading at a Forward P/E ratio of 38.5, which is a premium compared to the industry average of 16.72, and has a PEG ratio of 2.96, compared to the industry average of 1.48 [5] Industry Overview - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]