Deckers(DECK) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended September 30, 2024, were $1,311,320, an increase of 20.1$1,091,907 for the same period in 2023[13] - Gross profit for the three months ended September 30, 2024, was $733,272, representing a gross margin of approximately 55.8$583,019 in the prior year[13] - Income from operations for the three months ended September 30, 2024, was $305,086, a 36$224,617 in the same period last year[13] - Net income for the three months ended September 30, 2024, was $242,321, compared to$178,547 for the same period in 2023, reflecting a year-over-year growth of 35.7%[13] - Net income for the six months ended September 30, 2024, was $357,946,000, compared to$242,099,000 for the same period in 2023, representing a 48% increase[19] - Diluted earnings per share rose by 51.9% to $2.34 per share[98] - Total comprehensive income increased by 57.5$364,921 compared to $231,683 in the prior period[138] Assets and Liabilities - Total current assets as of September 30, 2024, were$2,701,294, an increase from $2,443,483 as of March 31, 2024[11] - Total assets increased to$3,398,136 as of September 30, 2024, compared to $3,135,579 as of March 31, 2024[11] - Total current liabilities rose to$875,640 as of September 30, 2024, from $719,993 as of March 31, 2024[11] - Stockholders' equity increased to$2,223,239 as of September 30, 2024, compared to $2,107,468 as of March 31, 2024[11] - Cash and cash equivalents at the end of the period were$1,225,681,000, compared to $823,051,000 at the end of September 30, 2023, reflecting a 49$685,413,000 as of September 30, 2024, with 1,747,680 shares repurchased at a weighted average price of $146.65 during the six months ended September 30, 2024[76][77] Operational Highlights - The company has five reportable operating segments, including UGG, HOKA, Teva, Other brands, and DTC, as of September 30, 2024[34] - The company reported a total of 178 global retail stores as of September 30, 2024, including 139 UGG brand stores and 39 HOKA brand stores[111] - HOKA brand total sales reached$570,896, reflecting a 34.7% increase compared to $423,961 in the prior year[118] - Direct-to-Consumer (DTC) net sales for HOKA and UGG brands increased by 19.9$397,667 from $331,733[120] Expenses and Cash Flow - Operating activities generated net cash of$22,100,000 for the six months ended September 30, 2024, down from $121,528,000 in the same period of 2023[19] - The company recorded a depreciation, amortization, and accretion expense of$33,750,000 for the six months ended September 30, 2024, compared to $25,138,000 in 2023, marking a 34$90,833,000, compared to $47,150,000 in the same period of 2023, reflecting a 93$233,409, primarily due to higher inventory purchases and lower trade accounts payable[170] Market and Strategic Developments - The company expects to see a decrease in the impact of seasonality over time as it diversifies its product offerings and increases net sales of the HOKA brand, which has a more even sales distribution throughout the year[25] - The divestiture of the Sanuk brand was completed on August 15, 2024, but it did not represent a strategic shift that significantly affected the company's consolidated results[35] - The transition of CEO from Dave Powers to Stefano Caroti is effective August 1, 2024, following a planned succession process[99] Accounting and Compliance - The company adopted ASU 2022-04 regarding supplier finance programs, which did not have a material impact on its financial statements but resulted in additional disclosures[37] - The company is evaluating the impact of ASU 2023-07 on its disclosures related to reportable segment expenses, effective for fiscal years beginning after December 15, 2023[38] - The company believes its accounting estimates and assumptions are appropriate, but actual results could differ materially due to various macroeconomic factors[31]