Hoka and Ugg lead Deckers Brands to strong Q2 2025 performance

Deckers Brands, a global leader in footwear, apparel, and accessories, announced strong financial results for the second fiscal quarter ended September 30, 2025, with net sales rising 9.1 percent to 1.431 billion dollars.

The growth was fuelled by double-digit performance from its core brands, Hoka and Ugg, which saw net sales increase by 11.1 percent to 634.1 million dollars and 10.1 percent to 759.6 million dollars, respectively, while other brands net sales decreased 26.5 percent to 37.2 million dollars.

CEO Stefano Caroti noted that the brands' ability to connect with consumers through innovative products, combined with the company's strong operating model, provides confidence in achieving the full fiscal year outlook.

Geographically, the company saw significant momentum internationally, with sales jumping 29.3 percent to 591.3 million dollars, though domestic net sales slightly decreased by 1.7 percent. Profitability improved as operating income rose to 326.5 million dollars, up from 305.1 million dollars a year ago, and diluted earnings per share hit 1.82 dollars, compared to 1.59 dollars in the prior year period.

For the full fiscal year ending March 31, 2026, Deckers Brands projects net sales of approximately 5.35 billion dollars, with Hoka expected to increase by a low-teens percentage and Ugg by a low-to-mid-single-digit percentage. Diluted earnings per share is expected to be in the range of 6.30 dollars to 6.39 dollars.

The company remains financially strong, holding 1.414 billion dollars in cash with no outstanding borrowings, and actively returned capital to shareholders, repurchasing approximately 2.6 million shares for 282 million dollars during the quarter.