Footwear and apparel conglomerate Deckers (NYSE:DECK) exceeded Wall Street’s revenue expectations for the third quarter of the calendar year 2025, reporting a 9.1% increase in sales compared to the same period last year. The company’s revenue reached $1.43 billion, slightly surpassing analysts’ projections of $1.42 billion. Despite this positive revenue growth, Deckers issued a full-year revenue guidance of $5.35 billion at the midpoint, which fell 2% short of analyst estimates.
In terms of profitability, Deckers posted a GAAP earnings per share (EPS) of $1.82, which marked a significant 15.2% increase above analysts’ consensus estimate of $1.58. The company also maintained an operating margin of 22.8%, consistent with the same quarter last year. The EPS guidance for the entire year stands at $6.35, aligning well with market expectations.
Stefano Caroti, President and Chief Executive Officer of Deckers, highlighted the strong performance of key brands, stating, “HOKA and UGG again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands.”
Established in 1973, Deckers has built a reputation as a prominent footwear and apparel conglomerate, showcasing a diverse portfolio of lifestyle and performance brands. Over the past five years, the company has demonstrated impressive sales growth, achieving an 18.8% compounded annual growth rate, which outpaces the average in the consumer discretionary sector. While the annualized revenue growth of 15.9% over the past two years is below its five-year trend, the company maintains a respectable performance in a competitive market.
Analyzing the sales dynamics further, Deckers’ constant currency revenue growth averaged 16% year-on-year over the last two years, illustrating the company’s effective management of foreign currency exposure. In the most recent quarter, its constant currency sales remained strong, underlining the brand’s resilience and appeal to consumers.
Overall, Deckers’ consistent growth trajectory, bolstered by the success of its flagship brands, suggests a favorable outlook amid a dynamic market. Investors may find encouragement in the company’s solid performance and strategic positioning as it navigates both opportunities and challenges in the coming quarters.