Ugg’s Billion-Dollar Quarter Helps Deckers Reach Record Q3 Results
Deckers’ star brands Hoka and Ugg delivered yet another quarter of record earnings.
The Goleta, Calif.-based footwear company reported net sales in the third quarter of fiscal 2025 increased 17.1 percent to $1.827 billion compared to $1.560 billion the same time last year. Net income in the period was $456.7 million, up from $389.9 million in the same year-ago quarter.
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Despite these results, however, shares for Deckers Brands were down nearly 17 percent in after-market trading on Thursday.
Looking at the company’s direct-to-consumer channel, Deckers reported a 17.9 percent increase in net sales to $1.011 billion, compared with $858.1 million in Q3 of fiscal 2024. Wholesale net sales for Q3 were up 16.2 percent to $815.8 million, compared with $702.2 million the same time last year.
By brand, Hoka saw the largest increase in sales in the third quarter, reporting a 23.7 percent rise to $530.9 million, up from $429.3 million in Q3 2024. Ugg also continued its winning streak in the period, posting net sales of $1.244 billion, a 16.1 percent increase from $1.072 billion last year.
As for Teva, the brand saw net sales decline 6.0 percent to $24.1 million, compared to $25.6 million the same time last year. And at the company’s Other Brands division, primarily composed of Koolaburra, the segment reported net sales decreased 16.6 percent to $28.0 million, compared with $33.6 million in Q3 2024.
“Deckers posted exceptional results in the third quarter, delivering record quarterly revenue, gross margin, and earnings,” Stefano Caroti, president and chief executive officer of Deckers Brands, said in a statement. “Ugg continued to experience incredible global momentum, with the brand’s iconic franchises capturing strong full price consumer demand across all regions. At the same time, Hoka delivered impressive results consistent with our strategy, remaining focused on scaling through innovative performance products.”
Looking ahead, Deckers raised its guidance for the year. The company now expects net sales for the full fiscal year 2025 to increase 15 percent to $4.9 billion. This is up from its previous guidance, which predicted sales for the year to rise 12 percent to $4.8 billion.
“Our increased full-year revenue outlook calls for 15 percent growth, which would be our fifth consecutive year growing mid-teens or higher, complemented by our commitment to maintain top-tier levels of operating margin,” Caroti added.
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