Deckers Brands (DECK) FY2025 10-K Annual Report

Filed: May 23, 2025
Materials
Rubber & Plastics FootwearSEC EDGAR

Deckers Brands (DECK) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on May 23, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Deckers Brands FY2025 10-K Analysis

Business Overview

  • Core business: global design, marketing, distribution of footwear, apparel, accessories under five brands: UGG, HOKA, Teva, AHNU, Koolaburra
  • New development: phased out Koolaburra standalone operations with planned wholesale channel exit by end of 2025; completed sale of Sanuk brand August 2024
  • Strategic shift: reorganized reportable segments to brand-centric (UGG, HOKA, Other brands) from distribution channel focus in Q4 FY2025
  • Notable metric: employee headcount increased 14.6% YoY to approximately 5,500 as of March 31, 2025
  • Unique fact: recognized by Barron’s, TIME, Forbes, Newsweek for sustainability; published aligned ESG report following TCFD, GRI, SASB standards

Management Discussion & Analysis

  • Revenue $4.99B, up 16.3% YoY (+$698M) driven by HOKA +23.6% ($2.23B), UGG +13.1% ($2.53B), Other brands down 8.6% ($221M)
  • Operating margin 23.6% vs 21.6%, gross margin 57.9% vs 55.6%; income from operations $1.18B, up 27.1% YoY (+$252M)
  • Best segment: UGG operating income $1.00B, up 24.6%; worst segment: Other brands $34.6M, though up 45.8%, sales declined
  • SG&A $1.71B (+17.1%), driven by marketing, payroll, infrastructure; no direct capex or cash flow details disclosed; share repurchases reduced avg. shares boosting EPS
  • Management sees risks from tariffs, inflation, geopolitical tensions; focus on growing DTC and international sales, marketing investments, and supply chain infrastructure

Risk Factors

  • Reliance on sheepskin from Australian suppliers and Chinese tanneries exposes to supply disruption, geopolitical risks, and price volatility affecting gross margin
  • Top ten customers account for 23.7% of net sales; one customer is 13.6% of trade accounts receivable, posing concentration and credit risk
  • Transition of international 3PL warehouse management system in October 2025 risks operational disruption and shipment delays
  • Intense competition from larger competitors with superior resources using AI, data analytics, and offshore manufacturing drives pricing pressure
  • Economic downturn or inflation may reduce discretionary spending on premium UGG and HOKA products, impacting sales and profitability

Deckers Brands FY2025 Key Financial Metrics
XBRL

Revenue

$5.0B

+16.3% YoY

Net Income

$966M

+27.2% YoY

Gross Margin

57.9%

+225bp YoY

Operating Margin

23.6%

+202bp YoY

Net Margin

19.4%

+166bp YoY

ROE

38.4%

+240bp YoY

Total Assets

$3.6B

+13.9% YoY

EPS (Diluted)

$6.33

-78.3% YoY

Operating Cash Flow

$1.0B

+1.1% YoY

Source: XBRL data from Deckers Brands FY2025 10-K filing on SEC EDGAR. All figures in USD.

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