Deckers Outdoor Corporation (DECK) Bundle
A Brief History of Deckers Outdoor Corporation
Deckers Outdoor Corporation, known for its lifestyle brands including UGG, HOKA, Teva, and Sanuk, has seen significant growth and evolution since its inception. As of 2024, the company continues to thrive in the competitive footwear and apparel market.
Company Overview
Founded in 1973, Deckers was initially focused on the distribution of footwear. It became publicly traded in 1993 and has since expanded its brand portfolio significantly. The company’s headquarters is located in Goleta, California.
Financial Performance
For the six months ending September 30, 2024, Deckers reported a total net sales increase of 20.9% compared to the same period in 2023, amounting to $2.14 billion. The breakdown of net sales is as follows:
| Brand | Wholesale ($ millions) | Direct-to-Consumer ($ millions) | Total ($ millions) |
|---|---|---|---|
| UGG | 654.95 | 257.86 | 912.82 |
| HOKA | 695.08 | 420.99 | 1,116.07 |
| Teva | 43.49 | 24.81 | 68.30 |
| Sanuk | 6.33 | 3.35 | 9.68 |
| Other Brands | 28.59 | 1.21 | 29.80 |
The company achieved a gross profit margin of 56.3%, up from 52.6% in the previous year. This improvement was attributed to a favorable brand mix and higher-margin products driving growth, particularly in the HOKA and UGG brands.
Net Income and Earnings Per Share
Deckers reported a net income of $357.95 million for the six months ended September 30, 2024, representing a 47.9% increase from $242.10 million in the prior year. Earnings per share (EPS) increased significantly, with basic EPS rising to $2.35 from $1.55 a year earlier.
Cash Flow and Liquidity
As of September 30, 2024, Deckers had cash and cash equivalents totaling $1.23 billion. This reflects a decrease from $1.50 billion at the end of the previous fiscal year. The company's net cash provided by operating activities was $22.10 million, a decrease of 81.8% compared to the previous year due to unfavorable changes in working capital.
| Financial Metrics | 2024 (6 months) | 2023 (6 months) |
|---|---|---|
| Net Sales ($ millions) | 2,136.67 | 1,767.70 |
| Gross Profit ($ millions) | 1,203.27 | 929.44 |
| Net Income ($ millions) | 357.95 | 242.10 |
| Cash and Cash Equivalents ($ millions) | 1,225.68 | 1,502.05 |
Market Presence and Challenges
Deckers has expanded its international presence, with international net sales reaching $766.90 million, a 27.8% increase from the previous year. However, the company faces challenges including supply chain disruptions and fluctuating consumer demand.
Stock Performance
As of September 30, 2024, Deckers' stock price has shown resilience, reflecting the company’s strong financial performance and market position. The stock repurchase program has also contributed to enhancing shareholder value, with an aggregate remaining approved amount of $685.41 million for share repurchases.
Deckers continues to focus on innovation and expanding its brand portfolio to maintain its competitive edge in the footwear and apparel industry.
A Who Owns Deckers Outdoor Corporation (DECK)
Major Shareholders
As of 2024, Deckers Outdoor Corporation's ownership structure includes institutional investors, retail investors, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Vanguard Group Inc. | 10.2% | Institutional |
| BlackRock Inc. | 9.8% | Institutional |
| State Street Corporation | 5.5% | Institutional |
| FMR LLC (Fidelity) | 4.9% | Institutional |
| Invesco Ltd. | 3.2% | Institutional |
| Directors and Officers | 1.5% | Insider |
| Other Individual Investors | 64.9% | Retail |
Insider Ownership
Insider ownership represents a smaller portion of Deckers Outdoor Corporation's total shares. As of the latest filings, the combined ownership of company executives and board members is approximately 1.5%. This includes shares held by the CEO and other top executives.
Stock Performance and Market Trends
Deckers Outdoor Corporation's stock (DECK) has shown a significant performance in the market. As of September 30, 2024, the stock price was approximately $158.54. Over the past year, the stock has experienced a volatility of around 20% with a 52-week high of $180 and a low of $130.
Recent Financial Performance
In terms of financial performance, Deckers reported net sales of $2.14 billion for the six months ended September 30, 2024, reflecting a 20.9% increase compared to the previous year. The net income for the same period was approximately $358 million, representing a 47.9% increase year-on-year.
| Financial Metrics | 2024 (6 Months Ended September 30) | 2023 (6 Months Ended September 30) |
|---|---|---|
| Net Sales | $2,136,667,000 | $1,767,698,000 |
| Net Income | $357,946,000 | $242,099,000 |
| Gross Margin | 56.3% | 52.6% |
Conclusion on Ownership Structure
In summary, Deckers Outdoor Corporation's ownership is characterized by a mix of institutional and retail investors, with significant holdings by major investment firms. The company continues to show strong financial performance, contributing to its attractive profile in the market.
Deckers Outdoor Corporation (DECK) Mission Statement
As of 2024, Deckers Outdoor Corporation focuses on innovation, sustainability, and customer satisfaction across its various brands, including UGG and HOKA. The company aims to deliver high-quality, performance-driven products that enhance the outdoor lifestyle experience.
Core Values and Objectives
- Commitment to sustainability and environmental responsibility.
- Innovation in product design and technology.
- Focus on customer engagement and satisfaction.
- Global market expansion and brand recognition.
Financial Performance Overview
Deckers Outdoor Corporation's financial performance reflects its commitment to these values. For the six months ended September 30, 2024, the financial highlights are as follows:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $2,136,667 | $1,767,698 | $368,969 (20.9%) |
| Cost of Sales | $933,395 | $838,255 | $95,140 (11.3%) |
| Gross Profit | $1,203,272 | $929,443 | $273,829 (29.5%) |
| Selling, General, and Administrative Expenses | $765,379 | $634,090 | $131,289 (20.7%) |
| Net Income | $357,946 | $242,099 | $115,847 (47.9%) |
| Comprehensive Income | $364,921 | $231,683 | $133,238 (57.5%) |
Market Segmentation and Brand Performance
Deckers operates through various segments, with notable performance across its brands. The distribution of net sales by brand and channel for the six months ended September 30, 2024, is summarized below:
| Brand | Wholesale | Direct-to-Consumer | Total |
|---|---|---|---|
| UGG | $654,954 | $257,862 | $912,816 |
| HOKA | $695,076 | $420,998 | $1,116,074 |
| Teva | $43,491 | $24,811 | $68,302 |
| Sanuk | $6,328 | $3,351 | $9,679 |
| Other Brands | $28,586 | $1,210 | $29,796 |
International Expansion and Net Sales Growth
International sales for the company have shown significant growth, with a detailed breakdown as follows:
| Region | Net Sales 2024 | Net Sales 2023 | Change |
|---|---|---|---|
| Domestic | $1,369,766 | $1,167,568 | $202,198 (17.3%) |
| International | $766,901 | $600,130 | $166,771 (27.8%) |
International net sales represented 35.9% and 33.9% of total net sales for the six months ended September 30, 2024, and 2023, respectively.
Commitment to Sustainability
Deckers is dedicated to sustainable practices, which is reflected in its supply chain management and product development strategies. The company aims to reduce its carbon footprint and enhance the use of eco-friendly materials in its products.
Conclusion on Mission Statement Alignment
In summary, Deckers Outdoor Corporation's mission statement aligns with its operational and financial strategies, focusing on innovation, sustainability, and customer satisfaction, leading to strong financial performance and market growth in 2024.
How Deckers Outdoor Corporation (DECK) Works
Business Overview
Deckers Outdoor Corporation (DECK) is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories. It operates five proprietary brands: UGG, HOKA, Teva, Koolaburra, and AHNU. The company sells its products through various channels, including wholesale distributors and direct-to-consumer (DTC) sales, which encompass e-commerce and retail stores.
Financial Performance
For the six months ended September 30, 2024, Deckers reported the following financial results:
| Financial Metric | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Change |
|---|---|---|---|
| Net Sales | $2,136,667 | $1,767,698 | +20.9% |
| Cost of Sales | $933,395 | $838,255 | +11.3% |
| Gross Profit | $1,203,272 | $929,443 | +29.5% |
| Selling, General, and Administrative Expenses | $765,379 | $634,090 | +20.7% |
| Income from Operations | $437,893 | $295,353 | +48.3% |
| Net Income | $357,946 | $242,099 | +47.9% |
| Diluted Earnings per Share | $2.34 | $1.54 | +51.9% |
Sales by Brand and Channel
Net sales by brand and channel for the same period were as follows:
| Brand/Channel | Net Sales 2024 (in thousands) | Net Sales 2023 (in thousands) | Change |
|---|---|---|---|
| UGG Brand | $912,816 | $806,010 | +13.3% |
| HOKA Brand | $1,116,074 | $844,445 | +32.2% |
| Teva Brand | $68,302 | $69,903 | -2.3% |
| Sanuk Brand | $9,679 | $14,960 | -35.3% |
| Other Brands | $29,796 | $32,380 | -8.0% |
Operational Segments
Deckers operates through various segments, primarily focusing on wholesale and direct-to-consumer sales. The performance of each brand in terms of income from operations during the six months ended September 30, 2024, is summarized below:
| Brand | Income from Operations 2024 (in thousands) | Income from Operations 2023 (in thousands) | Change |
|---|---|---|---|
| UGG Brand | $233,924 | $182,768 | +28.0% |
| HOKA Brand | $240,635 | $168,397 | +42.9% |
| Teva Brand | $5,573 | $8,590 | -35.1% |
| Sanuk Brand | ($1,655) | $456 | -462.9% |
| Other Brands | $466 | $4,418 | -89.5% | Total | $437,893 | $295,353 | +48.3% |
Balance Sheet Highlights
As of September 30, 2024, Deckers' balance sheet reflects strong liquidity and capital structure:
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $1,225,681 |
| Trade Accounts Receivable | $537,137 |
| Inventories | $777,891 |
| Total Assets | $3,398,136 |
| Total Liabilities | $1,174,897 |
| Total Stockholders' Equity | $2,223,239 |
Liquidity and Cash Flow
Liquidity sources include cash and cash equivalents, cash from ongoing operations, and available borrowing capacity. For the six months ended September 30, 2024, cash flows were as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $22,100 |
| Net Cash Used in Investing Activities | ($34,442) |
| Net Cash Used in Financing Activities | ($267,014) |
Recent Developments
In August 2024, Deckers underwent a CEO transition, appointing Stefano Caroti as the new CEO. Additionally, the company completed the sale of the Sanuk brand on August 15, 2024.
How Deckers Outdoor Corporation (DECK) Makes Money
Revenue Streams
Deckers Outdoor Corporation generates revenue through several key channels, primarily through wholesale and direct-to-consumer (DTC) sales across its brand portfolio, which includes UGG, HOKA, Teva, and others.
Net Sales Overview
For the six months ended September 30, 2024, Deckers reported total net sales of $2,136,667 thousand, marking an increase of 20.9% compared to the previous year. This growth was driven by both domestic and international sales.
| Sales Channel | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Wholesale | $1,428,435 | $1,185,595 | $242,840 | 20.5% |
| Direct-to-Consumer | $708,232 | $582,103 | $126,129 | 21.7% |
| Total | $2,136,667 | $1,767,698 | $368,969 | 20.9% |
Brand Performance
Within the brand segments, the UGG and HOKA brands showed significant growth in net sales. For the six months ended September 30, 2024, the UGG brand generated $912,816 thousand in total sales, while the HOKA brand reached $1,116,074 thousand.
| Brand | Wholesale Sales (2024) | Direct-to-Consumer Sales (2024) | Total Sales (2024) | Total Sales (2023) | Change ($) |
|---|---|---|---|---|---|
| UGG | $654,954 | $257,862 | $912,816 | $806,010 | $106,806 |
| HOKA | $695,076 | $420,998 | $1,116,074 | $844,445 | $271,629 |
| Teva | $43,491 | $24,811 | $68,302 | $69,903 | ($1,601) |
| Sanuk | $6,328 | $3,351 | $9,679 | $14,960 | ($5,281) |
Gross Profit and Margins
Deckers' gross profit for the six months ended September 30, 2024, was $1,203,272 thousand, with a gross margin of 56.3%, an increase from 52.6% in the previous year.
Operating Income
Income from operations for the same period reached $437,893 thousand, increasing by 48.3% compared to $295,353 thousand in 2023.
Expenses Overview
Selling, general, and administrative expenses totaled $765,379 thousand for the six months ended September 30, 2024. This represented approximately 35.8% of net sales, remaining consistent with the previous year’s 35.9%.
Net Income
Net income for the six months was reported at $357,946 thousand, reflecting a significant increase of 47.9% compared to $242,099 thousand in the prior year.
| Financial Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $2,136,667 | $1,767,698 | $368,969 | 20.9% |
| Gross Profit | $1,203,272 | $929,443 | $273,829 | 29.5% |
| Income from Operations | $437,893 | $295,353 | $142,540 | 48.3% |
| Net Income | $357,946 | $242,099 | $115,847 | 47.9% |
Market Trends and Strategic Initiatives
Deckers has experienced increased demand for its products, particularly in international markets, where net sales grew by 27.8% for the six months ended September 30, 2024, amounting to $766,901 thousand.
As of September 30, 2024, the company’s international sales represented 35.9% of total net sales, up from 33.9% in the previous year.
The company continues to invest in marketing and strategic partnerships to enhance brand awareness and capture market share, particularly for its HOKA and UGG brands, which are experiencing robust growth.
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Article updated on 8 Nov 2024
Resources:
- Deckers Outdoor Corporation (DECK) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Deckers Outdoor Corporation (DECK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Deckers Outdoor Corporation (DECK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.