Q4 2024 Deckers Outdoor Corp Earnings Call Transcript
Key Points
- Deckers Outdoor Corp (DECK) reported an 18% revenue growth for fiscal year 2024, nearly reaching $4.3 billion.
- The company achieved a gross margin of 55.6%, a 530 basis point increase over the previous year.
- HOKA brand saw a 28% increase in global revenue, reaching $1.8 billion, driven by increased brand awareness and strong DTC growth.
- UGG brand reported a 16% increase in global revenue, reaching $2.2 billion, with significant gains in DTC acquisition and retention.
- Deckers Outdoor Corp (DECK) ended the fiscal year with $1.5 billion in cash and equivalents and no outstanding borrowings.
- The company anticipates a more normalized promotional environment for fiscal year 2025, which may impact gross margins.
- SG&A expenses increased by 24% year-over-year, driven by investments in talent, marketing, and infrastructure.
- The company faces uncertainties related to consumer confidence, inflationary pressures, geopolitical tensions, and supply chain disruptions.
- Deckers Outdoor Corp (DECK) expects a decrease in gross margins for fiscal year 2025, down to approximately 53.5% from 55.6% in fiscal year 2024.
- The company acknowledges that the exceptional margin expansion experienced in fiscal year 2024 may not repeat to the same degree in future periods.
Good afternoon, and thank you for standing by. Welcome to the Deckers Brand's Fourth Quarter Fiscal 2024 Earnings Conference Call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded.
I'll now turn the call over to Erinn Kohler, VP, Investor Relations and Corporate Planning.
Hello, and thank you, everyone, for joining us today. On the call is Dave Powers, President and Chief Executive Officer; Steve Fasching, Chief Financial Officer; and Stefano Caroti, Chief Commercial Officer.
Before we begin, I would like to remind everyone of the company's safe harbor policy. Please note that certain statements made on this call are forward-looking statements within the meaning of the federal securities laws, which are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.
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