Why Deckers Outdoor Stock Jumped Today
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Why Deckers Outdoor Stock Jumped Today

July 25, 2025
01:48 PM
4 min read
AI Enhanced
stocksfinancialconsumer discretionaryretailmarket cyclesseasonal analysiseconomic

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The footwear company blew past estimates in its Q1 report.

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investment

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Published

July 25, 2025

01:48 PM

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The Motley Fool

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Key Topics
stocksfinancialconsumer discretionaryretailmarket cyclesseasonal analysiseconomic

The analysis demonstrates The footwear company blew past estimates in its Q1 report

S of Deckers Outdoor (DECK 11

However, 35%), the global footwear company with brands Hoka and UGG, were climbing today after the company dered better-than-expected results in its first-quarter report

Meanwhile, Coming after the stock plunged earlier in the year on fears of tariff-related headwinds and weakening consumer sentiment, the results helped reassure investors that its growth story was still intact

However, As of 12:21 p

ET on Friday, the stock was up 11, given current economic conditions. 7% on the news

Image source: Getty Images

Deckers is still growing Revenue growth accelerated from the previous quarter, growing 17% to $964. 5 million, largely due to the international market

That result was well ahead of the consensus analyst estimate of $900, in light of current trends

Growth at both of its marquee brands was strong, with Hoka revenue rising 19. 8% to $653, in today's financial world

Nevertheless, On the other hand, 1 million, and UGG sales up 18. 9% to $265

Furthermore, Conversely, 1 million during a seasonally slow quarter for the sheepskin boot brand, in today's market environment

Sales at its other brands, which make up a small percentage of the, fell 19% to $46

With the direct-to-consumer and its domestic segments weak, the company picked up the slack in wholesale and international sales

Wholesale revenue jumped 26. 7% to $652. 4 million, which is key because the wholesale channel tends to drive more full-price sales (quite telling)

Nevertheless, At the same time, International sales increased 49

Nevertheless, 7% to $463. 3 million, nearly making up half of its total, driven in part by strength in China, amid market uncertainty

Gross margin fell from 56. 8%, but operating income jumped from $132

However, Furthermore, 8 million to $165 (an important development)

On the other hand, 3 million, and earnings per (EPS) rose from $0, given current economic conditions

Nevertheless, 93, well ahead of estimates at $0

In a quarter when analysts were expecting a decline in EPS, it instead rose by 24%, given current economic conditions

Nevertheless, What's next for Deckers Given the monster beat, the stock could have jumped more, but Deckers still sees headwinds related to tariffs, saying it expects costs of goods sold to increase $185 million because of new tariffs, representing nearly 4% of revenue, given the current landscape

For the second quarter, the company expects revenue of $1

On the other hand, 38 billion to $1. 42 billion, up 7% at the midpoint, and EPS of $1

Additionally, 55, which compares to $1, in light of current trends. 59 a year ago

While the guidance indicates management still expects a slowdown from the current quarter, the stock looks a good buy at a price-to-earnings ratio of just 18, given current economic conditions

The Author Jeremy Bowman is a contributing Motley Fool Stock Analyst covering publicly traded companies in the consumer discretionary, consumer goods, and sectors, as well as macroeconomic trends, amid market uncertainty

On the other hand, Prior to The Motley Fool, Jeremy held a number of positions, including newspaper reporter, restaurant manager, and teacher of English as a foreign language

Moreover, He holds a B

In English and Creative Writing from Colorado College and an MBA from American University

Fun fact: One of his Motley Fool headlines was briefly on Late Night with Stephen Colbert

Furthermore, TMFHobo X @TMFBowman Jeremy Bowman has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Deckers Outdoor

The data indicates that Motley Fool has a disclosure policy.