FY 2024 REVENUE INCREASED 18% TO A RECORD $4.29 BILLION FY 2024 DILUTED EPS INCREASED 51% TO A RECORD $29.16 GUIDES FY 2025 REVENUE GROWTH OF APPROX. 10%; EPS RANGE OF $29.50-$30.00 GOLETA, Calif., May 23, 2024 /PRNewswire/ -- Deckers Brands (NYSE:DECK), a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, today announced financial results for the fourth fiscal quarter and full fiscal year ended March 31, 2024. The Company also provided its financial outlook for the full fiscal year ending March 31, 2025. "Deckers achieved record results during fiscal year 2024, as we delivered revenue growth of 18% and increased earnings per share by 51%, reflecting a continued dedication to maintain exceptional levels of profitability as our brands scale," said Dave Powers, President and Chief Executive Officer. "HOKA and UGG remain two of the most admired and well-positioned brands in the marketplace, each with a robust innovation product pipeline designed to win with global consumers. Looking forward, our talented teams are highly motivated to continue driving towards the long-term opportunities of these iconic brands." Fourth Quarter Fiscal 2024 Financial Review (Compared to the Same Period Last Year) Net sales increased 21.2% to $959.8 million compared to $791.6 million. On a constant currency basis, net sales increased 21.1%. Channel Direct-to-Consumer (DTC) net sales increased 21.0% to $415.2 million compared to $343.1 million. DTC comparable net sales increased 20.5%. Wholesale net sales increased 21.4% to $544.6 million compared to $448.4 million. Geography Domestic net sales increased 19.4% to $647.7 million compared to $542.4 million. International net sales increased 25.2% to $312.0 million compared to $249.1 million. Gross margin was 56.2% compared to 50.0%. Selling, general, and administrative (SG&A) expenses were $395.2 million compared to $290.2 million. Operating income was $144.3 million compared to $105.9 million. Diluted earnings per share was $4.95 compared to $3.46. Fourth Quarter Fiscal 2024 Brand Summary (Compared to the Same Period Last Year) HOKA® brand net sales increased 34.0% to $533.0 million compared to $397.7 million. UGG® brand net sales increased 14.9% to $361.3 million compared to $314.3 million. Teva® brand net sales decreased 15.6% to $53.0 million compared to $62.8 million. Sanuk® brand net sales decreased 39.1% to $6.5 million compared to $10.7 million. Other brands, primarily composed of Koolaburra®, net sales were approximately flat at $6.0 million. Full Fiscal Year 2024 Financial Review (Compared to the Same Period Last Year) Net sales increased 18.2% to $4.288 billion compared to $3.627 billion. On a constant currency basis, net sales increased 17.9%. Channel DTC net sales increased 26.5% to $1.855 billion compared to $1.467 billion. DTC comparable net sales increased 25.4% over the same period last year. Wholesale net sales increased 12.6% to $2.432 billion compared to $2.161 billion. Geography Domestic net sales increased 16.8% to $2.864 billion compared to $2.451 billion. International net sales increased 21.1% to $1.424 billion compared to $1.176 billion. Gross margin was 55.6% compared to 50.3%. SG&A expenses were $1.458 billion compared to $1.173 billion. Operating income was $927.5 million compared to $652.8 million. Diluted earnings per share was $29.16 compared to $19.37. Full Fiscal Year 2024 Brand Summary (Compared to the Same Period Last Year) HOKA® brand net sales increased 27.9% to $1.807 billion compared to $1.413 billion. UGG® brand net sales increased 16.1% to $2.239 billion compared to $1.929 billion. Teva® brand net sales decreased 18.9% to $148.5 million compared to $183.1 million. Sanuk® brand net sales decreased 33.0% to $25.4 million compared to $38.0 million. Other brands, primarily composed of Koolaburra®, net sales increased 5.9% to $67.9 million compared to $64.1 million. Balance Sheet (March 31, 2024 as compared to March 31, 2023) Cash and cash equivalents were $1.502 billion compared to $981.8 million. Inventories were $474.3 million compared to $532.9 million. The Company had no outstanding borrowings. Stock Repurchase Program During the fourth fiscal quarter, the Company repurchased approximately 119 thousand shares of its common stock for a total of $104.3 million at a weighted average price paid per share of $875.01. During the full fiscal year 2024, the Company repurchased approximately 715 thousand shares of its common stock for a total of $414.9 million at a weighted average price paid per share of $580.44. As of March 31, 2024, the Company had approximately $941.7 million remaining under its stock repurchase authorization. CFO Commentary "Deckers has grown revenue at a 19% CAGR over the past four years, consecutively delivering a double-digit revenue increase each year, while at the same time more than tripling earnings per share," said Steve Fasching, Chief Financial Officer. "Our record results demonstrate the exceptional demand for our brands and the strength of Deckers' nimble operating model, delivering industry leading financial performance. As we continue to build an exciting future for Deckers, we remain committed to making the necessary investments to maintain the momentum of our brands." Full Fiscal Year 2025 Outlook for the Twelve Month Period Ending March 31, 2025 The Company's full fiscal year 2025 outlook is forward-looking in nature, reflecting our expectations as of May 23, 2024, and is subject to significant risks and uncertainties that limit our ability to accurately forecast results. This outlook assumes no meaningful changes to the Company's business prospects or risks and uncertainties identified by management that could impact future results, which include but are not limited to: changes in economic conditions, including consumer confidence and discretionary spending, inflationary pressures, and foreign currency fluctuation; geopolitical tensions; and supply chain disruptions, constraints and related expenses. Net sales are expected to increase approximately 10% to $4.7 billion. Gross margin is expected to be approximately 53.5%. SG&A expenses as a percentage of net sales are expected to be approximately 34%. Operating margin is expected to be approximately 19.5%. Effective tax rate is expected to be in the range of 22% to 23%. Diluted earnings per share is expected to be in the range of $29.50 to $30.00. The earnings per share guidance does not assume any impact from potential future share repurchases. Non-GAAP Financial Measures In certain instances the Company may present financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (non-GAAP financial measures), including constant currency, to provide information that may assist investors in understanding its financial results and assessing its prospects for future performance. The Company believes these non-GAAP financial measures are important indicators of its operating performance because they exclude items that are unrelated to, and may not be indicative of, its core operating results. The non-GAAP financial measures presented by the Company may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to Deckers. For example, in order to calculate constant currency information, the Company calculates the current period financial information ...