Deckers Brands Surpasses Q2 Expectations, Raises Forecast

Deckers Brands reported robust Q2 fiscal 2025 results, significantly surpassing Wall Street expectations with a revenue of $1.31 billion and earnings of $1.59 per share. This led to a 13.6% rise in after-hours trading and a premarket surge of up to 15%. The strong performance was driven by the popularity of its Hoka running shoes and UGG boots, which saw sales increase by nearly 35% and 13% respectively. The company raised its annual sales forecast to $4.8 billion, reflecting a 12% year-over-year increase, up from its previous guidance of a 10% increase. Deckers' gross margin improved to 55.9% from 53.4% in the prior year, and it ended the quarter with $1.23 billion in cash and no long-term debt. Analysts attribute Deckers' success to its strong market position, effective brand strategy, and increased marketing investments aimed at boosting global brand awareness.