Thu, Oct 31, 3:42 PM (63 days ago)
Deckers Outdoor Corporation (NYSE: DECK) reported significant growth in its Q2 2024 results, with net sales increasing 20.1% year-over-year to $1,311,320, driven by strong performance in both the wholesale (up 20.2%) and direct-to-consumer (DTC, up 19.9%) channels. Gross profit margin improved to 55.9%, attributed to favorable product mix and reduced closeouts. Income from operations surged 35.8% to $305,086, while net income rose 35.7% to $242,321, leading to a diluted EPS increase of 39.5% to $1.59. Cash and cash equivalents decreased to $1,225,681 due to significant stock repurchases totaling $256,290. The company successfully navigated supply chain challenges, though it faced rising freight costs. A forward stock split on September 13, 2024, adjusted share data retroactively. The divestiture of the Sanuk brand completed on August 15, 2024, is not expected to materially impact overall results. The outlook remains cautious amid macroeconomic uncertainties, including inflation and currency fluctuations, but management anticipates continued brand growth and market share gains, particularly for HOKA and UGG.