Deckers Brands reported a historic first quarter, with consolidated revenue surpassing $1 billion for the first time in the company's history. The footwear and apparel parent of HOKA and UGG posted adjusted earnings per share of $0.94 for the period, topping the $0.87 analyst consensus by $0.07. Revenue rose 5.7% year-over-year to $1.02 billion, in line with market expectations.
The company attributed the top-line gain to expansion outside the United States and growth in Direct-to-Consumer (DTC) channels. International sales climbed 8.4% to $502.1 million, outstripping domestic growth of 3.2%. DTC revenue increased 13.0% to $352.8 million.
Brand-level performance showed continued strength from Deckers' core labels. HOKA recorded net sales of $703.5 million, a 7.7% increase, while UGG generated $278.0 million in net sales, up 4.9% year-over-year.
Improved profitability metrics accompanied the revenue advance. Gross margin widened by 60 basis points to 56.4%, up from 55.8% in the prior year period.
"Deckers delivered a solid start to the fiscal year, surpassing $1 billion of first quarter revenue for the first time," said Stefano Caroti, President and CEO. "This performance reflects the continued strength of HOKA and UGG, with growing global demand as both brands extend their reach through compelling product innovation."
On guidance, Deckers raised its full-year adjusted EPS outlook to a range of $7.35 to $7.50, which implies a midpoint of $7.43 that management noted sits near the consensus estimate of $7.50. However, the company left its full-year revenue forecast unchanged at $5.86 billion to $5.91 billion. The unchanged revenue range produces a midpoint of $5.89 billion, which is slightly below the analyst consensus of $5.91 billion.
Shares reacted to the mixed signals from the report, slipping about 3.4% after the announcement. Market participants appeared to weigh the EPS upside and record quarter against the fact that the revenue midpoint remains marginally under Wall Street expectations.
Investors and market observers will likely watch upcoming quarters for evidence that international expansion and DTC sales can sustain the company's revenue trajectory. For now, Deckers' quarter combines a notable profitability beat and milestone top line with a cautious full-year revenue posture.