Deckers Outdoor (DECK) 24 Oct 242025 Q2 Earnings call transcript

Good afternoon, and thank you for standing by. Welcome to the Deckers Brands Second Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions]. I would like to remind everyone that this conference call is being recorded.

I'll now turn the call over to Erinn Kohler, VP, Investor Relations and Corporate Planning.

everyone, us you, thank and for today. joining Hello,

Caroti, Chief Financial Executive the call and and Stefano is Chief On Officer; President Steven Officer. Fasching,

of Securities of policy. begin, to call statements are we would within the this everyone company's the statements meaning Before made on the laws Litigation safe federal by are intended note Please I harbor statements which These uncertainties. forward-looking established XXXX. of are forward-looking securities Act that liability qualify Reform subject safe the certain remind for and the from to Private considerable like risks harbor to

All from strategies, statements on demand call and direct-to-consumer, our products, chain and management achieve strategies, brand foreign statements plans capital behavior, plans financial margins, and for than and environment forward-looking marketing regarding statements product channel statements distribution objectives, made current and and brands, our marketplace today, historical our other in in performance outlook. activity, of include long-term product for levels changes are logistics, impacts anticipated expenses, rates, and this our and the our strategies, inventory mix, strength and the operation including products, and performance, anticipated and revenues, fact the on our of including strategic of exchange to macroeconomic launch promotional fluctuations our timing of currency impact ability new our supply our allocation,

and are information are Forward-looking statements made. on expectations such call made based current this at management's the on available represent time statements

of from its forward-looking risks or some company to predicted, or these reports Risk Factors rules forward-looking Except Forward-looking explained and Form other update differ any our or intent uncertainties results statements. XX-Q. factors expressly Exchange, filings, results and statements on required of uncertainties quarterly Form that assumed unknown materially cause numerous the annual actual the and has obligation the statements. by on New listing the section company in risks, by the involve York disclaims law may as SEC to including XX-K Stock implied The and report its known of any any

second The the stock X financial mentioned during period share been XXXX. in split on XX, share effected split, have X on for Also, this stock a resulting of the prior per effectiveness to the including company's as September amounts adjusted and reflect call forward quarter, release metrics. referenced the company the

management including United accepted On refer generally the to were measures prepared in accounting this may financial constant that States, not in accordance principles currency. call, with

addition, prior items results. that constant In the sales are were The financial operations its be of of current and performance because that measures indicators may comparable unrelated operating that are they company these not exclude throughout the currency a company reports non-GAAP to indicative basis on core important open operating for and direct-to-consumer reporting its periods. believes

turn now Stefano. I'll to that, it over With

success. as Thank with for approach impressive I'm today's first call. to my delighted driving you, call to being And Erinn. today. this continued like our afternoon, everyone, Good to on quarter joining results and second CEO, my thank Decker's share report I'd you

executing The a long-term come we business and years, established strategy over few way my with are on has long Deckers. tenure past the throughout the

fundamentals. remaining and X principles brands to amplify us look upon on guiding we're recent to our power true As our while organization help ahead, and build we honing our wins of the proven

distinctive growing resonate a consumer-first feedback to create with audience. our that insights harnesses products off, Starting mindset and

long-term experiences that creation for for prioritize consistent, leverages less brand Next, brand and unique our brand our philosophy health. elevated marketplace positioning codes product

for build finally, expanding we're international through to globally various and committed deliver and regionally business Third, creating benefits. we're innovation unique more forward, strategically aiming diversify balanced leading-edge performance tangible a consumer markets channels. technologies that to and designs driven, And

have upon years, and strategic fueled build to them model With and intend I and operating are role, as strong opportunities prosperity we're cornerstones focus guiding we leadership long-term key drive sustained brand positioned growth. success. our principles new health, our our of established successful future These on this In for to our well enforcing HOKA, foundation. [indiscernible]

excellent of dive let's quarter, second include diluted last XX% of margins management product into products compared healthy per $X.X year's last continued that segmentation. by disciplined growing demand our innovative resonate $X.XX strength $X.XX Now billion, marketplace the of to to the XX.X% increasing with to highlights share which These versus enabled and share. thoughtful revenue results full-price and our per earnings consumers, gross reflect year global XX%

growth, like year XX% first building the the and for brand exciting brand. behind half $X over in in include last special growth eclipsing tireless HOKA XX% impressive BXC entire above period very growing With this HOKA total congratulate time. I'd than to more half XX% billion total milestone, UGG revenue achieved company versus both the first XX%, XX-month XX%, last and their company global Key team revenue first increasing Decker's growing of year. for drivers increasing efforts international an the trailing our wholesale,

the Overall, execution our globe. half around demonstrate Decker's results team's first

will for half holiday an and the year. Steve the a 'XX. fiscal for on of specifics Our full call. the on will in few fiscal later highlights provide well brand and positioned outlook brands season first increased But marketplace first, from the are share more achieve track I to

HOKA while last revenue introductions great offense, role performance driven has areas brand's and core technical with team well has the category, Specific in multiple of multi-category across to HOKA fitness fiscal partners. which of of globe. each trail by the in first are the increased their HOKA suited in around to is categories The HOKA Skyflow by focus Bondi year. HOKA the powered win refine progress advancements by XX. reads incorporating and strength and received half dominate develop Clifton made road, and most franchises highlights. wholesale encouraged We're bolstering continued significant full-price to being lifestyle. early and the year. consumers newness half Global that Mach assortment by especially the versus the demand these the XX% growth to through brand the continues to continues with performance healthy of Beginning deliver be the like first heritage

which, shoe, a ], incorporates introduced channel, CLXX to the co-exclusive feedback and was as received marks shoe. our global new store existing Fifth plate Marathon NBTC activations a HOKA [ has in [ engagement by Frankfurt brands profile has ride additional Marathon the in with highlighted York offering. which more City the Pinnacle our a feel. celebrated Skyflow the high Positive Avenue partners inspired this mid-July rocker results as Skyflow's Half. fit contribution from HOKA and for in a ] reraising partners and specialty as Market the for well a reminder, additional mark leveraging as the ] with geometry New an brand's road upgraded the updated Oxford [ flagship with Brilli lighter in challenge on faster upcoming Strava HOKA launch aggressive at in consumer speed

on HOKA of the and In the see additional most our worn race. complemented trail commercialized ] category, the the HOKA In recent champions sponsored UTMB during our ] transfer the X [indiscernible], by [ SpeedGoat the franchise. to quarter, updates versatile expert type powerful [ last X most of the adoption continued by text including version popular broad franchise the X

trail UTMB the over of Ultra a French Marathon a For you running feet Montblanc, grueling competition, those elevation XX,XXX through the unfamiliar, to pinnacle ops with ultra-trail of refers XXX-mile global game. event of

the to months the and ], proving victory at the X athlete, full-time levels. brand's is Product an for our XX-hour our Manager that inspiring they break have who fifth is becoming ago, emblematic which story Board first accessibility Senior ever Just what very amateur passion those are the not HOKA the Engineering of UTMB in people runner even can [ of compete on its own highest and His HOKA Venson race, mark. won athletes attentive do.

Okay.

to performance to half. HOKA the solid around on in globe. the continued market brands experience growth Moving first regional HOKA

to in months all build year, revenue international the X the underpenetrated the markets U.S. awareness is as growth focus particularly Through with brand's channels growth first wholesale. international drove strong of outpacing doing the across international HOKA growth results in DTC healthy outpaced fiscal Our

We continue through at ], counts engage brand's community within share elevated consumers in of all to the London, road [ according our Asia. locations running distance geographies progress market Europe share shoe key HOKA the at activations across retail to with Tokyo And and long local international Paris, Serkan gain see increased building across great key into as categories Shanghai. events

DTC, with growth the HOKA time, for acquisition U.S. delivered same drive continued balanced and the Within year. strategy At fiscal across to wholesale, in and this retention. consumer DTC increases through growth our aligned

and anticipate the season and co-exclusive launch successful ahead and of ] brand reads HOKA or positive benefited wholesale, for HOKA growth with exciting partners [ with through HOKA. a in experienced the we While engagement the specialty from with a increases who success accounts with new renovations beyond. back-to-school Saw Ketan and great and early has key consumer front mind of Skyflow. continued holiday select

brand Shifting which UGG. franchises [ highlighted from I UGG consumers, increased average. including across this with of the first shoulder demand success by resonate product over the XX% to last delivered Tasman continue franchises with to dedicated year-round experience was revenue more our price microns team's franchises results. driven year-to-date keep brands the consumers Building and Ultra International, UGG ] mini not brand's key the is which pleased year. Golden half most [indiscernible] increased above could Lowell to evolving by to reflected of today's the by be adoption across models. in enhanced iconic global the the and special. the for franchise The seasons world, Global initiatives, and momentum performance popular growth focus elevating around full

weather done ] variations complementary mill has [indiscernible] Golden franchises. launches the heat low hybrids KalinaStrata [ through platform new and collaborations, [ including recent colors department. allocating experiencing team silhouettes momentum ] like champion Gallery ] and seasonal [ aspirational with colors, this [indiscernible] and building with driving and core and by

landed the in by In these revenue, of styles growth. the year-over-year meaningful half, rig contributing first brand's top each both XX

franchises encouraging UGG segment styles around also for UGG expansion give style. infuses 'XX. for product with to these with are its for acquisition, reach confidence of of expanding the product continued opportunities and consumer expected is win highly consumers, ] with Spring comfort that brand UGG mail sign [ the both wearable driving brand's Additionally, coming We evolution. the an both as focused to to

an Los Grammy Post as digital part Recently, global experience musical in Malone including of business. partnership this I will announced I [indiscernible] and for men's videos activate the campaign, nominated Angeles. as a ambassador artists

Moving highlights into first season. head we the into for UGG peak the some regional as half

revenue first last to management. which with the trend, half robust, first This Europe driven X premium start the doubling experience. has performance have nearly growth in season enhance half in demand. the season year's earlier maintained has with partnerships was by consumer presentation lean DTC bearing and fueled been Postal levels through brand elevate high of also ago. and growth led expected, compared demand exceptional international by to region consumer As years inventory regions, is UGG that

Asia. [ the emergence UGG environment, DTC. consumer through transitional to of the UGG benefit half Golden that across Collection. a to ] has brands the the the perform styles first Turning resonate region and success year-round, continued more well Despite in from continue of with wholesale pressured to business especially

UGG the well. half Wholesale younger are majority to to was we from XX- among that to sell-through cohort. our product stock into a XX-year-old with the as and first In UGG strongest serve coming U.S., growth to as among primarily continues partners brand revenue perform consumers, accounts the earlier. allocate popular channel wholesale get looking more remains of sell-in the

and want to team global entire in thus their congratulate for 'XX. fiscal I thank far UGG the accomplishments

with product positioned demand an maintain Looking well consumer holiday ahead, attractive elevated assortment. to season the through and is UGG peak

this Although levels selling we environment premium delights the more will expect it a exceptionally holiday confident of than levels as full consumers year, season. low last we're promotional maintain experienced price

reported last well for DTC, to online results on continues first Decker's the revenue the broad revenue channel both HOKA Aligned basis wholesale. global GVTC the drive contributing the highlights XX% the million touch last first increased on an overall, stores. marketplace. with the ] XX% year half Moving increasing retail year, increasing our across Beginning limited half first channel relatively over also across of the prior basis. digital drove over markets, strength $XXX consumer with revenue growth within strong and half global international [ in incremental points, has and of fleet with million States, in the comparable $XX in first physical across brand's and incremental half and a balanced United revenue. a XX% strategy, to versus of been most and year DTC

revenue increased a meaningful meaningful As sustain everyone. and provide allowing incremental over versus contributing all, our the teams hand to international healthy the to international regions to domestic demand. Thanks, I'll From expected, by delivered HOKA global respectively. brand the now a high channel last global strength in was increasing quarter the above revenue primarily maintain to to guidance. year. also both consumer our year of growth for growth 'XX it prior second financial wholesale Both wholesale growth. but have perspective, a UGG the with HOKA driven and outpaced drove results UGG Regionally, and address U.S. rate year. our markets, UGG levels marketplace, fiscal to Steve continued XX%, update and from XX% an perspective, XX% In

afternoon, everyone. good and Thanks, Stefano,

the its products recognizable as of that across robust XXXX. feature marketplace globally. management broad-based their with driving continuing delivered quarter captivate momentum healthy elevating again by the codes, performance strategies are of HOKA sell-through. channels exceptional through to growth brand and exciting growth consumers first that We brands well-executed to are Both HOKA benefit products global continue demand half experienced from for presence and year marketplace. brand by UGG fiscal respective encouraged demonstrated regions another the innovative remained across continued UGG

brands, revenue we carrying second for enter and exceptional complex demand our forward quarter fiscal most largest look quarter. and record to illustrates forward Our this our ongoing the momentum as we

model and and environment, continue continues coupled nimble financial share we long-term brands delivering to operate and strong opportunities our enable to spend dynamic in our with framework While flexible to disciplined capture progress market growth. approach, consumer towards operating a our sustainable

of Now second into get let's the our details results. quarter

concentration primarily last record XX% representing prior increase as Second constant quarter year global fiscal was by across increased to product relative the and a also year, globally year. XXXX brand's versus benefited high prior XX% billion, HOKA brand's last wholesale continues in launches from to currency some revenue UGG benefited driven as all deliver the of the $X.XXX resonate with across growth earlier exceptional distributor shipments of quarter year revenue grew quarter a versus in marketplace. wholesale an and in of the as shipments the both broad-based the quarter Growth to of result HOKA, from brand which was and new well channels basis. on and a The million regions versus the earlier delivering as growth U.S. consumers the demand quarterly reported during $XXX XX%

on we prior Across to get both continue shelves their in consumer see HOKA response product retailers and brands. UGG, our for in than to demand strong years earlier looking to

volumes quarter, the increased were teams the particularly During to managing partners, at our our the affected second end tail quarter. highly distribution center shipment in of wholesale

maintain continue impact benefit incremental quarter in second tightly some marketplace We model. quarter expect the third of will to as this growth we the our a manage to pull

last Gross basis margin XX.X%, from XXX was XX.X%. year's for the quarter up points second

favorable UGG from closeouts to highest HOKA benefited and channel, percentage partners. from shipments wholesale partial HOKA and of and and an our distributor to freight with within margin brand, increased earlier a both higher-margin margins growth our brand as proportion from global mix larger gross products resulting the quarter offsets increased business and of our reduced Second drove channel product mix with

as million key up year's the second SG&A in spend was million, the $XXX business. we versus last XX% of areas in investing quarter $XXX dollar continue

revenue, XX.X%. percentage year last of a As SG&A slightly below at was

is per XX%. per Our for which $X.XX EPS year's for culminated diluted for the diluted prior to These share growth share quarter, the $X.XX of the representing in earnings above quarter last tax of rate XX%, compares which $X.XX year. was results earnings XX.X%

during sheet. up point billion cash XX, balance had our with September time we of $XXX was $X.XX equivalents. XXXX, ended versus same to September we borrowings. And and Turning outstanding period, last Inventory in At million, X% the the no year.

[ quarter, price $XXX of the of we average shares second $XXX.XX During worth approximately ]. an repurchased at million

million for the XXXX, repurchase. XX, September $XXX of had remaining As approximately company share authorized

for into our XXXX. guidance year updated moving fiscal Now

brand compares for expected billion, approximately above of the increasing year around is to mid-single year, to billion. strength last UGG approximately a of are From expect still XX% expectations to grow increase prior $X.X which revenue XX% growth, now We the our demand expect now to last approximately HOKA we standpoint, continued and globe, to which versus digits. the be $X.X guidance we reflecting

now mix XX% With the now margin our last approximately we investing product is gross to brand year our in to business. and a be first our to with sustainable maintaining benefits strong achieved the freight are to half, and headwinds long-term the SG&A relative and half levels. range to in recognizing the responsibly environment of more XX%, full exceptionally expected our growth promotional continue the to increasing low support year's second expectation commitment for in be of aligned expectation XX.X%,

we these approximately in to XX% now adjustments, XX.X%. the With margin expect operating an range of

are tax gross improved be share now be of the a We we effective XX.X% to in range of expectations, updating the diluted result range of and our to as earnings to margin and increasing are revenue to in our $X.XX expectations our per XX% $X.XX. rate

note, or future our be unforeseen Please that from guidance considered excludes to this share may repurchases. ongoing charges any business impact any nonrecurring

Additionally, not recessionary may which changes risks include, and are of our uncertainties, rates, no and supply limited tensions. deterioration chain currency inflationary geopolitical exchange but in assumes fluctuations pressures, meaningful current pressures, and to, consumer in disruptions guidance confidence foreign

I updated of year the management in the financial impacting conviction continue growth. brands, us broader space. sustainable two and strategic face are powerful market achieve strength even brands, as of of the Our profile we share to deliver model positioned robust confident UGG incredible retail by future the marketplace to gaining With our first the our pressures fiscal and strongest industry, outlook and macro the our well half XXXX in performance coupled with am gives HOKA in our our for

to everyone. his now I'll Stefano remarks. back final call Thanks, hand for the

HOKA outstanding strong UGG disciplined marketplace first management demand. delivered and model pull results, Steve. you, and half consumer maintaining Thank strategy, to our thanks

growing focused surpassed billion trailing has As months we're to the in on global HOKA reach revenue, $X billion. X now awareness XX next rent

remains evolution become time, of is through HOKA while aspiration a leading building on through meaningful At athletic for growth focused the iconic franchises icons. performance the Our also elevation same innovation. to and brand delivering new UGG

brands, we'll of and As powerful our we these health long-term continue building prioritize the success portfolio. both of

Deckers true our to continue remain outlined and organization to principles fundamentals, and remaining come. our we our approach executing years long-term continue the This to focused overall, growth enable driving value for strategies, earlier. to For us prioritizing guidance will delivering

of our focus To conclude, America's for good our upholding by and team, to other for continue appreciation among do for I'd the company's who employees values, was would valued for greenest like like and champion note management I my our joining us that who thank and partners our consecutive I'd including you as execute to third great. continue of one our companies strategies their brands to while recently On Further, things, our shareholders dedicated continued retail this to express Decker's Newsweek on behalf recognized growth Deckers our journey do to support. year. thank elevate today.

for turn Q&A. the the call With that, I'll operator to Operator? over

comes line of [Operator from first Instructions] Your with Sole Jay UBS. the question

growth. Great. very to the I HOKA. the guidance, rate strong ask about in Obviously, want

And this the introduced about doing styles you higher ways for brand that it's also allowing doing what some not top continue what priced how Cielo to this the of new and are and channels? Skyward just about impact it the brand they're line new extend but you've and the talk into talk for just XX. the X, those expand year, to growth, Just of

past Tectonx XX, performed that Jay. this Skyward we [ introduced expected. products Thanks, referring have X the over the recently, Pinnacle All Cielo past better Yes. and even X year, we And I'm than months our to most ].

point. first the for have price cracked $XXX and the really we time, So above

of styles. innovation very Pinnacle So the with pleased we're our performance very,

Yes.

I think is Jay, and Steve. this

years, that. for become penetrate to distribution. is kind a add that important. new to strategy for and those really we of the Just expand continue styles and market, us now several about and This as point, kind of quarters heard on This to you've where talk part of of is couple to our your

move continue also that distribution So resonate as box to out distribution. of performance we bigger as expanded community, able into of with some a to our existing we're some use in product we

where Stefano's encouraging. with success very And so styles these point, to seeing new is we're

You're it's that brand. only year from seeing but seeing us also improving a on through And that an you're margin. the the it's a the how gross not in gives outlook of full some that's on margin we're come QX encouragement increased outlook line, of top some for and what seeing growing the standpoint margin profile

in existing specialty channel. product a how think, that we before. resonate many working things, also continues we've build have where continued build continued product. How that run playing to performance That to consumers points HOKA resonate expand distribution brand, strategy. out we I with everything that can is with about continue to So us other in product in that the concert, that elevated also we're talked allows to This has just

think encouraged playing everything some performance So out. within the better-than-expected you're by results And even QX. seeing with as we're I

think consumers. the how really it's of with resonating the again, demonstrates And So well brand encouraged. just and I QX, strength

Baird. comes question with Komp of next line Jonathan from Your the

If I ask could HOKA. a follow-up on

You raised guidance XX%. to

XX%, the think the a about growth give planning half, perspective channel should would little more how on that geography be the you more in half? helpful. given first how second we could us detail on you're performance Just or was any And

think, part, I'll if Thanks, first I Steve on again. But we too. Stefano, the how it's jump Yes. played it, you it's in to year. out want and again, Jonathan, take the

beginning half out. that and of of our year, majority said really the year, to going was of growth the So the in first we come said played what's if what the you about we think at that's remember the

strong we sell-in. So HOKA, case as there were we the would knew of bringing out in be new styles,

and with first with think consumers. that said product it's we're we've I encouraged of how kind question, of sell-through the resonating the in

some knew that we and expansion. wholesale by is of the selling in what But

that going the So percentage start second thought. selling higher we doors playing number increase We down bit in that first the half, of again the right? what create which half, the as settle exactly in is was back a half, out were see to first to that we to we to growth little in

is better what outlook XX%. too, performance And increase to think then slightly confidence your right? chasing to that's us to want So anticipating. that with that us with and who we're encouraged get in HOKA It's it's to everything. on what's again, point, not How of giving going just But doors we control distribution our has to very think select I we the now to go partners. kind thoughtful, going what it's strategic. about very we those we're

of So that's kind we're at. where

think how doing by other mentioned internationally. encouraged we're thing, is well also the and Stefano it I very

So the domestic continue front. encouraged we're international by not in we we making share are do marketplace, the only very gain to the on that progress

around Shoe in And very runway, and run-focused of very, both the as is Palace have of is recently internationally. whether are What as with even brand, we U.S. the some accounts. U.S. both with additional JV opened, and very specific distribution international, it's accounts still the or plenty we specialty doors [ in here that new in existing to encouraging here have performing the well well ] very,

observed understand I this Just of seeing more price assumption on in curious one that at full of the margin. the baking embedding pullback selling Steve, are a what into back you're the signs marketplace? assumptions just And point? in guidance? any that the I you a sort Okay. forward-looking half that the sort Or is you're gross of Great. you more of up then, but the there. want to for modeling follow follow-up,

forward It's think challenged question. approaching good Yes, early, generally holiday things a macro this we season, right? still little assumption. I We're know a And of speaking. more bit more probably bit a are

And the a cautious promotion will so bit we more little assumption with that being we see. around are anticipate we our

margin. there's the that a gross couple expectation in also think considering half of in we're that of some second I things

One got year than we product is year channel did the we've in more ago. this a

our running So out product. recall were year, wholesale of that last QX many of partners

up channel. Some you in into saw of growth that increased selling QX that that is

in So we more know sitting that product there's channel. the bit little a

see, that we'll holiday how kind very So out. the on plays again, still of in season early

the a of have HOKA inventory QX normal front, to to some through and that product course, as older new in you'll the then styles in we be some going move there we're some some in of FY new And may QX on you products. of promote the as anticipate that inventory 'XX, introductions bring

Vasilescu Your question next comes BNP Paribas. line the of from Laurent with

I'd about HOKA [indiscernible], ask to love International.

be very Europe on for international for that about International -- audience, of versus That time? versus innings China? you fourth helpful And business. was commented give you momentum go for of terms quarter is it of think I can Stefano, audience. the you XX% call, where would over the there's HOKA maybe can the there. HOKA do kind the of frame what like in lot to Japan you Clearly, are a want

the internationally consideration and awareness adopted so and Great is that Brand is in the the successful in behind we've question, and U.S., International between are awareness in mid-XXs mid-XXs. years the here. is the U.S. playbook the we Laurent. X X and has same been in

has generated in a title lot from the UTMB. have relationship Europe for We're internationally. in of the now that the challenge us sponsor, with brand consumers of have upside also main German in market. ], in relationship China Across to and world, which fantastic the we we sponsored So triathlon see UTMB, and regions, all sponsor, plenty and businesses. biggest distribution from the the behind extensive is [ the to our out Recently, feedback interest also we the trail Germany, space.

the partners. DTC business across globe upside continues thrive as of well. us plenty for And So of our existing newer course, to there with and

term, the our question expect to to long Ideally, very XX-XX U.S. And globe. to a about see I'd progress happy we like across So between split with business where do the international. your the be. and

Yes. again, is think, Laurent, Steve. I And this

the that it's were improved international and performance with seeing what Just But think the we QX. as as was global. opportunity international is really we're we in performance, business of that about growth impressed

now. couple been brands is resonating North year. I our really seeing front our a come focused the of years in And half product in think internationally. QX with demonstrates ago a relevant really North then initially of impressed market, brands talking what that's make we are we've especially brands and that American on encouraged performance how this and really They're and right with success first internationally, you're global how about of for on the really it of America our and with what export consumers years kind the through

would wonderful. follow to love That's I up.

I think, for quarter. remember teasing new [ the fourth I out you correctly Clifton in XX call, the XQ, I were comes think there's I from you Steve, mentioned it think if the last ] products

think footwear know, mentioned new with that see a think apparel should some just extension, or the ago few we into a XXXX about the categories you we I product products high how ]. don't [ I way? into bigger seconds other brand extension level, do in maybe

Yes.

a introduced [ an sold all the to and biggest is new as lifestyle marketplace last been space [ including [ is Evonik upgraded that [ MatatipeedLight market the ]. ], over impressive delivered of products. which is ] just of X which product [ few complete our trail ] since RCA In we in product, nivo franchise, brand-new is [indiscernible] the we amount newness have Skyflow, very Skyward Speak First the which all, months, of a or X, ],

the delivering, been of have hence the newness very, been and has very QX QX, strong also very very, impressive. amount So in especially we innovation

and to to biggest our upgrades Bondi update We the in Bondi is and X January hit going Clifton hit April. Bondi, Clifton. products, is in have

will updated. weather we be foray to February. [ product Cielo in XX that, have [ the And ] updated day. into we any fast about [ Kaarst to hit our be a first ] new ] addition market issue the our In have with cold to

very So robust. trade And very our has from the pipeline the is very, reaction positive. been

with hear. to season. Best holiday luck Wonderful the of

Williams next with Your Sam Trading. of from comes the question Poser line

other for your stuff. Thank brand, DTC can Then you very -- you first just call. much. I'll to can me give welcome the Erinn, get to Officially each we please? the

I provide what wholesale can the is second so and for global by Yes. completed, just distributor Sam, brand. quarter

And $XXX for distributor so approximately and would combined UGG, wholesale that global million. again, for be QX

million. that's HOKA, For approximately $XXX

Teva [ that's For $XX approximately million. ],

is would would brand, which, that $XX approximately $X be Sanuk in a the as completed the brand sale For partial million be of then and ], Koolaburra which brands, quarter a as our [ mid-August. approximately other predominantly we reminder, leaves about [ ] million that for

ship three is some Okay. Clifton move three ] the of how HOKA? the X were what in Bondi of margin the that of will -- gross and like QX X how as X ] much I you versus anticipate how -- Bondi how the will [ of QX headwind excuse much over Clifton few of like out us then that do the number how much the is X, give much the Clifton of XX you sorry. for markdown in idea And And freight UGG the for shipped have [ is is promotions? sales me. and versus the you in how -- and or the Bondi ] ship freight then big Clifton next Can much months? [ And QX, U.S. was ], impact of and [

kind of questions, that's out of your more Sam, approach level. lot give question. modeling a break out level of detail. first on from kind your We it don't so high detail that of We just a don't of necessarily Yes, to I'll kind

what we of second is about We one to of headwind in in kind we've XX the XX the consistent the begin of with was freight headwinds headwinds to we've points. that basis said area, so On QX. related a point basis is experience said think would we kind pretty what freight, -- did, freight

we numbers right, XXX. the of indicate, improvement were an as Now

product So of really we well largely and based from kind mix an kind as that of product that UGG and came of HOKA as other the the of improving margin the product some both within mix sold. composition on

pressures your we're that in So of gross the margin experience from thinking a point about second then to level, and we'll higher half. the how kind

Remember, we some and in We do. that. Bondi past updated we style normal seen the terms the be think will the in within biggest of of big of X how that specifics quarter. replaced of There have you've always each given do much styles kind not be as X Clifton And are to the promotion in -- course when models. will we a

how always it. some of inventory of we've kind dependent inventory promote demonstrated much about how So not be be the those management will that years, there's saying and launch we're over the we We're to as approaching level what we'll going careful know we're but we to on dates. and kind be. of have will That

That's in it going play to to. we promotion some that out. recognition there But that is, be we're gross decline half increasing to year. this second embedded that we'll that are point, margin So guiding

margin We're a We're So event. read through the a how we'll some on be, we're we're which out. see which trying our that from things to bit inventory making selling encouraged plays and actually is what's our see expectation been anticipate selling out. margin, year, product it why how for well, will going assumptions. we'll assumptions contributing little to is gross macro what trying We're levels in again to play has better increasing on but

got Can X tariffs. going to idea last you forward tariffs how less on thing given ago? us some weeks happen thinking I going about than give of you're what's one

Yes.

We'll not an an it's a how interesting It's of out. think who think election, all hearing to I lot going right? before clear, come question. I knows you're is noise see. that

into that into guidance see. were were us, tariffs to figured too early impacted consideration now. really not something So us take have our we'd that's if necessarily to there that that's But right for

Thank you very much.

Continued success.

with next question Telsey of the Group. Dana Your from Telsey line comes

results. the on nice Congratulations

just growth XX% international year. the for all you're terms in of wholesale by Is differ and the on Does in all in domestic? from does focus on of this to lastly, what it at international and it moderation and quarter earlier the from by of wholesale the to it wanted second first by And And seeing? differ categories shipments. brand digits Just mid-single going XX% accounts? UGG

year? is the -- you're for thinking could the UGG that it the upside new how balance of be there introductions product have, of you newness Given to for that number? And

All I'll little right. that a bit. to Thanks, attack try Dana.

bit indicated that wholesale think expected it's that beginning And So it the is a we that shipments. different we're I we the again, for So of this by seeing. earlier right? year to dynamics important see brands, little

have brand, first, last selling through we want as some that for to one So brands, And brand, partners growth contributed that last as ourselves. happened year wholesalers encountered contribute our UGG of with well earlier. product a we DTC approach we continued for product. at continuing This was to we that of some the then the opportunity if that helped UGG success in the the look as things growth. earlier year, to but That performance strong stronger participate has it an quickly shipments what given of with year our demand

that as the the are in more QX. contributing in because, one, half product that's So is QX you're the going that and to they that kind there inventory as with percentage increase continuing seeing of back channel. their to sitting two, is growth earlier; think higher to participating percentage brand, our seeing you're want that We in in impact

always To some. your We'll upside, see. There's on question Sure.

controlled But again, a are with opportunities. in marketplace. with I we upside operate we very think some prepared inventory

should work about be So the it that half we'll be how careful growth there. back into really we

opening. of last with right? disciplined opening careful were as many very we've to growth expanded number more HOKA, So recall, we globally how spoken seen it very you Then increasing increase demand are again, we are year, there, distribution. We to we what for we we as management. doors So distribution, relates counts, with as our again the in door brand, the tight year, were marketplace were we This said is of about points right? have

are half are seen and accounts of growth in to half peers very again, controlled sell-in the because distribution. that opening far that is you've in controlled. more so Again, fewer percentage But in first doors, points the that a than of contributing is we many very That is year. distribution, what up we lifting our right? first to the of those So

starting So start because some that's inventory growth sitting in of the kind of second see to moderation you those where to see you're in outlets. half expanded that

half HOKA. as happened the the first expansion So it to relates in of much

what that's So you'd in at the to of percentage half, basis. we said our on would a see growth and growth the a look when year at basis. majority first beginning of you it full The the start year on come It's moderate.

prior how demand the in And guide Always see demand that for calendar took the in So of strong we uncertainty the upside, little marketplace as right? it our out, we of about versus falling early of annual lot bit room of years. this below thinking questions, for retail half prior but of and year kind plays and a second heard some a number we're as half how control advantage we'll the some back product.

thought So better percentages in and encouraged with but performance. bit half we'll with see, we much the how with from what started we first little line a

Patel line with Raymond from [ James. comes of question next ] the Rick Your

is out? my of in any top Curious are think execution. about you're Obviously, in in we that click Can tough the need changes add think there. backdrop strong on how China if on you in seeing Asia? performance investors we or your as do lot performance about the your congrats to Asia year? this I'll to given line you the of changes double And of strategy with make worth rest calling growth contribution any the also, then a

Specifically very China, with Rick, [indiscernible] done pleased market. China we're team have what in

climate greater collaborations are a perform, also Our with throughout [indiscernible] continues major local consumers, are stores. challenging brands HOKA well well is styles communities. relationships. very in [indiscernible] and to now well races And able and they in their footprint connect a and now perform performing models info brands to of we the economic as secure top the as our result and major as country with to X continue

what contrast to in pleased very without the is with performance, which in happening we're So are brands our China marketplace. the

As digits months double grow the that's at and strong the hope and Asia, to continues for few upcoming regards for Asia seasons. us, to

kind to just on to of And add Rick. that. Yes,

Europe, we're I a In years, kind are seeing we're of think think as we've further in call, we than what said, couple America. in of I North we along, as the Asia international, would generally earlier behind speaking, say, said Stefano in right, Pacific. about

in saw so the Asia Pacific in by and the encouraged half QX, we year, strength Europe and seeing with encouraged of really in China. And the we're first again very especially what that

I and we're in China. to note very think the thing here remember is small

are is to aware in other So And China. community build very of within well saying they some be doing China. and brands the -- of a lot are encountering we're what fortunate small. to that of we're challenges what and We're

forth. so So sponsorship, of lot and in, bringing activities people a

have with the those resonate brand. And benefit so of we now really and grow to consumers and that being small beginning

in be distribution. where that's very is So Europe behind bit in us again, of little at Pacific to brand a we're growing small a a Asia But China. terms time good for in

to The remember in is direct a We're in other more China thing is we anywhere else. than China. bit distribution little different are

So it's experiences. retail about

stores more China in else. anywhere than have do We we

to doing and very there. And very low and small in but we're with consumers consumers So marketing there. the encouraged that's with growing utilization by how about the that resonating part, we're resonate

final from question And Yih line Barclays. comes the your of Adrienne with

Great.

it, in in deploying Dixon my U.S., [ address but about not Let you talk you Steve, then Foot XXX, maybe where Locker. what specifically don't how dollars? sort when of talking you And Stefano, ] retail the a congratulations. give the bit you national were has let's growth numbers a Locker is in think HOKA footprint versus you're to with investing you the little creation much door the call the can it, can and then, of [ smaller UGG U.S. demand and Dick's budget, what those in are of and sort me ] partners, I expansion Foot was maybe strategy you're if half wondering I add targeting, if

relationships. to practice Thanks, our Adrienne. coals accounts provider not specific to [indiscernible] related

selective in very are our expansion. We

We way the we manage be diligent continue about marketplace. to very the

we humor We we And open at our are before doors. looking we productivity perform, when expand.

the our and continue Locker we Foot what been That's that and strategy. has to DSG of do So others. with likes

I demand we that gross a And think terms good seen you've investment better, some we're question and it's of how expansion, continue Yes. of as spend creation, and We margin creation. question. part second taking of portion about to your performing think then demand the a in in our are and we

with the best-performing the of for space able the invest to these continue us so in to globe, be And to across it's important, right, brands brands. two behind

on of and in of some done marathons So a where, prepared kind with some question UTMB our and brands, UGG Post your going with things the top our is remarks, and forth. clearly, mentioned we've HOKA of his so one Malone, X and lot with Stefano in terms that of sponsorship

that. do to continue to going we're think I

What doing also we're is more creating content. localized

So localized as more we're creating are seeing we content. international in improvements and our growth markets,

seeing gross of an margin our is some with years. revenue, last So over the couple improvements afforded us spend increase overall, what you're That's to in marketing to percent as that seeing. of the a we're

SG&A, improved that We've create marketing going that's variable So taken portion as our really demand a improved spend to to demonstrated further by the our guidance of behind margin. with gross increase brands. for outlook and our and

financially So across backing given we'll opportunity, you that increasing consumers firmly think resonate with disciplined. We brands, that's but see We're And very our we're it, an how off. that local to behind the operate. take at look I paying opportunity, were we globe. content

well as session question-and-answer today's call. We the for you as thank This concludes participating.

disconnect lines. now may You your