On this page of StockholderLetter.com we present the 7/25/2023 shareholder letter from DECKERS OUTDOOR CORP — ticker symbol DECK. Reading current and past DECK letters to shareholders can bring important insights into the investment thesis.

 •  7/25/2023 Letter Continued (Full PDF)
 •  7/23/2024 DECK Stockholder Letter
 •  More "Textiles & Apparel" Category Stockholder Letters
 •  DECK Benford's Law Stock Score = 93

DECK 7/25/2023 Shareholder/Stockholder Letter Transcript:

2023
ANNUAL
REPORT

Dear Stockholders,
As we celebrate our 50-year history of building innovative brands, I   m proud to share that in fiscal year
2023, Deckers Brands delivered a third consecutive year of double-digit revenue and earnings per share
growth. Over the three-fiscal-year period of 2020 to 2023, revenue and diluted earnings per share grew
at compound annual growth rates of 19% and 26%, respectively, and our portfolio of brands delivered
record revenue of $3.6 billion and diluted earnings per share of $19.37 in fiscal year 2023.
Our industry-leading performance this year resulted from the continued global expansion of the HOKA
brand, record levels of brand heat for the UGG brand, and the prioritization of DTC through disciplined
marketplace management. HOKA was the primary driver of revenue growth, adding more than half a
billion dollars to deliver $1.4 billion of revenue, representing 39% of total portfolio revenue. The UGG
brand   s compelling products and success with younger consumers led to slight revenue growth in constant
currency, as the brand increased its global DTC and international businesses.
Deckers Brands has experienced impressive growth over the past five years, while maintaining high levels
of operating profitability through focused investments in key strategies, and nimble expense management.
With our flexible operating model, our teams successfully offset the macro-driven impacts of significant
currency and freight headwinds during fiscal years 2023 and 2022, respectively, to deliver top-tier
operating margins. We are expecting abundant organic growth ahead, which we are continuing to support
by bolstering the Deckers enterprise infrastructure through key investments in fiscal year 2024.
Importantly, Deckers remains committed to its value to Do Good and Do Great - a foundational piece of
our company culture. During fiscal year 2023, we increased our influence through regenerative farming
practices to over 300,000 acres and 80 farms as part of the Savory Institute   s Land to Market program;
BIPOC (Black, Indigenous and People of Color) representation among U.S. leaders (director-level and
above) increased to 24%; and our global employees contributed approximately 15,000 volunteer hours
through the Deckers Gives    Art of Kindness initiative. These highlights represent a sample of our broader
initiatives, which are detailed in our Creating Change Report, found at www.deckers.com/responsibility.
We believe our brands are well positioned to build on the momentum of the past few years to drive strong
performance in fiscal year 2024. With our talented and experienced management team, we will continue
to lean on our proven marketplace management strategies to deliver compelling products and consumer
experiences across our portfolio of in-demand brands. Thank you for your ongoing interest in Deckers.
Sincerely,
Dave Powers
Chief Executive Officer and President



 7/25/2023 Letter Continued (Full PDF)