Deckers Outdoor Corporation stock research
FY2025 Q3
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. The gross margin percentage improved relative to both periods, reflecting a higher proportion of gross profit per dollar of revenue. The filing notes forward-looking statements and discusses liquidity, but no specific operational causes are cited in the provided context.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. The gross margin percentage improved relative to both periods, reflecting a higher proportion of gross profit per dollar of revenue. The filing notes forward-looking statements and discusses liquidity, but no specific operational causes are cited in the provided context.
- The primary observable driver was the improvement in the gross margin rate, which rose from the prior quarter and the year-ago period, indicating that gross profit grew at a faster pace than cost of revenue.
- Gross margin strengthened compared to the immediately preceding quarter and the same quarter one year earlier, as both revenue and gross profit increased while the cost of revenue grew at a slower rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.3%
Gross profit
$1.1B
Revenue
$1.8B
Cost of revenue
$724.5M
Quarter-over-quarter change
+4.4 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $1.6B | $916.6M | $643.7M | 58.7% |
| Jun 30, 2024 | $825.3M | $470.0M | $355.3M | 56.9% |
| Sep 30, 2024 | $1.3B | $733.3M | $578.0M | 55.9% |
| Dec 31, 2024 | $1.8B | $1.1B | $724.5M | 60.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+4.4 pts
Year-over-year change
Dec 31, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was the improvement in the gross margin rate, which rose from the prior quarter and the year-ago period, indicating that gross profit grew at a faster pace than cost of revenue.
Gross margin strengthened compared to the immediately preceding quarter and the same quarter one year earlier, as both revenue and gross profit increased while the cost of revenue grew at a slower rate.
Monitor the trend of cost of revenue relative to revenue, as changes in this relationship directly affect gross margin.