Deckers Outdoor (DECK) investor relations material

Executive summary

• Fiscal year 2026 began with strong momentum as HOKA and UGG exceeded Q1 expectations, gaining market share and maintaining high full-price integrity despite a challenging U.S. consumer environment.

• Net sales rose 17% year-over-year to $965M, driven by HOKA and UGG, partially offset by declines in Other brands due to the Sanuk brand sale.

• Operating income increased 24.5% to $165.3M, with operating margin up 110 bps to 17.1%.

• Diluted EPS grew 24% to $0.93, reflecting higher net income and a reduced share count from stock repurchases.

• Strategic investments in brand, innovation, and operational discipline are supporting long-term growth.

Financial highlights

• Q1 revenue grew 17% year-over-year to $965M, with HOKA contributing $653M (+20%) and UGG $265M (+19%).

• Gross margin was 55.8%, down 110 bps year-over-year due to unfavorable channel mix, increased promotions, and higher freight.

• SG&A expenses rose to $373M, but as a percentage of revenue improved to 38.6% from 40.9% last year.

• Operating income reached $165.3M, up from $132.8M.

• Ended Q1 with $1.7B in cash and no debt; inventories at $849M.

Outlook and guidance

• No formal full-year guidance due to macro uncertainty and tariff impacts; Q2 revenue expected between $1.38B–$1.42B, with HOKA up ~10% and UGG up mid-single digits.

• Q2 gross margin guided to 53.5%–54%, down year-over-year due to tariffs and promotions.

• Diluted EPS for Q2 expected at $1.50–$1.55, compared to $1.59 last year.

• Tariff headwinds estimated at $185M for FY26, with mitigation efforts including selective price increases and cost sharing.

• Guidance reflects ongoing macroeconomic and trade policy uncertainties.