Deckers Outdoor (DECK) investor relations material

Executive summary

• Achieved record third quarter revenue of $1.96 billion, up 7% year-over-year, driven by strong global demand for HOKA and UGG brands, with balanced growth across DTC and wholesale channels.

• HOKA revenue grew 18–18.5% and UGG revenue increased 4.9–5% versus last year, with both brands showing strong international and DTC growth.

• Diluted EPS reached a record $3.33, up 11% year-over-year, supported by robust gross margins and high levels of full-price selling.

• Net income for the quarter was $481.1 million, up from $456.7 million.

• Raised full-year fiscal 2026 outlook for revenue, gross margin, and EPS based on strong year-to-date performance.

Financial highlights

• Third quarter revenue: $1.96 billion (+7% YoY); HOKA: $629 million (+18% YoY); UGG: $1.3 billion (+5% YoY); Other brands declined 55.5%.

• Gross margin: 59.8% (Q3), slightly down from 60.3% a year ago; FY26 guidance: ~57%.

• SG&A: $557 million (28.5% of revenue), up 4% YoY; operating margin for the quarter was approximately 31.4%.

• Cash and equivalents: $2.1 billion as of December 31, 2025; inventory: $633 million (+10% YoY); no outstanding borrowings.

• Net income for nine months ended December 31, 2025, rose 9.1% to $888.5 million; diluted EPS up 13.3% to $6.04.

Outlook and guidance

• FY26 revenue guidance raised to $5.4–$5.425 billion.

• HOKA expected to deliver mid-teens revenue growth; UGG to increase mid-single digits YoY.

• Gross margin guidance raised to ~57%; operating margin expected at ~22.5%.

• Diluted EPS guidance increased to $6.80–$6.85 (+7–8% YoY), including impact of share repurchases.

• Q4: HOKA to grow 13–14%, UGG revenue roughly flat due to timing of shipments.