Deckers Outdoor (DECK) investor relations material

Executive summary

• Second-quarter revenue rose 9% year-over-year to $1.43 billion, with diluted EPS up 14% to $1.82; first-half revenue grew 12.1% to $2.40 billion, driven by HOKA and UGG, while other brands declined due to phase-outs.

• International sales surged, up 29.3%–38% year-over-year, led by wholesale and strong DTC performance, offsetting a domestic decline.

• Brand-building marketing investments expanded HOKA and UGG awareness globally, positioning both for long-term success despite U.S. consumer pressure.

• Operating income rose 12.3% to $491.8 million, with operating margin steady at 20.5%.

• Focus remains on balancing DTC and wholesale channels, targeting a 50/50 split, and delivering profitable growth in the largest fiscal quarter.

Financial highlights

• Q2 revenue reached $1.43 billion, up 9% year-over-year; HOKA revenue up 11.1%, UGG up 10.1%.

• HOKA brand net sales for the first half rose 15.3% to $1.29 billion; UGG up 12.3% to $1.02 billion.

• Wholesale channel net sales increased 18.2% to $1.69 billion; DTC channel net sales decreased 0.2% to $706.8 million.

• Q2 gross margin was 56.2%, up 30 bps from last year; first-half gross margin was 56.0%, down 30 bps due to channel mix and promotions.

• Ended Q2 with $1.41 billion in cash, $836 million in inventory (up 7%), no debt, and $2.2 billion authorized for share repurchases.

Outlook and guidance

• FY2026 revenue expected at ~$5.35 billion; HOKA to grow low teens %, UGG low to mid-single digits %.

• Gross margin projected at ~56%, with tariff headwinds in the second half partially offset by mitigation strategies.

• SG&A to be ~34.5% of revenue; operating margin ~21.5%; tax rate ~23%.

• EPS guidance: $6.30–$6.39; international and wholesale growth to outpace U.S. and DTC.

• Guidance assumes no major deterioration in macro risks, including tariffs, consumer confidence, FX, supply chain, or geopolitics.