Deckers Outdoor (DECK) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 began with strong results as HOKA and UGG exceeded Q1 expectations, driving revenue up 17% year-over-year to $965 million and diluted EPS up 24% to $0.93.

• International markets drove significant growth, with international revenue up 49.7% while U.S. sales declined.

• Operating income increased 24.5% to $165.3 million, with operating margin up 110 basis points to 17.1%.

• Both brands leveraged innovation, brand-led strategies, and global expansion to sustain momentum.

Financial highlights

• Q1 revenue reached $965 million, up 17% year-over-year; HOKA contributed $653.1 million (up 19.8%), UGG $265.1 million (up 18.9%), and Other brands $46.3 million (down 19%).

• Wholesale net sales surged 26.7% to $652.4 million; DTC net sales rose 0.5% to $312.2 million.

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

• SG&A expenses increased 10.5% to $372.6 million (38.6% of revenue), driven by marketing, payroll, and retail expansion.

• Diluted EPS was $0.93, up from $0.75 last year, aided by share repurchases and higher interest income.

Outlook and guidance

• No formal FY26 guidance due to macro uncertainty and tariff impacts; framework expects HOKA to be fastest-growing, international to outpace U.S., and wholesale to outpace DTC.

• Q2 revenue expected at $1.38–$1.42 billion, HOKA up ~10%, UGG up mid-single digits.

• Q2 gross margin expected at 53.5–54%, with SG&A at ~33.5% of revenue; EPS guidance $1.50–$1.55.

• Guidance reflects ongoing macroeconomic and trade policy uncertainties.