Deckers Outdoor Stock Earnings Reports

Deckers reported a strong start to fiscal 2026: Q1 revenue $965M, +17% YoY, and diluted EPS $0.93, +24% YoY. Both HOKA ($653M, +20%) and UGG ($265M, +19%) outperformed internal expectations, with international markets driving much of the growth (international revenue +50%). Wholesale drove most incremental volume while DTC showed mixed results (HOKA DTC pressured in the U.S. but improving sequentially; retail comps outperformed e‑commerce). Management highlighted record HOKA quarter, strong reorders in EMEA, and successful product upgrades (Bondi, Clifton, Arahi). Gross margin was 55.8% (down 110 bps YoY) due to unfavorable channel mix, increased promotion and higher freight; management expects full‑year gross margin pressure from tariffs, promotion and freight despite partial mitigation from price increases and factory cost‑sharing. Deckers is not providing full‑year guidance due to tariff and macro uncertainty but gave Q2 guidance: revenue $1.38B–$1.42B, gross margin 53.5%–54%, SG&A ~33.5% of revenue, and EPS $1.50–$1.55. Balance sheet remains strong: $1.7B cash, no debt, inventory $849M, and active buybacks ($183M repurchased in Q1; ~$2.4B remaining authorization). Key investor takeaways: strong brand momentum and international expansion, near‑term margin headwinds primarily from tariffs, disciplined capital allocation (buybacks) and selective pricing/actions to mitigate cost pressure.