Deckers Outdoor Corporation
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General
We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily
under three proprietary brands: HOKA, UGG, and Teva.
Our brands compete across the fashion and casual lifestyle, performance, running, and outdoor markets. We
believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through
quality domestic and international retailers and international distributors in our wholesale channel, and directly to
global consumers through our Direct-to-Consumer (DTC) channel, which is comprised of an e‑commerce and retail
store presence. We seek to differentiate our brands and products by offering diverse lines that emphasize fashion,
performance, authenticity, functionality, quality, and comfort, and products tailored to a variety of activities, seasons,
and demographic groups. Independent third-party contractors manufacture all of our products (independent
manufacturers).
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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The following discussion of our financial condition and results of operations should be read together with our
consolidated financial statements in Part IV within this Annual Report. This discussion includes an analysis of our
financial condition and results of operations for the years ended March 31, 2026, and 2025 and year-over-year
comparisons between those periods. For an analysis of our financial condition and results of operations for the
years ended March 31, 2025, and 2024 and year-over-year comparisons between those periods, refer to Part II,
Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual
Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the SEC on May 23, 2025.
Certain statements made in this section constitute “forward-looking statements,” which are subject to numerous
risks and uncertainties. Our actual results of operations may differ materially from those expressed or implied by
these forward-looking statements as a result of many factors, including those set forth in the section titled
“Cautionary Note Regarding Forward-Looking Statements” and Part I, Item 1A, “Risk Factors,” within this Annual
Report.
Unless otherwise indicated, all figures herein are expressed in thousands, except per share data. References to
“domestic” refer to the US.
Overview
We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily
under three proprietary brands: HOKA, UGG, and Teva. Refer to the section below entitled “Reportable Operating
Segments Overview” for information regarding the phase out of standalone operations for the Koolaburra brand and
AHNU brand, and the prior sale of the Sanuk brand.
Our brands compete across the fashion and casual lifestyle, performance, running, and outdoor markets. We
believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through
quality domestic and international retailers and international distributors in our wholesale channel, and directly to
global consumers through our DTC channel, which is comprised of an e‑commerce and retail store presence. We
seek to differentiate our brands and products by offering diverse lines that emphasize fashion, performance,
authenticity, functionality, quality, and comfort, and products tailored to a variety of activities, seasons, and
demographic groups. Independent third-party contractors manufacture all of our products.
Financial Highlights
Consolidated financial performance highlights for fiscal year 2026 (current period), compared to fiscal year 2025
(the prior period), were as follows:
•Net sales increased 9.8% to $5,472,296.
◦Brand
▪HOKA brand net sales increased 15.9% to $2,587,330.
▪UGG brand net sales increased 8.2% to $2,738,758.
▪Other brands net sales decreased 33.9% to $146,208.
◦Channel
▪Wholesale channel net sales increased 12.3% to $3,208,107.
▪DTC channel net sales increased 6.3% to $2,264,189.
◦Geography
▪Domestic net sales increased 0.2% to $3,191,518.
▪International net sales increased 26.8% to $2,280,778.
•Gross profit as a percentage of net sales (gross margin) decreased 20 basis points to 57.7%.
•SG&A expenses increased 11.0% to $1,894,823.
•Income from operations increased 7.1% to $1,262,903.
•Income from operations as a percentage of net sales (operating margin) decreased 50 basis points
to 23.1%.
•Diluted earnings per share increased 10.9% to $7.02 per share.
Trends And Uncertainties Impacting Our Business And Industry
Our business and industry are subject to several important trends and uncertainties, including the following:
Macroeconomic and Geopolitical Factors
•Macroeconomic factors, including inflationary pressures, increased tariffs, rising supply chain costs,
high interest rates, foreign currency exchange rate volatility, escalating global conflicts, changes in
discretionary spending, and recession risks, are creating a complex and challenging environment
for our business and industry that may continue to pressure our results of operations, including our
gross margin. For example, prolonged or escalating conflicts in the Middle East could disrupt our
supply chain and increase energy, transportation, and commodity costs, as well as cause shipping
delays. While these factors did not materially impact our results of operations during the current
period, they could negatively affect us in future periods.
•We are exposed to risks from evolving trade policies, including higher tariffs and restrictions
affecting goods imported from certain regions where we have a concentration of sourcing and
manufacturing. Recent judicial, regulatory, and administrative developments regarding tariffs
imposed under the International Emergency Economic Powers Act and other authorities have
increased uncertainty related to both our future duty costs and potential recovery of previously paid
duties. The US Customs and Border Protection have announced a phased process for submitting
refund requests; however, the availability, timing, and amount of any refunds remain uncertain. As
of March 31, 2026, we have not recognized any amounts related to potential tariff refunds or other
recoveries. We continue to monitor developments and pursue mitigation strategies, including
selective pricing actions, inventory and sourcing management, supplier diversification, and
negotiating cost-sharing arrangements; however, we may be unable to offset tariff-related cost
impacts, which could materially and adversely affect our gross margin and demand for our
products.
Brand and Omnichannel Strategy
•We are focused on increasing global consumer awareness, cultural relevance, and adoption of our
brands, which has contributed positively to our results of operations. Our global brand growth
strategy seeks to drive adoption through product innovation and marketing investments across
geographies and channels, while enhancing the customer experience through category expansion
and loyalty-driven engagement.
•We continue to manage marketplace inventory through product segmentation and differentiation.
During the current period, promotional activity slightly increased compared to exceptionally low
levels in the prior period; however, we continued to achieve high levels of full-price sell through by
aligning product assortments with marketplace demand. These efforts contributed to largely
maintaining our gross margin compared to the prior period, even as the retail environment became
more promotional. We may not realize similar gross margin benefits in our fiscal year ending
March 31, 2027 (next fiscal year) due to various factors, including the macroeconomic and
geopolitical factors discussed above and the potential impact from our pricing strategies.
•Our long-term strategy is to grow our DTC channel to represent a larger portion of our total net
sales by differentiating the consumer experience relative to the wholesale channel and driving
consumer acquisition and retention. We are investing in e-commerce platform upgrades, data
analytics, consumer experience initiatives, and selective global retail store expansion. We expect
growth in our DTC channel’s net sales to continue to positively impact our gross margin; however,
as we also seek to expand distribution with wholesale partners to drive brand awareness and
market share, our wholesale channel may represent a larger portion of our net sales in certain
periods, which could pressure gross margin in those periods.
•We are pursuing growth strategies for the HOKA brand and UGG brand to grow international sales
to represent a larger portion of our total net sales. We continue to selectively expand our HOKA
brand presence through additional wholesale partner locations and targeted DTC channel retail
store expansion. We are also investing in regions that provide influential market presence to build
brand awareness, including through the launch of our US HOKA brand loyalty program during fiscal
year 2026. We expect to continue investing in the UGG brand and HOKA brand global loyalty
programs.
•We continue to take actions to reposition the Teva brand, including refocusing certain wholesale
channel distribution toward outdoor and premium retail partners and emphasizing brand messaging
around its outdoor-adventure heritage. Our efforts to reposition the Teva brand and our future
results of operations remain uncertain. In particular, macroeconomic pressure on value‑oriented
domestic wholesale consumers may continue to adversely affect Teva brand performance.
Supply Chain
•To support our growth, we continue to invest in our global distribution network, including our
warehouses and DCs, as well as 3PLs. We also continue to diversify our independent
manufacturers and the regions in which they operate; however, we maintain a significant
concentration of sourcing and manufacturing in Southeast Asia. In addition, we are currently
transitioning one of our international 3PLs to a new partner, which may create temporary
operational risks. We expect to continue upgrading our global distribution network to continue
meeting customer and consumer demand.
Reportable Operating Segments Overview
As of March 31, 2026, our three reportable operating segments include the worldwide operations of the HOKA
brand, UGG brand, and Other brands.
HOKA Brand. The HOKA brand is an authentic premium line of year-round performance footwear, which offers
enhanced cushioning and inherent stability with minimal weight. Originally designed for ultra-runners, the brand now
appeals to world champions, tastemakers, and everyday athletes. Expansion into additional product categories,
elevated marketing campaigns, and investments in brand experiences, coupled with strategic marketplace presence
have fueled both domestic and international sales growth of the HOKA brand, which has quickly become a leading
brand within run and outdoor specialty wholesale accounts and is growing across its global marketplace. The HOKA
brand’s product line includes running, trail, hiking, fitness, and lifestyle footwear offerings, as well as apparel and
accessories.
We believe demand for HOKA brand products will continue to be driven by the following:
•Leading performance product innovation, a deep connection to culture and community, category
expansion into apparel and lifestyle, and key franchise management, including consumer led
product flow and strategic product lifecycle cadence.
•Increased global brand awareness and new consumer adoption through enhanced global marketing
activations and online consumer acquisition, including building a connected ecosystem through
social media platforms, e-commerce, and retail.
•Thoughtful and strategic distribution choices, allowing the HOKA brand access and introduction to a
broader, more diverse, consumer base.
•Strategic investment in scaling lifestyle footwear, apparel, and accessories.
UGG Brand. The UGG brand is one of the most iconic and recognized brands in our industry, which highlights our
successful track record of building niche brands into consumer-focused fashion lifestyle market leaders. Born on the
California coast to warm surfers after they caught and rode the waves, we create iconic products and experiences
that are made for people to feel comfort, softness, warmth, and confidence. With loyal consumers around the world,
innovative products, and elevated storytelling, the UGG brand has proven to be a highly resilient consumer-focused
line of premium footwear, apparel, and accessories that has driven both domestic and international sales growth
with year-round product offerings that appeal to a growing global audience and a broad demographic.
We believe demand for UGG brand products will continue to be driven by the following:
•Successful acquisition of a diverse global consumer base, and focusing on key markets, through
strategic marketing activations and collaborations that resonate with a fashionable consumer.
•High consumer brand loyalty due to elevated brand experiences and consistent delivery of crafted;
purposefully built and luxuriously comfortable footwear, apparel, and accessories.
•Diversification of our footwear product offerings, such as our spring and summer lines, as well as
expanded category offerings for Men’s products such as the slip-on shoe and sneaker category,
and more iconic fashion product for our Classics line, including reimagining existing iconic styles
into new categories.
•Continued expansion of our apparel and accessories businesses.
Other Brands. Other brands consist primarily of the Teva brand. The Teva brand’s products are built for a range of
outdoor pursuits and include a variety of footwear options, from classic sandals and shoes to boots. The Other
brands reportable operating segment includes financial results of the Koolaburra brand and AHNU brand, for which
the phase out of standalone operations were completed during the third and fourth quarters of fiscal year 2026, as
well as financial results for the former Sanuk brand during the prior period through the sale date of August 15, 2024
(Sanuk Brand Sale Date). Refer to the section titled “Reportable Operating Segments” in Note 1, “General,” of our
consolidated financial statements in Part IV within this Annual Report for further information.
Use of Non-GAAP Financial Measures
We disclose supplemental financial measures calculated and presented in accordance with generally accepted
accounting principles in the United States (US GAAP); however, throughout this Annual Report, including within our
consolidated financial statements, we provide certain financial information on a non-GAAP basis (non-GAAP
financial measures). We provide non-GAAP financial measures and information that may assist investors in
understanding our results of operations and assessing our prospects for future performance, which primarily consist
of certain constant currency measures and total segment-level financial information.
We believe presenting certain financial and operating measures on a constant currency basis is important as it
excludes the impact of foreign currency exchange rate fluctuations that are not indicative of our core results of
operations and are largely outside of our control. We calculate our constant currency non-GAAP financial measures
for current period financial information, such as total net sales using the foreign currency exchange rates that were
in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and
remeasurements in the consolidated financial statements. We also report comparable DTC sales on a constant
currency basis for DTC operations that were open throughout the current and prior reporting periods, and we may
adjust prior reporting periods to conform to current period accounting policies. The information presented on a
constant currency basis, as we present such information, may not necessarily be comparable to similarly titled
information presented by other companies, and may not be appropriate measures for comparing our performance
relative to other companies. Constant currency measures should not be considered in isolation, or as an alternative
to US dollar measures that reflect current period foreign currency exchange rates or to other financial or operating
measures presented in accordance with US GAAP.
We believe presenting certain segment-level operating measures, including total segment income from operations
and total segment SG&A expenses, is important because it allows for an evaluation of operating performance and
cost structure across brands. Our segment-level non-GAAP financial measures represent the results of operations
and expenses for our individual reportable operating segments and differ from our consolidated results because
they exclude certain unallocated enterprise and shared brand expenses. Our segment-level non-GAAP financial
measures should not be considered in isolation, or as an alternative to consolidated financial and operating
measures presented in accordance with US GAAP.
Next expected filings
- ~2026-07-30 10-Q expected by 2026-08-05 (in 7 days)
- ~2026-10-30 10-Q expected by 2026-11-05 (in 99 days)
- ~2027-02-02 10-Q expected by 2027-02-08 (in 194 days)
- ~2027-05-21 10-K expected by 2027-05-25 (in 302 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-23 8-K Earnings Release
- 2026-05-22 10-K Annual Report
- 2026-05-21 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-03 10-Q Quarterly Report
- 2026-01-29 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-31 10-Q Quarterly Report
- 2025-10-23 8-K Earnings Release; Financial Statements and Exhibits
- 2025-07-31 10-Q Quarterly Report
- 2025-07-24 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-05-23 10-K Annual Report
- 2025-05-22 8-K Earnings Release; Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-02-03 10-Q Quarterly Report
- 2025-01-30 8-K Earnings Release; Financial Statements and Exhibits
- 2024-10-31 10-Q Quarterly Report
- 2024-10-24 8-K Earnings Release; Financial Statements and Exhibits