Deckers Outdoor Corporation Reports 5.7% Net Sales Increase in First Fiscal Quarter

Deckers Outdoor Corporation reported a net sales increase of 5.7% for the first fiscal quarter ending June 30, 2026, reaching $1,019.5 million, compared to $964.5 million in the same period last year. The growth was primarily driven by the HOKA brand, which saw a 7.7% increase in sales to $703.5 million, and the UGG brand, which grew by 4.9% to $278.0 million. However, sales from the Other brands segment, primarily Teva, decreased by 18.1% to $37.9 million, reflecting the phase-out of the Koolaburra brand and a strategic refocus in distribution.

The company's gross profit rose to $575.2 million, resulting in a gross margin of 56.4%, an increase of 60 basis points from the previous year. Selling, general, and administrative (SG&A) expenses increased by 12.7% to $419.9 million, leading to a 6.0% decline in income from operations, which totaled $155.3 million. The operating margin decreased to 15.2%, down 190 basis points year-over-year. Net income for the quarter was $130.0 million, a decrease of 6.6% from $139.2 million in the prior year, although diluted earnings per share increased slightly to $0.94.

In terms of operational developments, Deckers reported a total of 212 global company-owned retail stores as of June 30, 2026, up from 191 in the previous year. The company also noted a decrease in the total volume of units sold, which fell to 14,500 from 14,700. The increase in retail presence and the strategic focus on the HOKA brand contributed to the overall sales growth, particularly in the direct-to-consumer channel, which saw a 13.0% increase in sales.

Looking ahead, Deckers faces several macroeconomic challenges, including evolving trade policies and potential tariff impacts. The company has begun filing for refunds on previously paid tariffs, which could affect future financial results. Management remains cautious about the ongoing geopolitical uncertainties and their potential impact on supply chains and consumer behavior. Despite these challenges, Deckers is optimistic about its growth trajectory, particularly with the HOKA brand's expanding market presence and the continued strength of the UGG brand. The company plans to leverage its diverse product offerings and enhance its marketing strategies to drive future sales growth.