DECKERS OUTDOOR CORP
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
DECK$86.71-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-03.
0000910521-26-000005
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0000910521-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 325 current paragraphs.
13 unchanged; 57 reworded; 170 added; 48 removed; 5 previous and 85 current paragraphs rearranged.
Tables are not compared: 10 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (170)
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Report.
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under three proprietary brands: HOKA, UGG, and Teva.
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demographic groups.
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period, were as follows:
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•Net sales increased 5.7% to$1,019,531.
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▪HOKA brand net sales increased 7.7% to$703,538.
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▪UGG brand net sales increased 4.9% to$278,049.
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▪Wholesale channel net sales increased 2.2% to$666,714.
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▪DTC channel net sales increased 13.0% to$352,817.
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▪Domestic net sales increased 3.2% to$517,428.
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▪International net sales increased 8.4% to$502,103.
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•Gross margin increased 60 basis points to 56.4%.
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•SG&A expenses increased 12.7% to$419,862.
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•Income from operations decreased 6.0% to$155,301.
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•Income from operations as a percentage of net sales (operating margin) decreased 190 basis
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points to 15.2%.
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Table of Contents 21
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Trendsand Uncertainties Impactingour Businessand Industry
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Macroeconomic and Geopolitical Factors. We continue to be exposed to risks from evolving trade policies,
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including existing and proposed tariffs, and other restrictions, affecting goods imported from certain regions where
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we have a concentration of sourcing and manufacturing. There is significant uncertainty regarding the duration and
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scope of current and proposed tariff regimes, as well as the amount and timing of receipt of refunds of previously
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paid IEEPA tariffs. While we continue to pursue mitigation strategies, we do not expect these efforts to fully offset
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the incremental impact of tariffs we expect to incur during thecurrent fiscal year, excluding the impact of any
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potential refunds of IEEPA tariffs.
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We previously paid an aggregate gross amount of approximately$120,000 in IEEPA tariffs, for which we have
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begun filing for refunds. The net effect that any tariff refunds may have on ourcondensed consolidated financial
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statements may be less than the gross amount of IEEPA tariffs as a result of a number of factors, including
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accommodations provided under cost-sharing arrangements with ourindependent manufacturers, income taxes
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payable on refunds received, and other relevant factors. As of the date of this Quarterly Report, we have not
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recognized any IEEPA tariff refunds or related interest in ourcondensed consolidated financial statements. If tariff
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refunds are ultimately received or otherwise become realizable, such developments may affect our future results of
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operations and cash flows and may be considered in connection with future business decisions. Refer to Part I, Item
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1, Note 6, “Commitments and Contingencies,” within this Quarterly Report for further information on the IEEPA tariff
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refunds.
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expectations.
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UGG brand, and Other brands.
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appeals to world champions, tastemakers, and everyday athletes. Expansion into additional product categories,
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elevated marketing campaigns, and investments in brand experiences, coupled with strategic marketplace
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apparel and accessories.
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Removed paragraphs (48)
Previous report
•Net sales increased 9.8% to $4,352,927.
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▪HOKA brand net sales increased 16.3% to $1,916,087.
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▪UGG brand net sales increased 8.0% to $2,330,154.
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▪Wholesale channel net sales increased 13.8% to $2,553,163.
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▪DTC channel net sales increased 4.7% to $1,799,764.
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▪Domestic net sales increased 0.1% to $2,541,677.
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▪International net sales increased 27.1% to $1,811,250.
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•Gross margin decreased 50 basis points to 57.7%.
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•SG&A expenses increased 8.2% to $1,406,914.
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•Income from operations increased 10.0% to $1,106,174.
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•Operating margin remained flat at 25.4%.
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USE OF NON-GAAP FINANCIAL MEASURES
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RESULTS OF OPERATIONS
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(1) The Other brands reportable operating segment for the three months ended December 31, 2025 includes financial results for the Koolaburra and AHNU brands through their respective phase out dates. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further information regarding the phase out of standalone operations of the Koolaburra and AHNU brands.
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•Net sales of the HOKA brand increased primarily due to balanced growth across all channels. Growth was led by international sales, as well as higher domestic sales; collectively driven by our continued marketplace management strategy to meet increased global demand, with consumers adopting key franchises.
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•Net sales of the UGG brand increased primarily due to balanced growth across channels and geographies, driven by our continued marketplace management strategy to meet increased global demand for key franchises, including growth within the DTC channel across all regions, in addition to an increase in wholesale channel domestic sales.
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Gross Profit. Gross margin decreased to 59.8% from 60.3%, compared to the prior period, primarily due to incremental tariffs on US goods net of cost sharing arrangements and higher promotional activity compared to exceptionally low levels in the prior period; partially offset by benefits from strategic price increases, product mix shifts, and lower freight-related costs.
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(1) The Other brands reportable operating segment for the three months ended December 31, 2025 includes financial results for the Koolaburra and AHNU brands through their respective phase out dates. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further information regarding the phase out of standalone operations of the Koolaburra and AHNU brands.
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(2)The change in reportable operating segments had an impact on segment income from operations, a measure of segment profitability, and a clarification was made that certain prior unallocated overhead costs are defined as unallocated enterprise and shared brand expenses and are excluded from the measure of segment profitability.
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•The increase in income from operations of HOKA brand was due to higher net sales at slightly higher gross margins, partially offset by higher SG&A expenses as a percentage of net sales driven by payroll and related costs, rent and occupancy, and other SG&A expenses, as well as advertising, marketing, and promotion expenses.
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The net increase in our effective income tax rate, compared to the prior period, was primarily due to jurisdictional mix of worldwide income before income taxes, as well as non-recurring tax benefits for audit settlements in the prior period and reduced tax benefits from net discrete items, including a change in return-to-provision adjustments and stock-based compensation; partially offset by changes in valuation allowances on tax attributes.
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Nine Months Ended December 31, 2025, Compared to Nine Months Ended December 31, 2024. Results of operations were as follows:
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(1) The Other brands reportable operating segment for the nine months ended December 31, 2025 includes financial results for the Koolaburra and AHNU brands through their respective phase out dates. The Other brands reportable operating segment for the nine months ended December 31, 2024 includes financial results for the Sanuk brand through the Sanuk Brand Sale Date. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further information regarding the phase out of standalone operations of the Koolaburra and AHNU brands, and the prior sale of the Sanuk brand.
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Total net sales increased primarily due to higher net sales for the HOKA and UGG brands across all channels, partially offset by lower net sales for Other brands. Drivers of significant changes in net sales, compared to the prior period, were as follows:
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•Net sales of the HOKA brand increased primarily due to international sales growth across all channels, driven by our continued marketplace management strategy to meet increased global demand, with consumers adopting key franchises.
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•Net sales of the Other brands decreased primarily due to lower US net sales in the wholesale channel driven by the phase out of standalone operations of the Koolaburra brand and the sale of the Sanuk brand in August 2024.
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Supplemental Disclosure
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•On a constant currency basis, net sales increased by 9.3% compared to the prior period.
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•Comparable DTC channel net sales for the 39 weeks ended December 28, 2025, increased by 3.5%, compared to the prior period.
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•We experienced an increase of 7.6% in the total volume of units sold to 63,400 from 58,900, compared to the prior period. Units sold include all categories such as footwear, apparel, accessories, home goods, and care kits. Percentages may not calculate on rounded units.
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Gross Profit. Gross margin decreased to 57.7% from 58.2% compared to the prior period, primarily due to incremental tariffs on US goods net of cost‑sharing arrangements, higher promotional activity compared to exceptionally low levels in the prior period, and slightly unfavorable channel mix; partially offset by benefits from strategic price increases, product mix shifts, and lower freight-related costs.
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•Increased advertising, marketing, and promotion expenses of approximately $42,800, primarily due to higher promotional marketing expenses for the UGG and HOKA brands of approximately $49,700 to drive global brand awareness and market share gains, highlight new product categories, and provide localized marketing; partially offset by lower promotional marketing expenses for Other brands of approximately $6,900 driven by the phase-out of standalone operations of the Koolaburra brand.
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•Increased other SG&A expenses of approximately $39,100, primarily due to higher sales commissions, IT expenses, 3PL service fees, project-related expenses, and other miscellaneous expenses. The increase in other SG&A expenses was comprised of approximately $35,200 of expenses specific to our brands, primarily for the HOKA and UGG brands, and approximately $3,900 of unallocated enterprise and shared brand expenses.
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•Increased rent and occupancy of approximately $24,600, primarily due to higher rent expenses for investments in our global retail store footprint, as well as higher operating expenses for our owned warehouses and DCs. The increase in rent and occupancy was comprised of approximately $16,400 of expenses specific to our brands, and approximately $8,200 for unallocated enterprise and shared brand expenses.
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•Increased net foreign currency-related remeasurement gains of approximately $15,200, primarily due to more favorable changes in European and Canadian exchange rates against the US dollar.
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(1) The Other brands reportable operating segment for the nine months ended December 31, 2025 includes financial results for the Koolaburra and AHNU brands through their respective phase out dates. The Other brands reportable operating segment for the nine months ended December 31, 2024 includes financial results for the Sanuk brand through the Sanuk Brand Sale Date. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further information regarding the phase out of standalone operations of the Koolaburra and AHNU brands, and the prior sale of the Sanuk brand.
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(2) The change in reportable operating segments had an impact on segment income from operations, a measure of segment profitability, and a clarification was made that certain prior unallocated overhead costs are defined as unallocated enterprise and shared brand expenses and are excluded from the measure of segment profitability.
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The increase in total income from operations, compared to the prior period, was primarily due to higher net sales and lower SG&A expenses as a percentage of net sales, partially offset by slightly lower gross margins. Drivers of significant net changes in total income from operations, compared to the prior period, were as follows:
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•The increase in income from operations of the HOKA brand was due to higher net sales, partially offset by lower gross margins, as well as higher SG&A expenses as a percentage of net sales driven by other SG&A expenses, payroll and related costs, and rent and occupancy, as well as advertising, marketing and promotional expenses.
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•The increase in income from operations of the UGG brand was due to higher net sales, partially offset by lower gross margins, as well as higher SG&A expenses as a percentage of net sales primarily driven by advertising, marketing, and promotion expenses as well as other SG&A expenses.
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The following discussion of our financial condition and results of operations should be read together with our condensed consolidated financial statements and the related notes included in Part I, Item 1, “Financial Statements,” within this Quarterly Report, and the audited consolidated financial statements included in Part II, Item 8, “Financial Statements and Supplementary Data,” of our 2025 Annual Report, filed with the SEC on May 23, 2025, which is available free of charge on the SEC’s website atwww.sec.gov and our website atir.deckers.com.
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The following discussion of our financial condition and results of operations should be read together with our
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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 II, Item 1A, “Risk Factors,” within this Quarterly Report.
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Certain statements made in this section constitute “forward-looking statements,” which are subject to numerous
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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. Our five proprietary brands include HOKA, UGG, Teva, Koolaburra, and AHNU. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further information on the phase out of standalone operations of the Koolaburra and AHNU brands.
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We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories
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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, 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.
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Our brands compete across the fashion and casual lifestyle, performance, running, and outdoor markets. We
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Consolidated financial performance highlights for the nine months ended December 31, 2025, compared to the prior period, were as follows:
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Consolidated financial performance highlights for thethree months ended June 30, 2026, compared to theprior
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▪Other brands net sales decreased 33.3% to $106,686.
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▪Other brands net sales decreased 18.1% to$37,944.
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•Diluted earnings per share increased 13.3% to $6.04 per share.
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•Diluted earnings per share increased 1.1% to$0.94 per share.
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TRENDS AND UNCERTAINTIES IMPACTING OUR BUSINESS AND INDUSTRY
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Other Factors. Our business and industry are subject to several additional important trends and uncertainties,
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We expect our business and industry will continue to be impacted by several important trends and uncertainties, which have not materially changed from those described in our 2025 Annual Report. Refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2025 Annual Report for further discussion. Refer to Part I, Item 1A, “Risk Factors,” of our 2025 Annual Report for detailed information on the risks and uncertainties that may cause our actual results to differ materially from our expectations.
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which have not materially changed from those described in our 2026 Annual Report. Refer to Part II, Item 7,
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As of December 31, 2025, our three reportable operating segments include the worldwide operations of the HOKA brand, UGG brand, and Other brands.
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As of June 30, 2026, ourthree reportable operating segments include the worldwide operations of the HOKA brand,
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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, taste makers, and everyday athletes. Expanded marketing and 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 select apparel and accessories.
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HOKA Brand. The HOKA brand is an authentic premium line of year-round performance footwear, which offers
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UGG Brand. The UGG brand is one of the most iconic and recognized footwear brands in our industry, which highlights our successful track record of building niche brands into lifestyle and fashion market leaders. With loyal consumers around the world, the UGG brand has proven to be a highly resilient consumer-focused line of premium footwear, apparel, and accessories with year-round product offerings that appeal to a growing global audience and a broad demographic.
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UGG Brand. The UGG brand is one of the most iconic and recognized footwear brands in our industry, which
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Other Brands. Other brands consist primarily of the Teva brand, Koolaburra brand, and AHNU 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.
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Other Brands. Other brands consist primarily of the Teva brand. The Teva brand’s products are built for a range of
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The Other brands reportable operating segment includes financial results of the Koolaburra and AHNU brands, for which the phase out of standalone operations were substantially completed during the current period, as well as financial results for the Sanuk brand during the prior period through the Sanuk Brand Sale Date. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further information.
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The Other brands reportable operating segment includes financial results of brands for which standalone operations
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Refer to the section titled “Reportable Operating Segment Overview,” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2025 Annual Report for further discussion of our reportable operating segments.
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Overview,” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
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We disclose supplemental financial measures calculated and presented in accordance with US GAAP; however, throughout this Quarterly Report we provide certain financial information on a non-GAAP basis (non-GAAP financial measures). We provide non-GAAP financial measures to provide information that may assist investors in understanding our results of operations and assessing our prospects for future performance, which consist of constant currency measures. We believe evaluating 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. However, our non-GAAP financial measures are not intended to represent and should not be considered more meaningful measures than, or alternatives to, measures of financial or operating performance as determined in accordance with US GAAP.
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We disclose supplemental financial measures calculated and presented in accordance with US GAAP; however,
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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 condensed 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 year 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 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.
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forcurrent period financial information, such as total net sales using the foreign currency exchange rates that were
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Refer to Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report and to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2025 Annual Report for further information regarding the impacts of seasonality on our business.
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Report and to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
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Three Months Ended December 31, 2025, Compared to Three Months Ended December 31, 2024. Results of operations were as follows:
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Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025. Results of operations
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Total net sales increased primarily due to higher net sales for the HOKA and UGG brands across all channels, partially offset by lower net sales for Other brands. Drivers of significant changes in net sales, compared to the prior period, were as follows:
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lower net sales for the Other brands. Drivers of significant changes in net sales, compared to theprior period, were
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•Net sales of the UGG brand increased primarily due to higher global net sales growth across all channels. Growth was led by international sales as a result of increased demand for key franchises, in addition to an increase in wholesale channel domestic sales.
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•Net sales of the HOKA brand increased primarily due to higher global net sales across both
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•Net sales of the Other brands decreased primarily due to lower US net sales in the wholesale channel driven by the phase out of standalone operations of the Koolaburra brand.
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•Net sales of the Other brands decreased primarily due to the phase out of standalone operations of
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•On a constant currency basis, net sales increased by 6.8%, compared to the prior period.
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•On a constant currency basis, net sales increased by 4.8% compared to theprior period.
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•Comparable DTC channel net sales for the 13 weeks ended December 28, 2025, increased by 7.3%, compared to the prior period.
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•Comparable DTC channel net sales for the 13 weeks ended June 28, 2026, increased by 6.8%,
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•We experienced an increase of 4.8% in the total volume of units sold to 26,100 from 24,900, compared to the prior period. Units sold include all categories such as footwear, apparel, accessories, home goods, and care kits. Percentages may not calculate on rounded units.
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•We experienceda decrease of 1.4% in the total volume of units sold to 14,500 from 14,700,
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•As of December 31, 2025, we have a total of 205 global Company-owned retail stores (including 144 UGG brand retail stores and 61 HOKA brand retail stores).
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•As of June 30, 2026, we have a total of 212 global Company-owned retail stores (including 144
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Selling, General, and Administrative Expenses. Drivers of significant net changes in SG&A expenses, compared to the prior period, were as follows:
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Selling, General, and Administrative Expenses. Drivers of significant net changes in SG&A expenses, compared to
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•Increased payroll and related costs of approximately $15,900, primarily due to higher headcount investments in talent in the HOKA and UGG brands along with unallocated enterprise and shared brand expenses, partially offset by payroll efficiencies in our owned warehouses and DCs. The increase in payroll and related costs was comprised of approximately $32,700 of expenses specific to our brands, partially offset by approximately $16,800 of lower unallocated enterprise and shared brand expenses.
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brand expenses. The increase in payroll and related costs was comprised of approximately$11,100
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•Increased other SG&A expenses of approximately $14,500, primarily due to higher sales commissions, IT expenses, 3PL service fees, credit card fees, and other miscellaneous expenses; partially offset by lower bad debt expenses. The increase in other SG&A expenses was comprised of approximately $7,500 of unallocated enterprise and shared brand expenses and approximately $7,000 of expenses specific to our brands, primarily for the HOKA and UGG brands.
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sales commissions. The increase in other SG&A expenses was comprised of approximately$7,400
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•Increased advertising, marketing, and promotion expenses of approximately $18,300, primarily due to higher promotional marketing expenses for the UGG and HOKA brands of approximately $22,100 to drive global brand awareness and market share gains, highlight new product categories, and provide localized marketing; partially offset by lower promotional marketing expenses for Other brands of approximately $3,800 driven by the phase out of standalone operations of the Koolaburra brand.
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•Increased advertising, marketing, and promotion expenses of approximately$10,300, primarily due
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•Increased rent and occupancy of approximately $6,300, primarily due to higher rent expenses for investments in our global retail store footprint.
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•Increased rent and occupancy of approximately$8,400, primarily due to higher rent expenses
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•Decreased net foreign currency-related remeasurement losses of approximately $16,100, primarily due to more favorable changes in European, Asian, and Canadian exchange rates against the US dollar.
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Asian, Canadian, and European foreign currency exchange rates against the US dollar.
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Income from Operations. Income (loss) from operations by reportable operating segment was as follows:
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Income from Operations. Income (loss) from operations byreportable operating segment was as follows:
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The increase in total income from operations, compared to the prior period, was primarily due to higher net sales and lower SG&A expenses as a percentage of net sales, partially offset by slightly lower gross margins. Drivers of significant net changes in total income from operations, compared to the prior period, were as follows:
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driver of net changes in total income from operations, compared to theprior period, were:
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•The decrease in unallocated enterprise and shared brand expenses was primarily due to higher net foreign currency-related remeasurement gains and payroll efficiencies for our owned warehouses and DCs, partially offset by higher other SG&A expenses primarily due to legal expenses, IT expenses, 3PL service fees, and other miscellaneous expenses.
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•Theincrease in unallocated enterprise and shared brand expenses was primarily due to higher net
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Net Income. The increase in net income, compared to the prior period, was due to higher net sales and lower SG&A expenses as a percentage of net sales, partially offset by lower gross margins. Net income per share increased, compared to the prior period, due to higher net income and lower weighted-average common shares outstanding driven by stock repurchases.
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common shares outstanding driven bystock repurchases.
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Total Other Comprehensive Income (Loss), Net of Tax. The increase in total other comprehensive income, net of tax, compared to the prior period, was primarily due to higher foreign currency translation gains relating to changes in the net asset position against Asian and European foreign currency exchange rates, partially offset by higher unrealized losses on derivative contracts.
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Total Other Comprehensive Income (Loss), Net of Tax. Theincrease in total other comprehensive income, net of
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Total Other Comprehensive Income (Loss), Net of Tax. The increase in total other comprehensive income, net of tax, compared to the prior period, was primarily due to higher foreign currency translation gains relating to changes in the net asset position against European and Asian foreign currency exchange rates, partially offset by higher unrealized losses on derivative contracts.
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offset by lower foreign currency translation gains relating to changes in the net asset position against European and
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Our liquidity may be impacted by a number of factors, risks and uncertainties described in the section titled “Liquidity” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as in Part I, Item 1A, “Risk Factors,” of our 2025 Annual Report.
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Financial Condition and Results of Operations,” as well as in Part I, Item 1A, “Risk Factors,” of our 2026 Annual
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Sources of Liquidity. We finance our working capital and operating requirements using a combination of cash and cash equivalents balances, including cash from our repatriation strategy, and cash provided from ongoing operating activities. We also have available borrowing capacity under our revolving credit facilities. Refer to the section titled “Cash Flows” below for further discussion on cash flows from ongoing operating activities.
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Sources of Liquidity. We finance our working capital and operating requirements using a combination of cash and
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condensed consolidated financial statements and the related notes included in Part I, Item 1, “Financial
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Statements,” within this Quarterly Report, and the audited consolidated financial statements included in Part II, Item
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8, “Financial Statements and Supplementary Data,” of our 2026 Annual Report, filed with the SEC on May 22, 2026,
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which is available free of charge on the SEC’s website atwww.sec.gov and our website atir.deckers.com.
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risks and uncertainties. Our actual results of operations may differ materially from those expressed or implied by
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these forward-looking statements as a result of many factors, including those set forth in the section titled
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“Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A, “Risk Factors,” within this Quarterly
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developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily
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believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through
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quality domestic and international retailers and international distributors in our wholesale channel, and directly to
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global consumers through our DTC channel, which is comprised of an e-commerce and retail store presence. We
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seek to differentiate our brands and products byoffering diverse lines that emphasize fashion, performance,
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authenticity, functionality, quality, and comfort, and products tailored to a variety of activities, seasons, and
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2026 Annual
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Report for further discussion. Refer to Part I, Item 1A, “Risk Factors,” of our 2026 Annual Report for detailed
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information on the risks and uncertainties that may cause our actual results to differ materially from our
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enhanced cushioning and inherent stability with minimal weight. Originally designed for ultra-runners, the brand now
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presence; have fueled both domestic and international sales growth of the HOKA brand, which has quickly become
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a leading brand within run and outdoor specialty wholesale accounts and is growing across its global marketplace.
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The HOKA brand’s product line includes running, trail, hiking, fitness, and lifestyle footwear offerings, as well as
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highlights our successful track record of building niche brands into lifestyle and fashion market leaders. Born on the
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innovative products, and elevated storytelling, the UGG brand has proven to be a highly resilient consumer-focused
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with year-round product offerings that appeal to a growing global audience and a broad demographic.
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outdoor pursuits and include a variety of footwear options, from classic sandals and shoes to boots.
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Operations,” of our 2026 Annual Report.
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certain financial information on a non-GAAP basis (non-GAAP financial measures). We providenon-GAAP financial
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measures and information that may assist investors in understanding our results of operations and assessing our
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We believe presenting certain financial and operating measures on a constant currency basis is important as it
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excludes the impact of foreign currency exchange rate fluctuations that are not indicative of our core results of
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operations and are largely outside of our control. We calculate our constant currencynon-GAAP financial measures
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in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and
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remeasurements in thecondensed consolidated financial statements. We also report comparable DTC sales on a
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constant currency basis for DTC operations that were open throughout the current and prior reporting periods, and
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we may adjust prior reporting periods to conform to current period accounting policies. The information presented
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on a constant currency basis, as we present such information, may not necessarily be comparable to similarly titled
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information presented by other companies, and may not be appropriate measures for comparing our performance
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relative to other companies. Constant currency measures should not be considered in isolation, or as an alternative
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to US dollar measures that reflect current period foreign currency exchange rates or to other financial or operating
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measures presented in accordance with US GAAP.
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measures should not be considered in isolation, or as an alternative to consolidated financial and operating
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Rearranged previous paragraphs (5)
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(1)May not calculate on rounded amounts.
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Net Sales. Net sales by brand, channel, and geography were as follows:
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Selling, General, and Administrative Expenses. Drivers of significant net changes in SG&A expenses, compared to the prior period, were as follows:
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Income from Operations. Income (loss) from operations by reportable operating segment was as follows:
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Income Tax Expense. Income tax expense and our effective income tax rate were as follows: