DECKERS OUTDOOR CORP
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
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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.
Sep 30, 2026 · Filed Oct 29, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0001628280-26-068116
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 325 previous paragraphs and 395 current paragraphs.
121 unchanged; 103 reworded; 136 added; 94 removed; 7 previous and 35 current paragraphs rearranged.
Tables are not compared: 6 previous and 11 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 (136)
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demographic groups. All of our products are manufactured byindependent manufacturers.
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•Net sales increased 4.4% to$2,500,085.
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◦HOKA brand net sales increased 7.3% to$1,380,742.
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◦UGG brand net sales increased 3.9% to$1,064,411.
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◦Wholesale channel net sales increased 4.2% to$1,759,726.
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◦DTC channel net sales increased 4.8% to$740,359.
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◦Domestic net sales increased 0.9% to$1,353,270.
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◦International net sales increased 8.7% to$1,146,815.
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•Gross margin increased 280 basis points to 58.8%.
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•SG&A expenses increased 8.9% to$925,518.
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•Income from operations increased 10.8% to$544,757.
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•Operating margin increased 130 basis points to 21.8%.
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most significant of which aredescribed below:
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Tariffs and Related Refunds. Evolving trade policies, including tariffs and other import restrictions, continue to
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expose us to risks associated with our sourcing and manufacturing concentrations. The scope and duration of
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ended September 30, 2026, we recorded approximately$46,000 of IEEPA tariff net refunds as a reduction to cost of
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sales and approximately$3,000 of related interest as interest income within ourcondensed consolidated statements
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of comprehensive income. The net effect of the refunds reflects accommodations provided under cost-sharing
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through October 8, 2026, we received additional IEEPA tariff net refunds that will be recognized in ourcondensed
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consolidated financial statements in the third fiscal quarter which, combined with the refunds previously received,
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total approximately$87,900, plus associated interest for a total of approximately$4,700. Refer to Note 7,
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Quarterly Report for further information on tariff refunds, including related accounting treatment.
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European 3PL. During thecurrent period, the transition to a new European 3PL resulted in temporary fulfillment
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disruption during a peak shipping period, which affected certain wholesale and DTC channel shipments and
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constrained our ability to fulfill demand in the region. This disruption impacted our results of operations, including
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higher reserves for customer chargebacks and related estimates. We have implemented corrective actions with our
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3PL partner to improve operational execution, restore service levels, and enhance visibility across the fulfillment
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network. While performance improved near the end of thecurrent period, we continue to monitor the transition
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closely and potential residual impacts may persist in the near term.
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Consumer Demand and Promotional Environment. During the current period, softer consumer demand and lower
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traffic and conversion in the domestic marketplace adversely affected our domestic DTC channel net sales.
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Consumers increasingly concentrated purchases around promotional periods as promotional intensity increased
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across the marketplace, particularly in the athletic category, while we maintained full-price selling discipline.
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Performance also reflected mixed results across certain product updates as we believe consumers in the current
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macroeconomic environment are delaying purchasing until closer to the time of immediate need. These conditions
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may persist in the near term and continue to impact our net sales and results of operations. In response, we are
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focused on a measured approach to growth that prioritizes full-price selling, market share gains, and gross margin
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preservation through premium brand positioning. While current consumer demand trends remain uneven,
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particularly in portions of the domestic marketplace, we continue to believe our strategic focus on differentiated
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product innovation, improving marketing effectiveness and digital execution, disciplined inventory and expense
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Removed paragraphs (94)
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demographic groups.
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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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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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potential refunds of IEEPA tariffs.
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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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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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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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Other Factors. Our business and industry are subject to several additional important trends and uncertainties,
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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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“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2026 Annual
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expectations.
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apparel and accessories.
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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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Table of Contents 22
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Table of Contents 23
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were as follows:
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(1) The Other brands reportable operating segment for the prior period includes financial results for the phase out of the
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consolidated financial statements in our 2026 Annual Report for further information.
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as follows:
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channels, with diverse product adoption in the DTC channel, led by growth in our international
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market as well as our domestic market. Wholesale channel growth was driven by higher sell-in in
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the domestic market, partially offset bylower wholesale channel international net sales due to
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planned shipment timing differences primarily from thetransition of our European 3PL in theprior
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Consolidated financial performance highlights for thethree months ended June 30, 2026, compared to theprior
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Consolidated financial performance highlights for thesix months ended September 30, 2026, compared to theprior
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▪Other brands net sales decreased 18.1% to$37,944.
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◦Other brands’ net sales decreased 34.2% to$54,932.
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•Diluted earnings per share increased 1.1% to$0.94 per share.
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•Diluted earnings per share increased 18.2% to$3.24 per share.
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Macroeconomic and Geopolitical Factors. We continue to be exposed to risks from evolving trade policies,
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Macroeconomic and Geopolitical Factors. We are subject to various macroeconomic and geopolitical factors, the
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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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current and proposed tariff regimes, as well as the amount and timing of future refunds of previously paid IEEPA
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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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tariffs remain uncertain. We continue to pursue mitigation strategies but 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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incremental tariff costs we expect to incur during thecurrent fiscal year, excluding any future IEEPA tariff refunds.
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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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We previously paid an aggregate of approximately$119,000 in gross IEEPA tariffs. During thethree and six months
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accommodations provided under cost-sharing arrangements with ourindependent manufacturers, income taxes
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arrangements with ourindependent manufacturers and other relevant factors. Subsequent to September 30, 2026,
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to the purchase obligations disclosed in Note 8, “Commitments and Contingencies,” of our consolidated financial
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“Commitments and Contingencies,” of ourcondensed consolidated financial statements in Part I, Item 1 within this
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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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Refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”
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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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of our 2026 Annual Report for further trends and uncertainties. Refer to Part I, Item 1A, “Risk Factors,” of our 2026
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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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Annual Report for detailed information on the risks and uncertainties that may cause our actual results to differ
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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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As of September 30, 2026, ourthree reportable operating segments include the worldwide operations of the HOKA
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UGG brand, and Other brands.
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brand, UGG brand, and Other brands.
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elevated marketing campaigns, and investments in brand experiences, coupled with strategic marketplace
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elevated marketing campaigns, and investments in brand experiences, coupled with strategic marketplace presence
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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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have fueled both domestic and international sales growth of the HOKA brand, which has quickly become a leading
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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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brand within run and outdoor specialty wholesale accounts and is growing across its global marketplace. The HOKA
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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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brand’s product line includes running, trail, hiking, fitness, and lifestyle footwear offerings, as well as apparel and
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The Other brands reportable operating segment includes financial results of brands for which standalone operations
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Other brands reportable operating segment includes financial results of brands for which standalone operations
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have been phased out in theprior fiscal year as described in the section titled “Reportable Operating Segment
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have been phased out during theprior fiscal year.
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we may adjust prior reporting periods to conform to current period accounting policies. The information presented
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we may adjust prior reporting periods toconform to current period reporting methodologies. The information
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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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presented on a constant currency basis, as we present such information, may not necessarily be comparable to
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information presented by other companies, and may not be appropriate measures for comparing our performance
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similarly titled information presented by other companies, and may not be appropriate measures for comparing our
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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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performance relative to other companies. Constant currency measures should not be considered in isolation, or as
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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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an alternative to US dollar measures that reflect current period foreign currency exchange rates or to other financial
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measures presented in accordance with US GAAP.
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or operating measures presented in accordance with US GAAP.
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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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Three Months Ended September 30, 2026, Comparedto Three Months Ended September 30, 2025. Results of
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Koolaburra brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our
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brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” ofour consolidated
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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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lower net sales for Other brands. Drivers of significant changes in net sales, compared to theprior period, were as
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•Net sales of the UGG brand increased primarily due to higher global net sales largely balanced
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•Net sales of the UGG brand increased primarily due to higher global net sales in the wholesale
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•On a constant currency basis, net sales increased by 4.8% compared to theprior period.
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•On a constant currency basis, net sales increased by 2.8%, compared to theprior 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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•Comparable DTC channel net sales for the 13 weeks ended September 27, 2026, decreased by
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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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•We experienceda decrease of 0.9% in the total volume of units sold to 22,500 from 22,700,
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rounded units. Theprior period includes units sold by brands phased out in theprior fiscal year.
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rounded units. Theprior period includes units sold by brands phased out during theprior fiscal year.
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Gross Profit. Gross margin increased to 56.4% from 55.8% compared to theprior period, primarily due tofavorable
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Gross Profit. Gross margin increased to 60.5% from 56.2%, compared to theprior period, primarily due to benefits
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•Increased advertising, marketing, and promotion expenses of approximately$10,300, primarily due
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•Increased advertising, marketing, and promotion expenses of approximately$19,500, primarily for
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brand awareness and market share gains, highlight new product categories, and provide localized
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new product categories, and provide localized marketing.
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brand expenses. The increase in payroll and related costs was comprised of approximately$11,100
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payroll and related costs was comprised of approximately$5,200 of expenses specific to our
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in unallocated enterprise and shared brand expenses. Refer to Note 10, “Reportable Operating Segments,” of ourcondensed
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in unallocated enterprise and shared brand expenses. Refer to Note 12, “Reportable Operating Segments,” of our condensed
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•Net sales of the HOKA brand increased primarily due to higher international net sales across both
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•Net sales of Other brands decreased prim arily due to the phase out of standalone operations of the
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Koolaburra brand in theprior fiscal year.
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the HOKA brand and UGG brand todrive global brand awareness and market share gains, highlight
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compared to theprior period, were as follows:
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Net Income. Theincrease in net income, compared to theprior period, was dueto higher operating margins on
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higher net sales. Net income per share increased, compared to theprior period, dueto higher net income andlower
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Total Other Comprehensive Income, Net of Tax. Thedecrease in total other comprehensive income, net of tax,
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compared to theprior period, wasprimarily due to higher unrealized losses on derivative contracts, partially offset
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by higher foreign currency translation gains relating to changes in the net asset position against Asian foreign
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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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Total net sales increased primarily due to higher net sales for the HOKA brand and UGG brand, partially offset by
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lower net sales for Other brands. Drivers of significant changes in net sales, compared to theprior period, were as
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•Net sales of the UGG brand increased primarily due to higher global net sales in the wholesale
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•On a constant currency basis, net sales increased by 3.6% compared to theprior period.
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•We experienceda decrease of 1.1% in the total volume of units sold to 37,000 from 37,400,
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compared to theprior period. Units sold include all categories such as footwear, apparel,
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accessories, home goods, and care kits across all brands. Percentages may not calculate on
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rounded units. Theprior period includes units sold by brands phased out during theprior fiscal year.
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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 advertising, marketing, and promotion expenses of approximately$29,800, primarily for
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the HOKA brand and UGG brand to drive global brand awareness and market share gains, highlight
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new product categories, and provide localized marketing.
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payroll and related costs was comprised of approximately$16,300 of expenses specific to our
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Income from Operations. Income (loss) from operations byreportable operating segment was as follows:
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(2) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, the costs are recorded
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in unallocated enterprise and shared brand expenses. Refer to Note 12, “Reportable Operating Segments,” of our condensed
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consolidated financial statements in Part I, Item 1 within this Quarterly Report for further information.
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compared to theprior period, were as follows:
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Total Other Income, Net. The decrease in total other income, net, compared to theprior period, wasprimarily due to
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Income Tax Expense. Income tax expense and our effective income tax rate were as follows:
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The netincrease in our effective income tax rate, compared to theprior period, was primarily due tonon-recurring
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weighted-average common shares outstanding driven bystock repurchases.
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Refer to Note 5, “Revolving Credit Facilities,” of ourcondensed consolidated financial statements in Part I, Item 1
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Operations,” of our 2026 Annual Report.
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Koolaburra brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our
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of our 2026 Annual Report for further information regarding our cash repatriation strategy.
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•Primary Credit Facility. During thethree months ended June 30, 2026, we madeno borrowings or
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condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report for further information on
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Part IV of our 2026 Annual Report.
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financial statements in Part I, Item 1 within this Quarterly Report, for further discussion of our significant accounting