Deckers Outdoor Corporation

Total company revenue was $1.02 billion, up 5.7% year over year. Diluted EPS was $0.94 versus $0.93 last year. Gross margin was 56.4%, up 60 basis points from 55.8%. HOKA revenue increased 8% to $704 million, and UGG revenue increased 5% to $278 million. SG&A was $420 million, up 13% from $373 million. The company repurchased approximately $338 million of stock at an average price of $103.79, leaving about $4.7 billion remaining under the authorization. Inventory was $808 million, down 5% year over year, and cash and equivalents were $1.6 billion with no outstanding borrowings. For FY27, Deckers now expects revenue of $5.86 billion to $5.91 billion, gross margin slightly better than 56.5%, operating margin slightly better than 21.5%, and diluted EPS of $7.35 to $7.50. For Q2, it expects consolidated revenue up approximately 5% and EPS of $1.73 to $1.78; HOKA is expected to grow high single digits, UGG mid-single digits, and other brands to be down about 50%.

Stefano Caroti said the quarter validated Deckers’ strategy of innovation, disciplined supply, and maintaining a pull model with strong full-price demand. He emphasized that consumer response to new HOKA and UGG products is broad-based across regions and channels, and that the company is building a more differentiated assortment for the second half and beyond. His tone was confident but measured, repeatedly noting that the consumer backdrop remains pressured even as Deckers believes its brands are gaining share.

Steve Fasching said the quarter beat expectations mainly through gross margin strength, with Q1 gross margin at 56.4% and help from full-price selling, channel and brand mix, FX, and better closeout management, partly offset by a tariff headwind. He noted SG&A was $420 million, up 13%, due to prior-year hires, marketing, rent, technology, and FX remeasurement, while cash was $1.6 billion, inventory was down 5%, and the company had no debt. On capital allocation, he highlighted $338 million of buybacks in the quarter and said FY27 EPS guidance still assumes repurchases equal to about 80% of projected free cash flow; he also said the tariff assumption was raised to 12.5% from 10% and that no refund benefit is included in guidance.

Analysts pressed on HOKA’s growth runway, competition, Lifestyle expansion, tariffs, and whether the year is being pulled forward by demand or simply shifted by logistics. Management said HOKA is continuing to gain or hold share in performance run and trail, that new launches like Clifton Pro, Clifton 11, Speedgoat 7 and Mach Pro are resonating, and that second-half growth will accelerate mainly because wholesale and distributor shipments are shifting later this year versus last year. On tariffs, management said refunds from previously paid tariffs are not included in guidance, any recovery would likely come over time and be shared partly with partners, and the higher 12.5% go-forward tariff assumption is now embedded in the outlook.