HOKA's 2026 Q1 Earnings Call: Unpacking Contradictions in International Growth, U.S. DTC Performance, and Inventory Strategy

HOKA's international growth and market dynamics, HOKA's U.S. DTC performance and growth projections, HOKA's inventory management and distribution strategy, inventory management and market cleanliness, international growth expectations are the key contradictions discussed in Deckers Outdoor Corporation's latest 2026Q1 earnings call.



Strong Financial Performance:
- Deckers Outdoor Corporation reported revenue of $965 million for Q1 FY2026, up 17% year-on-year.
- Diluted earnings per share increased by 24% to $0.93.
- Growth in revenue was driven by the strong performance of the HOKA and UGG brands, particularly in international markets, despite a challenging U.S. consumer environment.

HOKA Brand Performance:
- HOKA's global revenue reached $653 million in Q1 FY2026, up 20% year-on-year.
- The brand's performance was strong in international markets, particularly in EMEA and APAC regions.
- The growth was supported by international market expansion and strategic product updates, such as the Bondi and Clifton franchises.

UGG Brand Growth:
- UGG's global revenue increased by 19% year-on-year to $265 million in Q1 FY2026.
- Growth was driven by strong international demand and successful product introductions like the PeakMod style.
- The brand's growth is attributed to its focus on relevance during transitional periods and effective brand storytelling.

Gross Margin and Promotional Activity:
- Gross margin for Q1 FY2026 was 55.8%, down 110 basis points from the previous year.
- Increased promotional activity was a significant factor affecting gross margin, with planned promotional levels higher compared to the prior year.
- The company is strategic about implementing price increases to offset tariff-related cost pressures, expecting some recovery in gross margin over time.