Deckers Brands Q1 FY26 Revenue Up 17% to $965mln, EPS Increases 24%.

• Deckers Brands Q1 FY26 revenue up 17% to $965mln • Q1 FY26 diluted EPS increased 24% to $0.93 • HOKA and UGG outperformed expectations • Robust growth driven by global footwear and apparel market • Company confident in its brands despite uncertainty in global trade environment

Deckers Brands (NYSE: DECK), a global leader in footwear, apparel, and accessories, has reported robust financial results for the first quarter of fiscal year 2026. The company's net sales increased by 16.9% to $964.5 million, compared to $825.3 million in the same period last year. This growth was driven primarily by the strong performance of the HOKA and UGG brands, which saw net sales increases of 19.8% and 18.9%, respectively. Meanwhile, other brands saw a decrease in net sales by 19.0% to $46.3 million.

The company's gross margin was 55.8%, down slightly from 56.9% last year, while SG&A expenses increased to $372.6 million from $337.2 million. Operating income for the quarter was $165.3 million, up from $132.8 million in the same period last year. Diluted earnings per share (EPS) increased by 24% to $0.93.

Stefano Caroti, President and Chief Executive Officer, commented on the results, stating, "HOKA and UGG outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026. Though uncertainty remains elevated in the global trade environment, our confidence in our brands has not changed, and the long-term opportunities ahead are significant. We will lean on the fundamental strengths of our powerful operating model as we continue executing our strategy."

The company also provided guidance for the second quarter of fiscal year 2026, expecting net sales to be in the range of $1.38 billion to $1.42 billion, with diluted EPS expected to be between $1.50 and $1.55. However, the company noted that these projections are subject to significant risks and uncertainties, including changes in macroeconomic conditions, global trade policy, geopolitical tensions, and supply chain disruptions.

Deckers Brands has a strong balance sheet, with cash and cash equivalents of $1.720 billion as of June 30, 2025, up from $1.438 billion a year earlier. The company has no outstanding borrowings and has approximately $2.4 billion remaining under its stock repurchase authorization.

Despite the uncertainty in the global trade environment, Deckers Brands remains confident in its brands and the long-term opportunities ahead. The company's robust financial performance in Q1 FY26 is a testament to its strong operating model and the demand for its products in the global footwear and apparel market.

References:
[1] https://www.marketscreener.com/news/deckers-brands-reports-first-quarter-fiscal-year-2026-financial-results-ce7c5fdadb80f72d