Deckers Outdoor 2026 Q1 Earnings Beats Expectations as Net Income Jumps 20.4%

Deckers Outdoor (DECK) reported its fiscal 2026 Q1 earnings on Jul 31st, 2025. Deckers Outdoor's performance in Q1 2026 exceeded expectations with revenue hitting $964.54 million, surpassing analyst estimates. This marks a notable improvement over the previous year's Q1 revenue of $825.35 million. The company's guidance for fiscal Q2 2026 projects net sales between $1.38 billion and $1.42 billion, with anticipated earnings per share ranging from $1.50 to $1.55. Despite potential risks and uncertainties, management's outlook remains positive.

Revenue

Earnings/Net Income
Deckers Outdoor's EPS rose 22.4% to $0.93 in 2026 Q1 from $0.76 in 2025 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $139.20 million in 2026 Q1, marking 20.4% growth from $115.63 million in 2025 Q1. Remarkably, in 2026 Q1, the company set a new record high for fiscal Q1 net income, the highest in over 20 years. The EPS performance was impressive, reinforcing positive investor sentiment.

Post-Earnings Price Action Review
The strategy of buying DECK when revenues miss and holding for 30 days has delivered substantial returns, achieving a remarkable 147.95% return, which significantly outperformed the benchmark return of 85.57%. The strategy's excess return was 62.38%, showcasing robust growth potential, while achieving a 20.07% compound annual growth rate (CAGR). Despite these high returns, the strategy comes with notable volatility and risk, evidenced by a maximum drawdown of 42.08%. This suggests that while the strategy has potential for high rewards, investors should be cautious of the associated risks. Overall, this approach has proven successful but requires careful risk management.

CEO Commentary
“HOKA and UGG outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026,” said Stefano Caroti, President and Chief Executive Officer. He highlighted that despite elevated uncertainty in the global trade environment, confidence in their brands remains unchanged, emphasizing significant long-term opportunities ahead. Caroti expressed reliance on the company’s strong operating model and ongoing execution of their strategic priorities, showcasing optimism about their growth trajectory.

Guidance
For the second quarter fiscal 2026, Deckers Brands expects net sales to be in the range of $1.38 billion to $1.42 billion, with diluted earnings per share anticipated between $1.50 and $1.55. The guidance reflects management's current outlook and acknowledges risks and uncertainties impacting future results.

Additional News
Deckers Outdoor has recently experienced significant stock fluctuations due to operational decisions. In May 2025, the company announced its decision not to provide annual guidance, citing macroeconomic uncertainties brought on by global trade policies. This decision led to a sharp decline in stock price, emphasizing the sensitivity of investors to guidance changes. Additionally, Deckers Outdoor has focused on expanding its brand presence internationally, with strategic initiatives in China and Europe showing promising results. The company is leveraging innovative store concepts and expanding direct networks to bolster brand visibility and sales momentum, particularly in high-growth regions. These moves reflect Deckers' strategic adaptation to market challenges and opportunities.