Deckers Outdoor Q2 earnings rise 16.8% to $313M
Tariff refunds reduced cost of sales, while receivables and inventory changes contributed to $9.3 million of six-month operating cash use.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Deckers Outdoor Corporation (DECK) reported second-quarter net sales of $1.481 billion, up 3.5% year over year, and net income of $313.1 million, up 16.8%. Diluted earnings per share were $2.31 versus $1.82; operating income rose 19.3% to $389.5 million. Gross margin was 60.5%, compared with 56.2%.
HOKA sales grew 6.8% to $677.2 million and UGG sales 3.5% to $786.4 million, while Other brands declined 54.3% to $17.0 million. Wholesale sales rose 5.5%, while direct-to-consumer sales fell 1.8%. About $46.0 million of IEEPA tariff net refunds reduced cost of sales, and about $3.0 million of related interest was recorded as interest income. Management also cited softer domestic demand and a temporary European fulfillment disruption that constrained shipments.
For the six months ended September 30, 2026, operating activities used $9.3 million, versus $44.2 million provided in the prior-year period, with receivables and inventory changes using cash. Deckers repurchased 6,454,175 shares for $637.5 million during the six months. Through October 8, total tariff net refunds received were about $87.9 million, with associated interest of about $4.7 million, to be recognized in the third fiscal quarter. Cash was $1,209.722 million at September 30, and $499.412 million was available under the $500 million revolving facility.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet income increased 16.8% to $313.1 million in Q2.
- Moderate pointOperating income increased 19.3% to $389.5 million in Q2.
Negative
- Moderate pointSix-month operating cash flow was $9.3 million used, versus $44.2 million provided.
Filing Explained
At September 30, Deckers’ $4,412,139 thousand buyback authorization was uncommitted, and unreceived tariff refunds were not recognized.
Form 10-Q is an unaudited quarterly report with interim financial statements and updates on risks and liquidity. At
After September 30 and through
An August amendment extended the
Key Figures
Net sales: $1.481 billion
Net income: $313.1 million
Diluted earnings per share: $2.31 per share
+4 more
7 metrics
Net sales
$1.481 billion
Three months ended September 30, 2026; up 3.5% year over year
Net income
$313.1 million
Three months ended September 30, 2026; up 16.8% year over year
Diluted earnings per share
$2.31 per share
Three months ended September 30, 2026, versus $1.82 in the prior-year quarter
Gross margin
60.5%
Three months ended September 30, 2026, versus 56.2% in the prior-year quarter
IEEPA tariff net refunds
Approximately $46.0 million
Recorded as a reduction to cost of sales in the three and six months ended September 30, 2026
Operating cash flow
$9.3 million used
Six months ended September 30, 2026, versus $44.2 million provided in the prior-year period
Share repurchases
$637.5 million
Six months ended September 30, 2026
Key Terms
IEEPA tariff net refunds, Direct-to-Consumer, constant currency, cash flow hedges, +1 more
5 terms
IEEPA tariff net refunds regulatory
"recorded approximately $46,000 of IEEPA tariff net refunds"
Direct-to-Consumer financial
"Direct-to-Consumer (DTC) channel"
A direct-to-consumer (DTC) model is when a company sells its products or services straight to customers, skipping middlemen like retailers or wholesalers. For investors, DTC matters because it can mean higher profit margins, closer customer relationships and faster feedback—like a baker who sells directly from the shop instead of through a grocery chain—while also exposing the business to costs for marketing, customer support and logistics that affect growth and profitability.
constant currency financial
"On a constant currency basis, net sales increased"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
cash flow hedges financial
"unrealized gains on derivative contracts recorded in accumulated other comprehensive loss"
A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.
Primary Credit Facility financial
"provides for a $500,000 unsecured revolving credit facility"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were DECK’s second-quarter sales and net income?
DECK reported net sales of $1.481 billion and net income of $313.1 million for the three months ended September 30, 2026. Net sales were up 3.5% and net income was up 16.8% from the prior-year quarter.
How much in IEEPA tariff refund claims had DECK submitted?
As of September 30, 2026, the company had submitted approximately $106 million in claims through CBP’s CAPE Phase 2 administrative refund process and was evaluating approximately $13 million in additional claims that may qualify for subsequent phases. It had previously paid approximately $119 million in gross IEEPA tariffs.
How much was available under DECK’s revolving credit facility?
As of September 30, 2026, $499.412 million was available under the $500 million unsecured Primary Credit Facility. The company had no outstanding balance and had $588,000 in outstanding letters of credit under the facility.
AI-generated analysis. How Rhea-AI works. Not financial advice.
See more from StockTitan in Google Search and AI answers.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One) | |
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the Quarterly Period Ended September 30, 2026
OR
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission File Number: 001-36436
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) (Zip Code)
(805 ) 967-7611
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting
company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of the close of business on October 8, 2026, the number of outstanding shares of the registrant’s common stock, par value
$0.01 per share, was 133,479,987 .
Table of Contents 1
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
Page | ||
Cautionary Note Regarding Forward-Looking Statements | 2 | |
PART I - Financial Information | ||
Item 1. | Financial Statements | |
Condensed Consolidated Balance Sheets (Unaudited) | 4 | |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | 5 | |
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) | 6 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) | 8 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | 10 | |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 23 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 35 |
Item 4. | Controls and Procedures | 36 |
PART II - Other Information | ||
Item 1. | Legal Proceedings | 37 |
Item 1A. | Risk Factors | 37 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 38 |
Item 3. | Defaults Upon Senior Securities | * |
Item 4. | Mine Safety Disclosures | * |
Item 5. | Other Information | 39 |
Item 6. | Exhibits | 40 |
Signatures | 41 | |
*Not applicable. | ||
Table of Contents 2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q for our second fiscal quarter ended September 30, 2026 (Quarterly Report), and the information and
documents incorporated by reference within this Quarterly Report, contain “forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act),
which statements are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other
than statements of historical fact contained in, or incorporated by reference within, this Quarterly Report. We have attempted to identify forward-
looking statements by using words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,”
“should,” “will,” or “would,” and similar expressions or the negative of these expressions. Specifically, this Quarterly Report, and the information
and documents incorporated by reference within this Quarterly Report contain forward-looking statements relating to, among other things:
•global geopolitical conflicts, instability, and uncertainty, including the resulting impact on our supply chain;
•United States (US) and international trade policies, tariffs and retaliatory measures, including the impact of tariffs, the
amount, timing, and realization of certain tariff refunds, and the net impact of such tariff refunds, after cost-sharing
arrangements and other relevant factors, on our results of operations and liquidity;
•changes in consumer preferences and the purchasing behavior of wholesale partners and consumers, including
shifts in technology, impacting our brands and products, and the footwear and fashion industries;
•global economic trends, including foreign currency exchange rate fluctuations and the effectiveness of our hedging
strategies, changes in interest rates, inflationary pressures, commodity price volatility, rising transportation costs, and
recessionary concerns;
•the ability to effectively compete in a highly competitive footwear, apparel, and accessories industry;
•the operational challenges faced by our warehouses and distribution centers (DCs), wholesale partners, global third-
party logistics providers (3PLs), and third-party carriers, including those arising from changes in 3PLs and other
distribution network initiatives, global supply chain disruptions, labor shortages, and logistics constraints;
•availability of materials and manufacturing capacity, the reliability of overseas production and storage, and the
geographic concentration of manufacturing operations;
•expansion of our brands, product offerings, and investments in our distribution facilities, e-commerce websites, and
retail store footprint;
•our business, operating, investing, capital allocation, marketing, and financing plans and strategies;
•changes to our product distribution strategies, including product allocation and segmentation strategies;
•trends, seasonality, and weather impacting the demand for our products;
•changes to the geographic and seasonal mix of our brands and products;
•the impact of our efforts to continue to advance sustainable and socially conscious business operations, and our
ability to meet the expectations of our investors and other stakeholders with respect to our environmental, social, and
governance practices;
•the effects of climate change, natural disasters, and public health issues, and the resulting impact on our business
and our customers, consumers, suppliers, and business partners;
•security breach or other disruption to our information technology (IT) systems, or those of our vendors;
•our ability to effectively utilize and implement technological advancements, including artificial intelligence, the impact
of artificial intelligence on our business, and risks associated with third-party service providers and interconnected
systems;
•the outcomes of legal proceedings, including the impact they may have on our business and intellectual property
rights;
•our interpretation of applicable global tax regulations and changes in global tax laws and audits that may impact our
tax liability and effective tax rates;
•our cash repatriation strategy regarding earnings of non-US subsidiaries and the resulting tax impacts; and
•the value of long-lived assets and potential write-downs or impairment charges.
Forward-looking statements represent management’s current expectations and predictions about trends affecting our business and
industry and are based on information available at the time such statements are made. Although we do not make forward-looking statements
unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements
involve numerous known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements
to be materially different from any future results, performance or achievements predicted, assumed, or implied by the forward-looking
statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these
forward-looking statements are described in Part II, Item 1A, “Risk Factors,” and Part I, Item 2, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” within this Quarterly Report, as well as in our other filings with the Securities and Exchange
Commission (SEC), which are available free of charge on the SEC’s website at www.sec.gov and our website at ir.deckers.com. You should
read this Quarterly Report, including the information and documents incorporated by reference herein, in its entirety and with the understanding
that our actual future results may be materially different from the results expressed or implied by these forward-looking statements. Moreover,
new risks and uncertainties emerge occasionally, and it is not possible for management to predict all risks and uncertainties, nor can we assess
the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual future results to be
materially different from any results expressed or implied by any forward-looking statements. Except as required by applicable law or the listing
rules of the New York Stock Exchange, we expressly disclaim any intent or obligation to update any forward-looking statements. We qualify all
our forward-looking statements with these cautionary statements.
Table of Contents 3
PART I. FINANCIAL INFORMATION
References within this Quarterly Report to “Deckers,” “we,” “our,” “us,” “management,” or the “Company” refer to
Deckers Outdoor Corporation, together with its consolidated subsidiaries. HOKA® (HOKA), UGG® (UGG), and
Teva® (Teva) are some of our trademarks. Other trademarks or trade names appearing elsewhere within this
Quarterly Report are the property of their respective owners. The trademarks and trade names within this Quarterly
Report are referred to without the ® and ™ symbols, but such references should not be construed as any indication
that their respective owners will not assert their rights to the fullest extent under applicable law.
Unless otherwise indicated, all figures herein are expressed in thousands, except for per share data. References to
“domestic” refer to our business and operations in the US.
Table of Contents 4
ITEM 1. FINANCIAL STATEMENTS |
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(amounts in thousands, except par value)
September 30, 2026 | March 31, 2026 | ||
ASSETS | (AUDITED) | ||
Cash and cash equivalents | $ | $ | |
Trade accounts receivable, net of allowances ($ September 30, 2026, and March 31, 2026, respectively) | |||
Inventories | |||
Prepaid expenses | |||
Other current assets | |||
Income tax receivable | |||
Total current assets | |||
Property and equipment, net of accumulated depreciation ($ $ | |||
Operating lease assets | |||
Goodwill | |||
Other intangible assets, net of accumulated amortization ($ as of September 30, 2026, and March 31, 2026, respectively) | |||
Deferred tax assets, net | |||
Other assets | |||
Total assets | $ | $ | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Trade accounts payable | $ | $ | |
Accrued payroll | |||
Operating lease liabilities (Note 6) | |||
Other accrued expenses | |||
Income tax payable | |||
Value added tax payable | |||
Total current liabilities | |||
Long-term operating lease liabilities (Note 6) | |||
Income tax liability | |||
Other long-term liabilities | |||
Total long-term liabilities | |||
Commitments and contingencies (Note 7) | |||
Stockholders’ equity | |||
Common stock ($ 2026, and March 31, 2026, respectively) | |||
Additional paid-in capital | |||
Retained earnings | |||
Accumulated other comprehensive loss (Note 10) | ( | ( | |
Total stockholders’ equity | |||
Total liabilities and stockholders’ equity | $ | $ |
See accompanying notes to the condensed consolidated financial statements.
Table of Contents 5
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(amounts in thousands, except per share data)
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net sales (Note 2 and Note 12) | $ | $ | $ | $ | |||
Cost of sales | |||||||
Gross profit | |||||||
Selling, general, and administrative expenses (Note 12) | |||||||
Income from operations (Note 12) | |||||||
Interest income | ( | ( | ( | ( | |||
Interest expense | |||||||
Other income, net | ( | ( | ( | ( | |||
Total other income, net | ( | ( | ( | ( | |||
Income before income taxes | |||||||
Income tax expense (Note 4) | |||||||
Net income | |||||||
Other comprehensive income, net of tax | |||||||
Unrealized (loss) gain on cash flow hedges | ( | ( | |||||
Foreign currency translation gain (loss) | ( | ||||||
Total other comprehensive income, net of tax | |||||||
Comprehensive income | $ | $ | $ | $ | |||
Net income per share | |||||||
Basic | $ | $ | $ | $ | |||
Diluted | $ | $ | $ | $ | |||
Weighted-average common shares outstanding (Note 11) | |||||||
Basic | |||||||
Diluted | |||||||
See accompanying notes to the condensed consolidated financial statements.
Table of Contents 6
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
(amounts in thousands)
Six Months Ended September 30, 2026 | |||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||
Shares | Amount | ||||||||||
Balance, March 31, 2026 | $ | $ | $ | $( | $ | ||||||
Stock-based compensation | — | — | — | ||||||||
Shares issued upon vesting | — | — | — | — | — | ||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||
Repurchases of common stock (Note 10) | ( | ( | — | ( | — | ( | |||||
Excise taxes related to repurchases of common stock | — | — | — | ( | — | ( | |||||
Net income | — | — | — | — | |||||||
Total other comprehensive income | — | — | — | — | |||||||
Balance, June 30, 2026 | ( | ||||||||||
Stock-based compensation | — | — | — | ||||||||
Shares issued upon vesting | — | — | |||||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||
Repurchases of common stock (Note 10) | ( | ( | — | ( | — | ( | |||||
Excise taxes related to repurchases of common stock | — | — | — | ( | — | ( | |||||
Net income | — | — | — | — | |||||||
Total other comprehensive income | — | — | — | — | |||||||
Balance, September 30, 2026 | $ | $ | $ | $( | $ | ||||||
Table of Contents 7
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
(amounts in thousands)
Six Months Ended September 30, 2025 | |||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||
Shares | Amount | ||||||||||
Balance, March 31, 2025 | $ | $ | $ | $( | $ | ||||||
Stock-based compensation | — | — | — | ||||||||
Shares issued upon vesting | — | — | — | — | — | ||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||
Repurchases of common stock (Note 10) | ( | ( | — | ( | — | ( | |||||
Excise taxes related to repurchases of common stock | — | — | — | ( | — | ( | |||||
Net income | — | — | — | — | |||||||
Total other comprehensive loss | — | — | — | — | ( | ( | |||||
Balance, June 30, 2025 | ( | ||||||||||
Stock-based compensation | — | — | — | ||||||||
Shares issued upon vesting | — | — | |||||||||
Shares withheld for taxes | — | — | ( | — | — | ( | |||||
Repurchases of common stock (Note 10) | ( | ( | — | ( | — | ( | |||||
Excise taxes related to repurchases of common stock | — | — | — | ( | — | ( | |||||
Net income | — | — | — | — | |||||||
Total other comprehensive income | — | — | — | — | |||||||
Balance, September 30, 2025 | $ | $ | $ | $( | $ | ||||||
See accompanying notes to the condensed consolidated financial statements.
Table of Contents 8
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(amounts in thousands)
Six Months Ended September 30, | |||
2026 | 2025 | ||
OPERATING ACTIVITIES | |||
Net income | $ | $ | |
Reconciliation of net income to net cash (used in) provided by operating activities: | |||
Depreciation, amortization, and accretion | |||
Amortization on cloud computing arrangements | |||
Bad debt expense | |||
Deferred tax benefit | ( | ( | |
Stock-based compensation | |||
Loss on disposal of assets | |||
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | ( | ( | |
Inventories | ( | ( | |
Prepaid expenses and other current assets | ( | ( | |
Income tax receivable | ( | ||
Net operating lease assets and lease liabilities | ( | ||
Other assets | ( | ( | |
Trade accounts payable | |||
Other accrued expenses | ( | ( | |
Income tax payable | |||
Other long-term liabilities | |||
Net cash (used in) provided by operating activities | ( | ||
INVESTING ACTIVITIES | |||
Purchases of property and equipment | ( | ( | |
Net cash used in investing activities | ( | ( | |
FINANCING ACTIVITIES | |||
Deferred financing costs paid on revolving credit facilities | ( | ||
Proceeds from issuance of stock | |||
Repurchases of common stock | ( | ( | |
Cash paid for excise taxes related to repurchases of common stock | ( | ( | |
Cash paid for shares withheld for taxes | ( | ( | |
Net cash used in financing activities | ( | ( | |
Effect of foreign currency exchange rates on cash and cash equivalents | |||
Net change in cash and cash equivalents | ( | ( | |
Cash and cash equivalents at beginning of period | |||
Cash and cash equivalents at end of period | $ | $ | |
Table of Contents 9
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(amounts in thousands)
(continued)
Six Months Ended September 30, | |||
2026 | 2025 | ||
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Cash paid during the period | |||
Income taxes, net of refunds | $ | $ | |
Interest | |||
Operating leases | |||
Non-cash investing activities | |||
Changes in trade accounts payable and other accrued expenses for purchases of property and equipment | ( | ( | |
Accrued for asset retirement obligation assets related to leasehold improvements | |||
Non-cash financing activities | |||
Accrued excise taxes related to repurchases of common stock | |||
See accompanying notes to the condensed consolidated financial statements.
Table of Contents 10
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Note 1. General
The Company. Deckers Outdoor Corporation and its consolidated subsidiaries (collectively, the Company) is a
global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for
both everyday casual lifestyle use and high-performance activities. The Company markets its products primarily
under three proprietary brands: HOKA, UGG, and Teva.
The Company’s brands compete across the fashion and casual lifestyle, performance, running, and outdoor
markets. The Company sells its products through quality domestic and international retailers and international
distributors in its wholesale channel, and directly to global consumers through its Direct-to-Consumer (DTC)
channel, which is comprised of an e-commerce and retail store presence. Management seeks to differentiate the
Company’s brands and products by offering diverse lines that emphasize fashion, performance, authenticity,
functionality, quality, and comfort, and products tailored to a variety of activities, seasons, and demographic groups.
Independent third-party contractors manufacture all of the Company’s products (independent manufacturers).
thereto (referred to herein as condensed consolidated financial statements) as of September 30, 2026, and for the
three and six months ended September 30, 2026 (current period), and 2025 (prior period) are prepared in
accordance with generally accepted accounting principles in the US (US GAAP) for interim financial information
pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial
statements do not include all the information and disclosures required by US GAAP for annual financial statements
and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2026, is derived from
the Company’s audited consolidated financial statements. In the opinion of management, the condensed
consolidated financial statements include all normal and recurring entries necessary to fairly present the results of
the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or
other interim periods. The condensed consolidated financial statements should be read in conjunction with the
audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual
Report on Form 10-K for the fiscal year ended March 31, 2026 (prior fiscal year), which was filed with the SEC on
May 22, 2026 (2026 Annual Report).
wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
cash flows have been reclassified within net cash (used in) provided by operating activities and net cash used in
investing activities to conform to the current period presentation, which had no net effect on cash flows from
operating or investing activities.
include the worldwide operations of the HOKA brand, UGG brand, and Other brands (primarily consisting of the
Teva brand) (collectively, the Company’s reportable operating segments). Other brands reportable operating
segment includes historical results of brands for which standalone operations have been phased out during the prior
fiscal year as described in Note 1, “General,” within the section titled “Reportable Operating Segments” in the
Company’s consolidated financial statements in Part IV of the 2026 Annual Report.
Refer to Note 12, “Reportable Operating Segments,” for further information on the Company’s reportable operating
segments.
Table of Contents 11
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
with US GAAP requires management to make estimates and assumptions that affect the amounts reported.
Management bases these estimates and assumptions upon historical experience, existing and known
circumstances, authoritative accounting pronouncements, and other factors it believes to be reasonable. In addition,
management has considered the potential impact of macroeconomic and geopolitical factors on its business and
results of operations, including inflationary pressures, increased tariffs, tariff refunds received and the recoverability
of remaining tariff refund claims, rising supply chain costs, high interest rates, foreign currency exchange rate
volatility, escalating global conflicts, changes in discretionary spending, and recession risks. Although the full impact
of these factors, including the amount, timing, and realization of certain tariff refunds, is unknown, the Company
believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances
available as of the reporting date. However, actual results could differ materially from these estimates and
assumptions, which may result in material effects on the Company’s financial condition, results of operations, and
liquidity.
wholly owned foreign subsidiaries have various assets and liabilities, primarily cash, receivables, and payables,
which are denominated in currencies other than its functional currency. The Company remeasures these monetary
assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses
that are recorded in selling, general, and administrative (SG&A) expenses in the condensed consolidated
statements of comprehensive income as incurred. In addition, the Company translates assets and liabilities of
subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at the end of
the reporting period, which results in financial statement translation gains and losses recorded in other
comprehensive income or loss (OCI), net of tax, in the condensed consolidated statements of comprehensive
income.
Seasonality. A significant part of the UGG brand’s business has historically been seasonal, with the highest
percentage of net sales occurring in the third fiscal quarter, which has contributed to variation in results of
operations from quarter to quarter. However, as the HOKA brand’s net sales have increased as a percentage of
aggregate net sales, the impacts of seasonality have been partially mitigated as HOKA brand sales are generally
more evenly distributed throughout the fiscal year. However, quarterly results may fluctuate based on, among other
things, the timing of product launches, customer demand, inventory management decisions, and the timing of
product shipments, including impacts from changes in third-party logistics providers and other distribution network
initiatives. This trend is expected to continue. In addition, the Company has further mitigated the impacts of
seasonality by diversifying and expanding its year-round product offerings across its brands.
to recently issued Accounting Standards Updates (ASUs) relative to those disclosed in the 2026 Annual Report,
including the expected dates of adoption and impact on disclosures in the Company’s annual consolidated financial
statements and interim condensed consolidated financial statements.
Standard | Description | Impact on Adoption | ||
ASU 2025-05 - Measurement of Credit Losses for Accounts Receivable and Contract Assets | This ASU provides a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses on trade accounts receivable and contract assets. This ASU is effective on a prospective basis for fiscal years beginning after December 15, 2025. Early adoption is permitted. | This ASU was effective for the Company as of April 1, 2026, but the Company did not elect the practical expedient; as such, this ASU did not impact the Company’s interim condensed consolidated financial statements. |
Table of Contents 12
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Note 2. Revenue Recognition and Business Concentrations
Company’s disaggregation of net sales by reportable operating segments.
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Wholesale | $ | $ | $ | $ | |||
Direct-to-Consumer | |||||||
Total | $ | $ | $ | $ | |||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Domestic | $ | $ | $ | $ | |||
International | |||||||
Total | $ | $ | $ | $ | |||
refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded
in other current assets and the related refund liability is recorded in other accrued expenses in the condensed
consolidated balance sheets.
Sales Return Asset | Sales Return Liability | ||
Balance, March 31, 2026 | $ | $( | |
Net additions to sales return liability (1) | ( | ||
Actual returns | ( | ||
Balance, September 30, 2026 | $ | $( |
Sales Return Asset | Sales Return Liability | ||
Balance, March 31, 2025 | $ | $( | |
Net additions to sales return liability (1) | ( | ||
Actual returns | ( | ||
Balance, September 30, 2025 | $ | $( |
(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual
return rights and discretionary authorized returns.
Table of Contents 13
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
balance sheets and include loyalty programs and other deferred revenue.
Six Months Ended September 30, | |||
2026 | 2025 | ||
Beginning balance | $( | $( | |
Redemptions and expirations for loyalty certificates and points recognized in net sales | |||
Deferred revenue for loyalty points and certificates issued | ( | ( | |
Ending balance | $( | $( | |
Six Months Ended September 30, | |||
2026 | 2025 | ||
Beginning balance | $( | $( | |
Additions of customer cash payments | ( | ( | |
Revenue recognized | |||
Ending balance | $( | $( | |
Note 3. Fair Value Measurements
consolidated balance sheets, which are as follows:
As of | Measured Using | ||||||
September 30, 2026 | Level 1 | Level 2 | Level 3 | ||||
Assets: | |||||||
Cash equivalents: | |||||||
Money-market funds | $ | $ | $ | $ | |||
Other current assets: | |||||||
Designated Derivative Contracts asset | |||||||
Non-Designated Derivative Contracts asset | |||||||
Other assets: | |||||||
Non-qualified deferred compensation asset | |||||||
Total assets measured at fair value | $ | $ | $ | $ | |||
Liabilities: | |||||||
Other accrued expenses: | |||||||
Non-qualified deferred compensation liability | $( | $( | $ | $ | |||
Other long-term liabilities: | |||||||
Non-qualified deferred compensation liability | ( | ( | |||||
Total liabilities measured at fair value | $( | $( | $ | $ | |||
Table of Contents 14
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
As of | Measured Using | ||||||
March 31, 2026 | Level 1 | Level 2 | Level 3 | ||||
Assets: | |||||||
Cash equivalents: | |||||||
Money-market funds | $ | $ | $ | $ | |||
Other current assets: | |||||||
Designated Derivative Contracts asset | |||||||
Non-Designated Derivative Contracts asset | |||||||
Other assets: | |||||||
Non-qualified deferred compensation asset | |||||||
Total assets measured at fair value | $ | $ | $ | $ | |||
Liabilities: | |||||||
Other accrued expenses: | |||||||
Non-qualified deferred compensation liability | $( | $( | $ | $ | |||
Other long-term liabilities: | |||||||
Non-qualified deferred compensation liability | ( | ( | |||||
Total liabilities measured at fair value | $( | $( | $ | $ | |||
The fair value of Designated Derivative Contracts and Non-Designated Derivative Contracts is determined by using
quoted market prices of the same or similar instruments, including spot and forward currency exchange rates,
adjusted for counterparty exposure and the Company’s own credit risk, if any. Refer to Note 9, “Derivative
Instruments,” for further information on Designated Derivative Contracts and Non-Designated Derivative Contracts,
including the term definitions.
Note 4. Income Taxes
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Income tax expense | $ | $ | $ | $ | |||
Effective income tax rate | |||||||
The tax provisions during the three and six months ended September 30, 2026, and 2025, were computed using the
estimated effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the fiscal
year ending March 31, 2027 (current fiscal year), and prior fiscal year, respectively, and were adjusted for discrete
items that occurred within the periods presented above.
During the current period, the net changes in the effective income tax rate, compared to the prior period, were
primarily due to non-recurring discrete tax benefits for adjustments to income taxes payable from the prior period.
For the three months ended September 30, 2026, the change also reflected reductions in excess tax benefits for
stock-based compensation, while for the six months ended September 30, 2026, the discrete tax benefits were
offset by non-recurring discrete tax expenses related to changes in unrecognized tax benefits.
Table of Contents 15
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Note 5. Revolving Credit Facilities
Primary Credit Facility. In August 2026, Deckers Outdoor Corporation and certain of its consolidated subsidiaries
(collectively, the Borrowers) entered into the First Amendment to the Credit Agreement with Citibank, N.A.
(Citibank), as administrative agent, and the lenders party thereto (First Amendment), which amended the Credit
Agreement, dated December 19, 2022 (Credit Agreement), with Citibank, as administrative agent, and Comerica
Bank, as sole syndication agent (which role was assumed by Fifth Third Bank, as successor by merger with
Comerica Bank), and the lenders party thereto. The Credit Agreement, as amended by the First Amendment, is
referred to herein as the Amended Credit Agreement.
Borrowing Capacity. The Amended Credit Agreement provides for a $500,000 unsecured revolving credit facility
(Primary Credit Facility).
Maturity Date. The maturity date of the Amended Credit Agreement is August 27, 2031, which is the fifth anniversary
of the effective date of the First Amendment.
Interest Rates. Under the Amended Credit Agreement, at the Borrowers’ election, revolving loans issued under the
Primary Credit Facility will bear interest at the term Secured Overnight Financing Rate (SOFR), the adjusted Euro
InterBank Offered Rate (EURIBOR), the Sterling Overnight Index Average (SONIA), the term Canadian Overnight
Repo Rate Average (CORRA), or the adjusted Alternate Base Rate (ABR), in each case plus the applicable interest
rate margin.
The applicable interest rate margin is determined using a pricing grid based on the Company’s total net leverage
ratio and ranges from 1.00 % to 1.50 % per annum in the case of loans based on the SOFR, EURIBOR, SONIA, or
CORRA, and from 0.00 % to 0.50 % per annum in the case of loans based on ABR.
As of September 30, 2026, the applicable interest rates for borrowings in US dollars using the 1-month SOFR and
ABR are 4.91 % and 7.00 %, respectively.
Commitment Fees. Under the Amended Credit Agreement, the Borrowers are required to pay commitment fees of
between 0.10 % to 0.175 % per annum on the daily unused amount of the Primary Credit Facility, with the exact
commitment fee based on the Company’s total net leverage ratio.
Borrowing Activity. As of September 30, 2026, the Company has no outstanding balance, outstanding letters of
credit of $588 , and available borrowings of $499,412 under the Primary Credit Facility.
Deferred Financing Costs. In connection with the First Amendment, the Borrowers incurred various commitment,
arrangement, and other fees totaling $1,339 , which were primarily recorded in other assets in the condensed
consolidated balance sheets as of September 30, 2026. These costs will be amortized on a straight-line basis over
the term of the Amended Credit Agreement. Deferred financing costs associated with the Credit Agreement had an
immaterial remaining unamortized balance.
Debt Covenants. Under the Amended Credit Agreement, the total net leverage ratio financial covenant increased to
be no greater than 4.00 to 1.00. As of September 30, 2026, the Borrowers are in compliance with all financial
covenants under the Primary Credit Facility.
Except as described above, the material terms of the Company’s revolving credit facilities remain unchanged from
those previously disclosed in Note 6, “Revolving Credit Facilities,” in the Company’s consolidated financial
statements in Part IV of the 2026 Annual Report.
Table of Contents 16
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Note 6. Leases
The Company enters into operating lease contracts, which primarily relate to retail stores, showrooms, offices, and
distribution facilities. Supplemental information for amounts presented in the condensed consolidated statements of
cash flows related to operating leases was as follows:
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Non-cash operating activities (1) | |||||||
Operating lease assets obtained in exchange for lease liabilities | $ | $ | $ | $ | |||
Reductions to operating lease assets for reductions to lease liabilities | ( | ( | ( | ( | |||
(1) Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements, as well as adjustments for
tenant improvement allowances. Non-cash additions in the current period primarily reflect continued investments in the
Company’s global retail store footprint, while non-cash additions during the six months ended September 30, 2026, also
include amounts for a warehouse and DC lease extension, as well as investments in showrooms.
Note 7. Commitments and Contingencies
Purchase Obligations. There were no material changes outside the ordinary course of business during the six
months ended September 30, 2026, to the Company’s purchase obligations disclosed in Note 8, “Commitments and
Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2026 Annual Report.
Contingencies. Except as described below, there were no material changes outside the ordinary course of
business during the six months ended September 30, 2026, to the Company’s contingencies disclosed in Note 8,
“Commitments and Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2026
Annual Report.
Tariff Refunds. In February 2026, the US Supreme Court invalidated tariffs imposed under the International
Emergency Economic Powers Act (IEEPA). In March 2026, the US Court of International Trade directed US
Customs and Border Protection (CBP) to refund previously collected IEEPA tariffs. In April 2026, CBP released the
Consolidated Administration and Processing of Entries (CAPE) functionality to facilitate a phased approach to
process IEEPA tariff refunds.
The Company previously paid an aggregate of approximately $119,000 in gross IEEPA tariffs. As of September 30,
2026, the Company has submitted approximately $106,000 in claims under CBP’s CAPE Phase 2 administrative
refund process and is evaluating approximately $13,000 in additional claims that may qualify for subsequent
phases. The amount and timing of future refunds remain uncertain and subject to changes in CBP’s claims process
and further legal and regulatory developments.
Standards Codification Topic 450, Contingencies, which recognizes gains in the condensed consolidated financial
statements when realized or realizable. As of September 30, 2026, the Company has not recognized any receivable
During the three and six months ended September 30, 2026, the Company recorded approximately $46,000
IEEPA tariff net refunds as a reduction to cost of sales and approximately $3,000
income within the Company’s condensed consolidated statements of comprehensive income. The net effect of the
refunds reflects accommodations provided under cost-sharing arrangements with independent manufacturers and
other relevant factors.
Table of Contents 17
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Subsequent to September 30, 2026, through October 8, 2026, the Company received additional IEEPA tariff net
refunds that will be recognized in the Company’s condensed consolidated financial statements in the third fiscal
quarter, which, combined with the refunds previously received, total approximately $87,900 , plus associated interest
for a total of approximately $4,700 .
The Company has been named as a defendant in two purported consumer class actions relating to alleged tariff-
related pricing actions and governmental tariff reimbursements. The Company intends to defend these matters
vigorously.
Note 8. Stock-based Compensation
Stock Incentive Plans. The 2024 Stock Incentive Plan (2024 SIP) provides for the issuance of a variety of stock-
based compensation awards, including time-based restricted stock units (RSUs), performance-based restricted
stock units (PSUs), long-term incentive plan PSUs (LTIP PSUs), stock appreciation rights, stock bonuses, incentive
stock options (ISOs), and non-qualified stock options, to employees, directors, consultants, independent
contractors, and advisors. In September 2024, the 2024 SIP replaced the 2015 Stock Incentive Plan (2015 SIP).
Annual Stock Awards. The Company granted the following awards during the periods presented:
Six Months Ended September 30, | ||||||||
2026 | 2025 | |||||||
Award Type | Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | ||||
RSUs | $ | $ | ||||||
LTIP PSUs (1) | ||||||||
(1) The amounts reported reflect achievement of the target performance level under the terms of the applicable LTIP PSUs.
During the six months ended September 30, 2026, with the exception of the RSU and LTIP PSU awards
summarized above, no material additional awards were granted under the 2024 SIP.
Future unrecognized stock-based compensation for RSUs outstanding as of September 30, 2026, is $46,295 .
For the LTIP PSUs granted during the current fiscal year, prior fiscal year, and fiscal year ended March 31, 2025, the
Company expects to exceed the minimum threshold performance criteria based on the Company’s current long-
range forecast as of September 30, 2026. Future unrecognized stock-based compensation for all LTIP PSUs
Table of Contents 18
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Note 9. Derivative Instruments
currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales
(Designated Derivative Contracts). The Company also enters into derivative contracts that are not designated as
cash flow hedges, to offset a portion of anticipated gains and losses on certain intercompany balances until the
expected time of repayment (Non-Designated Derivative Contracts).
condensed consolidated balance sheets:
September 30, 2026 | |||||
Designated Derivative Contracts | Non-Designated Derivative Contracts | Total | |||
Notional value | $ | $ | $ | ||
Fair value recorded in other current assets | |||||
As of March 31, 2026, the Company has the following derivative contracts recorded at fair value in the condensed
consolidated balance sheets:
Designated Derivative Contracts | Non-Designated Derivative Contracts | Total | |||
Notional value | $ | $ | $ | ||
Fair value recorded in other current assets |
The maximum amount of loss the Company would incur if derivative counterparties failed completely to perform
according to the terms of the contracts is limited to the derivative gross fair value of contracts in asset positions. The
non-performance risk of the Company and its counterparties did not have a material impact on the fair value of its
derivative contracts. As of September 30, 2026, unrealized gains on derivative contracts recorded in accumulated
other comprehensive loss (AOCL) are expected to be reclassified into net sales within the next six months . Refer to
Note 10, “Stockholders’ Equity,” for further information on the components of AOCL.
the effect of Designated Derivative Contracts and the related income tax effects of unrealized gains or losses that
are recorded in OCI in the condensed consolidated statements of comprehensive income:
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Beginning balance | $ | $( | $ | $ | |||
Gain (loss) recorded in OCI | ( | ||||||
(Loss) gain reclassified into net sales | ( | ( | |||||
Income tax benefit (expense) in OCI | ( | ( | |||||
Ending balance | $ | $( | $ | $( | |||
Table of Contents 19
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Note 10. Stockholders’ Equity
Stock Repurchase Program (amounts in thousands, except share and per share data). The Company’s Board of
Directors (Board) has approved a stock repurchase program which authorizes the Company to repurchase shares
of its common stock in the open market or in privately negotiated transactions, subject to market conditions,
applicable legal requirements, and other factors (collectively, the stock repurchase program). The Board last
approved an additional authorization of $3,500,000 on May 20, 2026, to repurchase shares of the Company’s
common stock under the same conditions as the prior stock repurchase program. As of September 30, 2026, the
aggregate remaining authorization under the stock repurchase program is $4,412,139 .
The stock repurchase program does not obligate the Company to acquire any amount of common stock and may be
suspended at any time at the Company’s discretion. The credit agreements governing the Company’s revolving
credit facilities allow it to make stock repurchases under this program, so long as it does not exceed certain
leverage ratios. As of September 30, 2026, the Company has not exceeded the stated leverage ratios, and no
defaults have occurred under these credit agreements.
Six Months Ended September 30, | |||
2026 | 2025 | ||
Total number of shares repurchased (1) | |||
Weighted average price per share | $ | $ | |
Dollar value of shares repurchased (2) (3) | $ | $ | |
(1) All share repurchases were made pursuant to the stock repurchase program in open-market transactions.
(2) May not calculate on rounded amounts.
(3) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs.
Subsequent to September 30, 2026, through October 8, 2026, the Company repurchased 187,375 shares of its
common stock at a weighted average price of $80.05 per share for $15,000 . As of October 8, 2026, the Company
had $4,397,139 remaining authorized for repurchases under the stock repurchase program.
Accumulated Other Comprehensive Loss. The components within AOCL, net of tax, recorded in the condensed
consolidated balance sheets, are as follows:
September 30, 2026 | March 31, 2026 | ||
Unrealized gain on cash flow hedges | $ | $ | |
Cumulative foreign currency translation loss | ( | ( | |
Total | $( | $( |
Note 11. Basic and Diluted Shares
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Basic | |||||||
Dilutive effect of equity awards | |||||||
Diluted | |||||||
Table of Contents 20
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Excluded | |||||||
RSUs | |||||||
LTIP PSUs | |||||||
Deferred Non-Employee Director Equity Awards | |||||||
Employee Stock Purchase Plan | |||||||
one of the following: (1) the shares were antidilutive or (2) the necessary conditions had not been satisfied for the
shares to be deemed issuable based on the Company’s performance for the relevant performance period. The
number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to
these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to
be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and
may be materially lower than the number of shares presented, which could result in a lower dilutive effect.
Note 12. Reportable Operating Segments
There have been no changes to the Company’s reportable operating segments, the measure of segment profit or
loss, or the basis of measurement from those disclosed in Note 13, “Reportable Operating Segments,” of the
Company’s consolidated financial statements in Part IV of the 2026 Annual Report. Accordingly, information
reported to the Chief Operating Decision Maker (CODM), who is the Principal Executive Officer (PEO), continues to
be organized into three
The CODM continues to evaluate reportable operating segment performance and allocate resources based on net
sales, gross profit as a percentage of net sales (gross margin), and income from operations, which includes costs
directly attributable to each reportable operating segment that are regularly reviewed by the CODM. Segment
income from operations excludes unallocated enterprise and shared brand expenses, as well as total other income,
net. There are no inter-segment sales for any period presented.
The CODM does not regularly review total assets or capital expenditures by reportable operating segment.
comprehensive income, was as follows:
Three Months Ended September 30, 2026 | HOKA | UGG | Other brands | Total | |||
Net sales | $ | $ | $ | $ | |||
Less: Cost of sales | |||||||
Segment gross profit | |||||||
Segment gross margin |
Table of Contents 21
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Three Months Ended September 30, 2026 | HOKA | UGG | Other brands | Total | |||
Less: | |||||||
Payroll and related costs | |||||||
Advertising, marketing, and promotion expenses | |||||||
Rent and occupancy | |||||||
Depreciation and other related costs (1) | |||||||
Other segment items (2) | |||||||
Segment SG&A expenses | |||||||
Segment income from operations | $ | $ | $( | $ | |||
Segment operating margin (3) | ( |
Three Months Ended September 30, 2025 | HOKA | UGG | Other brands (4) | Total | |||
Net sales | $ | $ | $ | $ | |||
Less: Cost of sales | |||||||
Segment gross profit | |||||||
Segment gross margin | |||||||
Less: | |||||||
Payroll and related costs | |||||||
Advertising, marketing, and promotion expenses | |||||||
Rent and occupancy | |||||||
Depreciation and other related costs (1) | |||||||
Other segment items (2) | |||||||
Segment SG&A expenses | |||||||
Segment income from operations | $ | $ | $ | $ | |||
Segment operating margin (3) |
Six Months Ended September 30, 2026 | HOKA | UGG | Other brands | Total | |||
Net sales | $ | $ | $ | $ | |||
Less: Cost of sales | |||||||
Segment gross profit | |||||||
Segment gross margin | |||||||
Less: | |||||||
Payroll and related costs | |||||||
Advertising, marketing, and promotion expenses | |||||||
Rent and occupancy | |||||||
Depreciation and other related costs (1) | |||||||
Other segment items (2) | |||||||
Segment SG&A expenses | |||||||
Segment income from operations | $ | $ | $ | $ | |||
Segment operating margin (3) |
Table of Contents 22
DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended September 30, 2026, and 2025
(amounts in thousands, except per share data)
Six Months Ended September 30, 2025 | HOKA | UGG | Other brands (4) | Total | |||
Net sales | $ | $ | $ | $ | |||
Less: Cost of sales | |||||||
Segment gross profit | |||||||
Segment gross margin | |||||||
Less: | |||||||
Payroll and related costs | |||||||
Advertising, marketing, and promotion expenses | |||||||
Rent and occupancy | |||||||
Depreciation and other related costs (1) | |||||||
Other segment items (2) | |||||||
Segment SG&A expenses | |||||||
Segment income from operations | $ | $ | $ | $ | |||
Segment operating margin (3) |
(1) Depreciation and other related costs generally include depreciation of property and equipment, amortization and impairment of
intangible assets or other long-lived assets, accretion, loss on disposal of assets, and other miscellaneous costs.
(2) Other segment items are comprised of other SG&A expenses, which primarily include credit card fees, sales commissions, IT
expenses, materials and supplies, travel, certain 3PL service fees, and other miscellaneous expenses.
(3) Operating margin is defined as income from operations divided by net sales.
(4) Other brands reportable operating segment for the prior period includes financial results for the phase out of the Koolaburra
brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of the Company’s
consolidated financial statements in the 2026 Annual Report for further information.
comprehensive income was as follows:
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Segment income from operations | $ | $ | $ | $ | |||
Unallocated enterprise and shared brand expenses (1) | ( | ( | ( | ( | |||
Total other income, net | |||||||
Consolidated income before income taxes | $ | $ | $ | $ | |||
(1) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, they are recorded in
unallocated enterprise and shared brand expenses, which are costs that are managed centrally and not specific to any one
brand.
Table of Contents 23
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
The following discussion of our financial condition and results of operations should be read together with our
condensed consolidated financial statements and the related notes included in Part I, Item 1, “Financial
Statements,” within this Quarterly Report, and the audited consolidated financial statements included in Part II, Item
8, “Financial Statements and Supplementary Data,” of our 2026 Annual Report, filed with the SEC on May 22, 2026,
which is available free of charge on the SEC’s website at www.sec.gov and our website at ir.deckers.com.
Certain statements made in this section constitute “forward-looking statements,” which are subject to numerous
risks and uncertainties. Our actual results of operations may differ materially from those expressed or implied by
these forward-looking statements as a result of many factors, including those set forth in the section titled
“Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A, “Risk Factors,” within this Quarterly
Report.
Overview
We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily
under three proprietary brands: HOKA, UGG, and Teva.
Our brands compete across the fashion and casual lifestyle, performance, running, and outdoor markets. We
believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through
quality domestic and international retailers and international distributors in our wholesale channel, and directly to
global consumers through our DTC channel, which is comprised of an e-commerce and retail store presence. We
seek to differentiate our brands and products by offering diverse lines that emphasize fashion, performance,
authenticity, functionality, quality, and comfort, and products tailored to a variety of activities, seasons, and
demographic groups. All of our products are manufactured by independent manufacturers.
Financial Highlights
Consolidated financial performance highlights for the six months ended September 30, 2026, compared to the prior
period, were as follows:
•Net sales increased 4.4% to $2,500,085.
Brand
◦HOKA brand net sales increased 7.3% to $1,380,742.
◦UGG brand net sales increased 3.9% to $1,064,411.
◦Other brands’ net sales decreased 34.2% to $54,932.
Channel
◦Wholesale channel net sales increased 4.2% to $1,759,726.
◦DTC channel net sales increased 4.8% to $740,359.
Geography
◦Domestic net sales increased 0.9% to $1,353,270.
◦International net sales increased 8.7% to $1,146,815.
•Gross margin increased 280 basis points to 58.8%.
•SG&A expenses increased 8.9% to $925,518.
•Income from operations increased 10.8% to $544,757.
•Operating margin increased 130 basis points to 21.8%.
•Diluted earnings per share increased 18.2% to $3.24 per share.
Table of Contents 24
Trends and Uncertainties Impacting our Business and Industry
Macroeconomic and Geopolitical Factors. We are subject to various macroeconomic and geopolitical factors, the
most significant of which are described below:
Tariffs and Related Refunds. Evolving trade policies, including tariffs and other import restrictions, continue to
expose us to risks associated with our sourcing and manufacturing concentrations. The scope and duration of
current and proposed tariff regimes, as well as the amount and timing of future refunds of previously paid IEEPA
tariffs remain uncertain. We continue to pursue mitigation strategies but do not expect these efforts to fully offset
incremental tariff costs we expect to incur during the current fiscal year, excluding any future IEEPA tariff refunds.
We previously paid an aggregate of approximately $119,000 in gross IEEPA tariffs. During the three and six months
ended September 30, 2026, we recorded approximately $46,000 of IEEPA tariff net refunds as a reduction to cost of
sales and approximately $3,000 of related interest as interest income within our condensed consolidated statements
of comprehensive income. The net effect of the refunds reflects accommodations provided under cost-sharing
arrangements with our independent manufacturers and other relevant factors. Subsequent to September 30, 2026,
through October 8, 2026, we received additional IEEPA tariff net refunds that will be recognized in our condensed
consolidated financial statements in the third fiscal quarter which, combined with the refunds previously received,
total approximately $87,900, plus associated interest for a total of approximately $4,700. Refer to Note 7,
“Commitments and Contingencies,” of our condensed consolidated financial statements in Part I, Item 1 within this
Quarterly Report for further information on tariff refunds, including related accounting treatment.
European 3PL. During the current period, the transition to a new European 3PL resulted in temporary fulfillment
disruption during a peak shipping period, which affected certain wholesale and DTC channel shipments and
constrained our ability to fulfill demand in the region. This disruption impacted our results of operations, including
higher reserves for customer chargebacks and related estimates. We have implemented corrective actions with our
3PL partner to improve operational execution, restore service levels, and enhance visibility across the fulfillment
network. While performance improved near the end of the current period, we continue to monitor the transition
closely and potential residual impacts may persist in the near term.
Consumer Demand and Promotional Environment. During the current period, softer consumer demand and lower
traffic and conversion in the domestic marketplace adversely affected our domestic DTC channel net sales.
Consumers increasingly concentrated purchases around promotional periods as promotional intensity increased
across the marketplace, particularly in the athletic category, while we maintained full-price selling discipline.
Performance also reflected mixed results across certain product updates as we believe consumers in the current
macroeconomic environment are delaying purchasing until closer to the time of immediate need. These conditions
may persist in the near term and continue to impact our net sales and results of operations. In response, we are
focused on a measured approach to growth that prioritizes full-price selling, market share gains, and gross margin
preservation through premium brand positioning. While current consumer demand trends remain uneven,
particularly in portions of the domestic marketplace, we continue to believe our strategic focus on differentiated
product innovation, improving marketing effectiveness and digital execution, disciplined inventory and expense
management, and selective investment will position our brands to strengthen consumer engagement and support
full-price demand while protecting long-term brand health and profitability.
Refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”
of our 2026 Annual Report for further trends and uncertainties. Refer to Part I, Item 1A, “Risk Factors,” of our 2026
Annual Report for detailed information on the risks and uncertainties that may cause our actual results to differ
materially from our expectations.
Reportable Operating Segments Overview
As of September 30, 2026, our three reportable operating segments include the worldwide operations of the HOKA
brand, UGG brand, and Other brands.
HOKA Brand. The HOKA brand is an authentic premium line of year-round performance footwear, which offers
enhanced cushioning and inherent stability with minimal weight. Originally designed for ultra-runners, the brand now
appeals to world champions, tastemakers, and everyday athletes. Expansion into additional product categories,
elevated marketing campaigns, and investments in brand experiences, coupled with strategic marketplace presence
Table of Contents 25
have fueled both domestic and international sales growth of the HOKA brand, which has quickly become a leading
brand within run and outdoor specialty wholesale accounts and is growing across its global marketplace. The HOKA
brand’s product line includes running, trail, hiking, fitness, and lifestyle footwear offerings, as well as apparel and
accessories.
UGG Brand. The UGG brand is one of the most iconic and recognized footwear brands in our industry, which
highlights our successful track record of building niche brands into lifestyle and fashion market leaders. Born on the
California coast to warm surfers after they caught and rode the waves, we create iconic products and experiences
that are made for people to feel comfort, softness, warmth, and confidence. With loyal consumers around the world,
innovative products, and elevated storytelling, the UGG brand has proven to be a highly resilient consumer-focused
line of premium footwear, apparel, and accessories that has driven both domestic and international sales growth
with year-round product offerings that appeal to a growing global audience and a broad demographic.
Other Brands. Other brands consist primarily of the Teva brand. The Teva brand’s products are built for a range of
outdoor pursuits and include a variety of footwear options, from classic sandals and shoes to boots.
Other brands reportable operating segment includes financial results of brands for which standalone operations
have been phased out during the prior fiscal year.
Use of Non-GAAP Financial Measures
We disclose supplemental financial measures calculated and presented in accordance with US GAAP; however,
throughout this Quarterly Report, including within our condensed consolidated financial statements, we provide
certain financial information on a non-GAAP basis (non-GAAP financial measures). We provide non-GAAP financial
measures and information that may assist investors in understanding our results of operations and assessing our
prospects for future performance, which primarily consist of certain constant currency measures and total segment-
level financial information.
We believe presenting certain financial and operating measures on a constant currency basis is important as it
excludes the impact of foreign currency exchange rate fluctuations that are not indicative of our core results of
operations and are largely outside of our control. We calculate our constant currency non-GAAP financial measures
for current period financial information, such as total net sales using the foreign currency exchange rates that were
in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and
remeasurements in the condensed consolidated financial statements. We also report comparable DTC sales on a
constant currency basis for DTC operations that were open throughout the current and prior reporting periods, and
we may adjust prior reporting periods to conform to current period reporting methodologies. The information
presented on a constant currency basis, as we present such information, may not necessarily be comparable to
similarly titled information presented by other companies, and may not be appropriate measures for comparing our
performance relative to other companies. Constant currency measures should not be considered in isolation, or as
an alternative to US dollar measures that reflect current period foreign currency exchange rates or to other financial
or operating measures presented in accordance with US GAAP.
We believe presenting certain segment-level operating measures, including total segment income from operations
and total segment SG&A expenses, is important because it allows for an evaluation of operating performance and
cost structure across brands. Our segment-level non-GAAP financial measures represent the results of operations
and expenses for our individual reportable operating segments and differ from our consolidated results because
they exclude certain unallocated enterprise and shared brand expenses. Our segment-level non-GAAP financial
measures should not be considered in isolation, or as an alternative to consolidated financial and operating
measures presented in accordance with US GAAP.
Seasonality
Refer to Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly
Report and to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations,” of our 2026 Annual Report for further information regarding the impacts of seasonality on our business.
Table of Contents 26
Results of Operations
Three Months Ended September 30, 2026, Compared to Three Months Ended September 30, 2025. Results of
operations were as follows:
Three Months Ended September 30, | |||||||||||
2026 | 2025 | Change | |||||||||
Amount | % (1) | Amount | % (1) | Amount | % | ||||||
Net sales | $1,480,554 | 100.0% | $1,430,840 | 100.0% | $49,714 | 3.5% | |||||
Cost of sales | 585,442 | 39.5 | 627,018 | 43.8 | 41,576 | 6.6 | |||||
Gross profit | 895,112 | 60.5 | 803,822 | 56.2 | 91,290 | 11.4 | |||||
Selling, general, and administrative expenses | 505,656 | 34.2 | 477,301 | 33.4 | (28,355) | (5.9) | |||||
Income from operations | 389,456 | 26.3 | 326,521 | 22.8 | 62,935 | 19.3 | |||||
Total other income, net | (13,995) | (0.9) | (15,835) | (1.1) | (1,840) | (11.6) | |||||
Income before income taxes | 403,451 | 27.3 | 342,356 | 23.9 | 61,095 | 17.8 | |||||
Income tax expense | 90,316 | 6.1 | 74,204 | 5.2 | (16,112) | (21.7) | |||||
Net income | 313,135 | 21.1 | 268,152 | 18.7 | 44,983 | 16.8 | |||||
Total other comprehensive income, net of tax | 2,550 | 0.2 | 8,978 | 0.7 | (6,428) | (71.6) | |||||
Comprehensive income | $315,685 | 21.3% | $277,130 | 19.4% | $38,555 | 13.9% | |||||
Net income per share | |||||||||||
Basic | $2.32 | $1.82 | $0.50 | 27.5% | |||||||
Diluted | $2.31 | $1.82 | $0.49 | 26.9% | |||||||
(1) May not calculate on rounded amounts.
Net Sales. Net sales by brand, channel, and geography were as follows:
Three Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Net sales by brand | |||||||
HOKA brand | |||||||
Wholesale | $443,661 | $408,891 | $34,770 | 8.5% | |||
Direct-to-Consumer | 233,543 | 225,195 | 8,348 | 3.7 | |||
Total | 677,204 | 634,086 | 43,118 | 6.8 | |||
UGG brand | |||||||
Wholesale | 640,767 | 600,604 | 40,163 | 6.7 | |||
Direct-to-Consumer | 145,595 | 158,983 | (13,388) | (8.4) | |||
Total | 786,362 | 759,587 | 26,775 | 3.5 | |||
Other brands (1) | |||||||
Wholesale | 8,584 | 26,734 | (18,150) | (67.9) | |||
Direct-to-Consumer | 8,404 | 10,433 | (2,029) | (19.4) | |||
Total | 16,988 | 37,167 | (20,179) | (54.3) | |||
Total (1) | $1,480,554 | $1,430,840 | $49,714 | 3.5% | |||
Table of Contents 27
Three Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Net sales by channel | |||||||
Total Wholesale | $1,093,012 | $1,036,229 | $56,783 | 5.5% | |||
Total Direct-to-Consumer | 387,542 | 394,611 | (7,069) | (1.8) | |||
Total (1) | $1,480,554 | $1,430,840 | $49,714 | 3.5% | |||
Net sales by geography | |||||||
Domestic | $835,842 | $839,530 | $(3,688) | (0.4)% | |||
International | 644,712 | 591,310 | 53,402 | 9.0 | |||
Total (1) | $1,480,554 | $1,430,840 | $49,714 | 3.5% | |||
(1) Other brands reportable operating segment for the prior period includes financial results for the phase out of the Koolaburra
brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our consolidated
financial statements in our 2026 Annual Report for further information.
Total net sales increased primarily due to higher net sales for the HOKA brand and UGG brand, partially offset by
lower net sales for Other brands. Drivers of significant changes in net sales, compared to the prior period, were as
follows:
•Net sales of the HOKA brand increased primarily due to higher international net sales across both
channels. Wholesale channel growth was driven by higher sell-in across both international and
domestic markets as certain core franchises continued to perform well globally. DTC channel
growth was driven by higher net sales in the international market, partially offset by lower domestic
net sales as a result of consumers seeking promotional offerings at multi-brand wholesale
destinations.
•Net sales of the UGG brand increased primarily due to higher global net sales in the wholesale
channel, partially offset by lower global net sales in the DTC channel primarily in the domestic
marketplace. Wholesale channel growth was driven by higher sell-in of emerging product
franchises. DTC channel net sales decreased as we believe consumers delayed purchasing until
closer to the time of immediate need as a result of a challenging macroeconomic environment.
•Net sales of Other brands decreased primarily due to the phase out of standalone operations of the
Koolaburra brand in the prior fiscal year.
Supplemental Disclosure
•On a constant currency basis, net sales increased by 2.8%, compared to the prior period.
•Comparable DTC channel net sales for the 13 weeks ended September 27, 2026, decreased by
6.4%, compared to the prior period.
•We experienced a decrease of 0.9% in the total volume of units sold to 22,500 from 22,700,
compared to the prior period. Units sold include all categories such as footwear, apparel,
accessories, home goods, and care kits across all brands. Percentages may not calculate on
rounded units. The prior period includes units sold by brands phased out during the prior fiscal year.
Gross Profit. Gross margin increased to 60.5% from 56.2%, compared to the prior period, primarily due to benefits
from IEEPA tariff net refunds after accommodations provided under cost-sharing arrangements with our
independent manufacturers, as well as favorable brand product mix, and favorable full-price selling.
Table of Contents 28
Selling, General, and Administrative Expenses. Drivers of significant net changes in SG&A expenses, compared to
the prior period, were as follows:
•Increased advertising, marketing, and promotion expenses of approximately $19,500, primarily for
the HOKA brand and UGG brand to drive global brand awareness and market share gains, highlight
new product categories, and provide localized marketing.
•Increased payroll and related costs of approximately $7,300, primarily due to higher headcount for
investments in talent led by the HOKA brand, including for international retail stores. The increase in
payroll and related costs was comprised of approximately $5,200 of expenses specific to our
brands, as well as approximately $2,100 of higher unallocated enterprise and shared brand
expenses.
Income from Operations. Income (loss) from operations by reportable operating segment was as follows:
Three Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Income (loss) from operations | |||||||
HOKA brand | $236,557 | $221,297 | $15,260 | 6.9% | |||
UGG brand | 325,756 | 272,273 | 53,483 | 19.6 | |||
Other brands (1) | (1,189) | 2,703 | (3,892) | (144.0) | |||
Unallocated enterprise and shared brand expenses (2) | (171,668) | (169,752) | (1,916) | (1.1) | |||
Total | $389,456 | $326,521 | $62,935 | 19.3% | |||
(1) Other brands reportable operating segment for the prior period includes financial results for the phase out of the Koolaburra
brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our consolidated
financial statements in our 2026 Annual Report for further information.
(2) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, the costs are recorded
in unallocated enterprise and shared brand expenses. Refer to Note 12, “Reportable Operating Segments,” of our condensed
consolidated financial statements in Part I, Item 1 within this Quarterly Report for further information.
The increase in total income from operations, compared to the prior period, was primarily due to higher net sales,
with higher gross margins, including the benefits of IEEPA tariff net refunds, partially offset by higher SG&A
expenses as a percentage of net sales. The significant drivers of net changes in total income from operations,
compared to the prior period, were as follows:
•The increase in income from operations of the HOKA brand was due to higher net sales at higher
gross margins, largely offset by higher SG&A expenses as a percentage of net sales primarily
driven by higher advertising, marketing, and promotion expenses and payroll and related costs,
partially offset by lower other SG&A expenses.
•The increase in income from operations of the UGG brand was due to higher net sales at higher
gross margins and relatively flat SG&A expenses as a percentage of net sales.
Total Other Income, Net. The decrease in total other income, net, compared to the prior period, was primarily due to
lower interest income from lower cash balances and lower interest rates, partially offset by interest income related to
tariff refunds.
Income Tax Expense. Income tax expense and our effective income tax rate were as follows:
Three Months Ended September 30, | |||
2026 | 2025 | ||
Income tax expense | $90,316 | $74,204 | |
Effective income tax rate | 22.4% | 21.7% | |
Table of Contents 29
The net increase in our effective income tax rate, compared to the prior period, was primarily due to non-recurring
discrete tax benefits for adjustments to income taxes payable from the prior period and reductions in excess tax
benefits for stock-based compensation.
Net Income. The increase in net income, compared to the prior period, was due to higher operating margins on
higher net sales. Net income per share increased, compared to the prior period, due to higher net income and lower
weighted-average common shares outstanding driven by stock repurchases.
Total Other Comprehensive Income, Net of Tax. The decrease in total other comprehensive income, net of tax,
compared to the prior period, was primarily due to higher unrealized losses on derivative contracts, partially offset
by higher foreign currency translation gains relating to changes in the net asset position against Asian foreign
currency exchange rates.
Six Months Ended September 30, 2026, Compared to Six Months Ended September 30, 2025. Results of
operations were as follows:
Six Months Ended September 30, | |||||||||||
2026 | 2025 | Change | |||||||||
Amount | % (1) | Amount | % (1) | Amount | % | ||||||
Net sales | $2,500,085 | 100.0% | $2,395,378 | 100.0% | $104,707 | 4.4% | |||||
Cost of sales | 1,029,810 | 41.2 | 1,053,650 | 44.0 | 23,840 | 2.3 | |||||
Gross profit | 1,470,275 | 58.8 | 1,341,728 | 56.0 | 128,547 | 9.6 | |||||
Selling, general, and administrative expenses | 925,518 | 37.0 | 849,920 | 35.5 | (75,598) | (8.9) | |||||
Income from operations | 544,757 | 21.8 | 491,808 | 20.5 | 52,949 | 10.8 | |||||
Total other income, net | (27,744) | (1.1) | (33,614) | (1.4) | (5,870) | (17.5) | |||||
Income before income taxes | 572,501 | 22.9 | 525,422 | 21.9 | 47,079 | 9.0 | |||||
Income tax expense | 129,394 | 5.2 | 118,067 | 4.9 | (11,327) | (9.6) | |||||
Net income | 443,107 | 17.7 | 407,355 | 17.0 | 35,752 | 8.8 | |||||
Total other comprehensive income, net of tax | 5,837 | 0.2 | 543 | — | 5,294 | 975.0 | |||||
Comprehensive income | $448,944 | 18.0% | $407,898 | 17.0% | $41,046 | 10.1% | |||||
Net income per share | |||||||||||
Basic | $3.24 | $2.75 | $0.49 | 17.8% | |||||||
Diluted | $3.24 | $2.74 | $0.50 | 18.2% | |||||||
(1) May not calculate on rounded amounts.
Net Sales. Net sales by brand, channel, and geography were as follows:
Six Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Net sales by brand | |||||||
HOKA brand | |||||||
Wholesale | $890,424 | $843,097 | $47,327 | 5.6% | |||
Direct-to-Consumer | 490,318 | 444,108 | 46,210 | 10.4 | |||
Total | 1,380,742 | 1,287,205 | 93,537 | 7.3 | |||
UGG brand | |||||||
Wholesale | 834,985 | 786,421 | 48,564 | 6.2 | |||
Direct-to-Consumer | 229,426 | 238,258 | (8,832) | (3.7) | |||
Total | 1,064,411 | 1,024,679 | 39,732 | 3.9 | |||
Table of Contents 30
Six Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Other brands (1) | |||||||
Wholesale | 34,317 | 59,075 | (24,758) | (41.9) | |||
Direct-to-Consumer | 20,615 | 24,419 | (3,804) | (15.6) | |||
Total | 54,932 | 83,494 | (28,562) | (34.2) | |||
Total (1) | $2,500,085 | $2,395,378 | $104,707 | 4.4% | |||
Net sales by channel | |||||||
Total Wholesale | $1,759,726 | $1,688,593 | $71,133 | 4.2% | |||
Total Direct-to-Consumer | 740,359 | 706,785 | 33,574 | 4.8 | |||
Total (1) | $2,500,085 | $2,395,378 | $104,707 | 4.4% | |||
Net sales by geography | |||||||
Domestic | $1,353,270 | $1,340,788 | $12,482 | 0.9% | |||
International | 1,146,815 | 1,054,590 | 92,225 | 8.7 | |||
Total (1) | $2,500,085 | $2,395,378 | $104,707 | 4.4% | |||
(1) Other brands reportable operating segment for the prior period includes financial results for the phase out of the Koolaburra
brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our consolidated
financial statements in our 2026 Annual Report for further information.
Total net sales increased primarily due to higher net sales for the HOKA brand and UGG brand, partially offset by
lower net sales for Other brands. Drivers of significant changes in net sales, compared to the prior period, were as
follows:
•Net sales of the HOKA brand increased primarily due to higher global net sales across both
channels. Wholesale channel growth was driven by higher sell-in across both international and
domestic markets as certain core franchises continue to perform well globally. DTC channel growth
was driven by higher net sales in the international market, slightly offset by lower domestic net sales
as macroeconomic pressures increased during the second quarter and consumers were seeking
promotional offerings at multi-brand wholesale destinations.
•Net sales of the UGG brand increased primarily due to higher global net sales in the wholesale
channel driven by higher sell-in of emerging product franchises, including year-round product
offerings. This growth was partially offset by lower domestic net sales in the DTC channel as we
believe consumers are delaying purchasing until closer to the time of immediate need as
macroeconomic pressures increased during the second quarter.
•Net sales of Other brands decreased primarily due to the phase out of standalone operations of the
Koolaburra brand in the prior fiscal year, as well as lower domestic net sales for the Teva brand as it
refocuses its wholesale distribution with outdoor and premium retailers.
Supplemental Disclosure
•On a constant currency basis, net sales increased by 3.6% compared to the prior period.
•Comparable DTC channel net sales for the 26 weeks ended September 27, 2026, decreased by
0.8%, compared to the prior period.
•We experienced a decrease of 1.1% in the total volume of units sold to 37,000 from 37,400,
compared to the prior period. Units sold include all categories such as footwear, apparel,
accessories, home goods, and care kits across all brands. Percentages may not calculate on
rounded units. The prior period includes units sold by brands phased out during the prior fiscal year.
Table of Contents 31
•As of September 30, 2026, we have a total of 223 global Company-owned retail stores (including
148 UGG brand retail stores and 75 HOKA brand retail stores), compared to a total of 200 global
Company-owned retail stores (including 145 UGG brand retail stores and 55 HOKA brand retail
stores) in the prior period.
Gross Profit. Gross margin increased to 58.8% from 56.0% compared to the prior period, primarily due to benefits
from IEEPA tariff net refunds after accommodations provided under cost-sharing arrangements with our
independent manufacturers, as well as favorable brand product mix, and favorable full-price selling.
Selling, General, and Administrative Expenses. Drivers of significant net changes in SG&A expenses, compared to
the prior period, were as follows:
•Increased advertising, marketing, and promotion expenses of approximately $29,800, primarily for
the HOKA brand and UGG brand to drive global brand awareness and market share gains, highlight
new product categories, and provide localized marketing.
•Increased payroll and related costs of approximately $19,800, primarily due to higher headcount for
investments in talent led by the HOKA brand, including for international retail stores. The increase in
payroll and related costs was comprised of approximately $16,300 of expenses specific to our
brands, as well as approximately $3,500 of higher unallocated enterprise and shared brand
expenses.
•Increased rent and occupancy of approximately $11,600, primarily due to investments in the HOKA
and UGG brands’ global retail store footprints, particularly HOKA brand expansion in Asia.
•Increased other SG&A expenses of approximately $11,200, primarily due to higher IT expenses,
partially offset by other miscellaneous expenses, including bad debt expenses. The increase in
other SG&A expenses was comprised of approximately $8,300 of unallocated enterprise and
shared brand expenses, as well as approximately $2,900 of expenses specific to our brands,
primarily for the HOKA brand and UGG brand.
Income from Operations. Income (loss) from operations by reportable operating segment was as follows:
Six Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Income (loss) from operations | |||||||
HOKA brand | $492,025 | $474,825 | $17,200 | 3.6% | |||
UGG brand | 379,770 | 326,256 | 53,514 | 16.4 | |||
Other brands (1) | 5,353 | 10,456 | (5,103) | (48.8) | |||
Unallocated enterprise and shared brand expenses (2) | (332,391) | (319,729) | (12,662) | (4.0) | |||
Total | $544,757 | $491,808 | $52,949 | 10.8% | |||
(1) Other brands reportable operating segment for the prior period includes financial results for the phase out of the Koolaburra
brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our consolidated
financial statements in our 2026 Annual Report for further information.
(2) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, the costs are recorded
in unallocated enterprise and shared brand expenses. Refer to Note 12, “Reportable Operating Segments,” of our condensed
consolidated financial statements in Part I, Item 1 within this Quarterly Report for further information.
The increase in total income from operations, compared to the prior period, was primarily due to higher net sales
with higher gross margins, including the benefits of IEEPA tariff net refunds, partially offset by higher SG&A
expenses as a percentage of net sales. The significant drivers of net changes in total income from operations,
compared to the prior period, were as follows:
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•The increase in income from operations of the HOKA brand was due to higher net sales at higher
gross margins, partially offset by higher SG&A expenses as a percentage of net sales driven by
higher advertising, marketing, and promotion expenses, higher payroll and related costs, and higher
rent and occupancy.
•The increase in income from operations of the UGG brand was due to higher net sales at higher
gross margins, partially offset by higher SG&A expenses as a percentage of net sales driven by
higher other SG&A expenses, higher rent and occupancy, and higher advertising, marketing, and
promotion expenses.
•The increase in unallocated enterprise and shared brand expenses was primarily due to higher
other SG&A expenses driven by IT expenses, lower net foreign currency-related remeasurement
gains, and higher payroll and related costs, partially offset by lower depreciation and related costs.
Total Other Income, Net. The decrease in total other income, net, compared to the prior period, was primarily due to
lower interest income from lower interest rates and lower cash balances, partially offset by interest income related to
tariff refunds.
Income Tax Expense. Income tax expense and our effective income tax rate were as follows:
Six Months Ended September 30, | |||
2026 | 2025 | ||
Income tax expense | $129,394 | $118,067 | |
Effective income tax rate | 22.6% | 22.5% | |
The net increase in our effective income tax rate, compared to the prior period, was primarily due to non-recurring
discrete tax benefits for adjustments to income taxes payable from the prior period, offset by non-recurring discrete
tax expenses related to changes in unrecognized tax benefits.
Net Income. The increase in net income, compared to the prior period, was due to higher operating margins on
higher net sales. Net income per share increased, compared to the prior period, due to higher net income and lower
weighted-average common shares outstanding driven by stock repurchases.
Total Other Comprehensive Income, Net of Tax. The increase in total other comprehensive income, net of tax,
compared to the prior period, was primarily due to higher unrealized gains on derivative contracts, partially offset by
lower foreign currency translation gains relating to changes in the net asset position against European foreign
currency exchange rates.
Liquidity and Capital Resources
Sources of Liquidity. We finance our working capital and operating requirements using a combination of cash and
cash equivalents balances, cash provided by operating activities, and repatriation of cash. We also have available
borrowing capacity under our revolving credit facilities. We believe our sources of cash and cash equivalents will
provide sufficient liquidity to enable us to meet our working capital requirements and contractual obligations for at
least the next 12 months and will be sufficient to allow us to pursue our business strategies and plans.
Cash and Cash Equivalents. As of September 30, 2026, and March 31, 2026, our cash and cash equivalents
balances were $1,209,722 and $1,907,249, respectively, the majority of which is held in highly rated money market
funds and interest-bearing bank deposit accounts with established national and global financial institutions.
Cash Flows from Operating Activities. For the six months ended September 30, 2026, and 2025, we used $9,262
and generated $44,233, respectively, of cash from operating activities. Refer to the section titled “Cash Flows”
below for further discussion on cash flows from ongoing operating activities.
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Repatriation of Cash. Our cash repatriation strategy, and by extension, our liquidity, may be impacted by several
additional considerations, which include future changes to, or our interpretations of, global tax law and regulations,
and our actual earnings in various jurisdictions in future periods. During the six months ended September 30, 2026,
$250,000 of cash and cash equivalents was repatriated from an international subsidiary that was previously subject
to income taxes, and no cash and cash equivalents were repatriated during the six months ended September 30,
2025. As of September 30, 2026, and March 31, 2026, we have $278,662 and $653,924, respectively, of cash and
cash equivalents held by international subsidiaries, a portion of which may be subject to additional foreign
withholding taxes if it were to be repatriated.
Revolving Credit Facilities. Information about our revolving credit facilities available as of September 30, 2026, is as
follows:
•Primary Credit Facility. In August 2026, we entered into the First Amendment, which amended our
Credit Agreement and extended its maturity date to August 27, 2031. The Amended Credit
Agreement provides for unsecured borrowings of up to $500,000 and contains a $25,000 sublimit
for the issuance of letters of credit. Under the Primary Credit Facility, there is no outstanding
balance, available borrowings of $499,412, and outstanding letters of credit of $588.
•China Credit Facility. During the six months ended September 30, 2026, we made no borrowings or
repayments and there were no material changes to the terms or to the outstanding bank
guarantees under our credit facility in China disclosed in our 2026 Annual Report.
•Debt Covenants. As of September 30, 2026, we are in compliance with all covenants under our
revolving credit facilities.
Refer to Note 5, “Revolving Credit Facilities,” of our condensed consolidated financial statements in Part I, Item 1
within this Quarterly Report for further information on our Primary Credit Facility, as well as Note 6, “Revolving
Credit Facilities,” of our consolidated financial statements in Part IV of our 2026 Annual Report for further
information regarding the terms of our revolving credit facilities.
Primary Cash Requirements. Our primary cash requirements include working capital, purchase obligations,
payments to fulfill operating lease obligations, capital expenditures and cloud computing arrangements, and our
stock repurchase program.
Working Capital. Our working capital requirements begin when we purchase materials and inventories and continue
until we collect the resulting trade accounts receivable. A significant portion of the UGG brand’s business has
historically been seasonal, with a higher concentration of net sales in the third fiscal quarter, which contributes to
variability in our working capital requirements and necessitates the use of available cash to build inventory levels in
advance of higher selling seasons. While the impact of seasonality has been partially mitigated by the increasing
contribution of HOKA brand net sales, which are generally more evenly distributed throughout the fiscal year, as well
as by the diversification and expansion of our year-round product offerings across our brands, we expect working
capital requirements to continue to fluctuate period to period.
Stock Repurchase Program. The Board last approved an additional authorization of $3,500,000 on May 20, 2026, to
repurchase shares of our common stock under the same conditions as our prior stock repurchase program. As of
September 30, 2026, the aggregate remaining authorization under our stock repurchase program is $4,412,139.
Our stock repurchase program does not obligate us to acquire any amount of common stock and may be
suspended at any time at our discretion. Refer to Note 10, “Stockholders’ Equity,” of our condensed consolidated
financial statements in Part I, Item 1 and to Part II, Item 2, “Unregistered Sales of Equity Securities and Use of
Proceeds,” within this Quarterly Report for further information regarding our stock repurchase program.
Table of Contents 34
Cash Flows
The following table summarizes the major components of our condensed consolidated statements of cash flows for
the periods presented:
Six Months Ended September 30, | |||||||
2026 | 2025 | Change | |||||
Amount | Amount | Amount | % | ||||
Net cash (used in) provided by operating activities | $(9,262) | $44,233 | $(53,495) | (120.9)% | |||
Net cash used in investing activities | (37,176) | (45,932) | 8,756 | 19.1 | |||
Net cash used in financing activities | (653,516) | (475,475) | (178,041) | (37.4) | |||
Effect of foreign currency exchange rates on cash and cash equivalents | 2,427 | 2,465 | (38) | (1.5) | |||
Net change in cash and cash equivalents | $(697,527) | $(474,709) | $(222,818) | (46.9)% | |||
Operating Activities. Net cash (used in) provided by operating activities reflects net income after non-cash
adjustments and changes in operating assets and liabilities.
The increase in net cash used in operating activities during the six months ended September 30, 2026, compared to
the prior period, was due to $88,583 of unfavorable changes in operating assets and liabilities partially offset by
$35,088 of favorable net income after non-cash adjustments that included the impact from IEEPA tariff net refunds
and related interest income. Changes in operating assets and liabilities were primarily due to unfavorable impacts
from (1) net trade accounts receivable from timing of sales and respective receipts; (2) timing of net receipts and
sales of inventory; and (3) timing of tax payments and receipts, partially offset by favorable impacts from (4) net
trade accounts payable from timing of receipts of goods and services and related disbursements, including
accommodations provided under cost-sharing arrangements with independent manufacturers for IEEPA tariff
refunds; and (5) timing of derivative contract cash settlements recorded to prepaid expenses and other current
assets.
Investing Activities. The decrease in net cash used in investing activities during the six months ended September
30, 2026, compared to the prior period, was primarily due to lower purchases of property and equipment primarily
related to the timing of upgrades to our office facilities completed in the prior fiscal year, partially offset by
investments in our global retail store footprint.
Financing Activities. The increase in net cash used in financing activities during the six months ended September
30, 2026, compared to the prior period, was primarily due to a higher dollar value of stock repurchases.
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Critical Accounting Policies and Estimates
The preparation of our condensed consolidated financial statements in accordance with US GAAP requires
management to make estimates and assumptions that affect the amounts reported. Management bases these
estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting
pronouncements, and other factors it believes to be reasonable. In addition, management has considered the
potential impact of macroeconomic and geopolitical factors on our financial condition, results of operations, and
liquidity, including inflationary pressures, increased tariffs, tariff refunds received and the recoverability of remaining
tariff refund claims, rising supply chain costs, high interest rates, foreign currency exchange rate volatility, escalating
global conflicts, changes in discretionary spending, and recession risks. Although the full impact of these factors,
including the amount, timing, and realization of certain tariff refunds, is unknown, management believes it has made
appropriate accounting estimates and assumptions based on the facts and circumstances available as of the
reporting date. However, actual results could differ materially from these estimates and assumptions, which may
result in material effects on our financial condition, results of operations, and liquidity. Refer to Note 1, “General,” of
our condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report, for further discussion
of our significant accounting policies and use of estimates.
There have been no material changes to the critical accounting policies, or to the key estimates and assumptions,
disclosed in the section titled “Critical Accounting Policies and Estimates” in Part II, Item 7, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” within our 2026 Annual Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
In the normal course of business, our financial position and results of operations are subject to a variety of market
risks, including those associated with commodity prices, foreign currency exchange rates, and inflation, and, to a
lesser extent, interest rates, and credit risks. We regularly assess these risks and have established policies and
business practices designed to mitigate their effects. There have been no material changes in our primary risk
exposures or management of market risks since those last disclosed in Part II, Item 7A, “Quantitative and
Qualitative Disclosures About Market Risk,” within our 2026 Annual Report.
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ITEM 4. CONTROLS AND PROCEDURES |
Disclosure Controls and Procedures
We maintain a system of disclosure controls and procedures, as defined in Rule 13a-15(e) under the Exchange Act,
which are designed to provide reasonable assurance that information required to be disclosed in the reports that we
file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods
specified in the SEC’s rules and forms. Our disclosure controls and procedures are designed to reasonably ensure
that such information is accumulated and communicated to management, including our PEO and Principal Financial
and Accounting Officer (PFAO), as appropriate, to allow timely decisions regarding required disclosure.
In designing and evaluating our disclosure controls and procedures, our management recognized that any system
of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-
benefit relationship of possible controls and procedures. In addition, the design of any system of controls is based in
part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become
inadequate because of changes in conditions, or the degree of compliance with policies or procedures may
deteriorate. Because of the inherent limitations in any system of controls, misstatements due to error or fraud may
occur and not be detected, and controls may be circumvented or overridden.
Under the supervision and with the participation of management, we conducted an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures as of September 30, 2026. Based on that
evaluation, our PEO and PFAO concluded that our disclosure controls and procedures are effective at a reasonable
assurance level as of September 30, 2026.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting identified in management’s evaluation
pursuant to Rule 13a-15(d) of the Exchange Act during the three months ended September 30, 2026, that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Table of Contents 37
PART II. OTHER INFORMATION
The following should be read together with the information in Part I, Item 1A, “Risk Factors,” and Part I, Item 3,
“Legal Proceedings,” as well as Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder
Matters and Issuer Purchases of Equity Securities,” and Part II, Item 9B, “Other Information,” of our 2026 Annual
Report, filed with the SEC on May 22, 2026, which is available free of charge on the SEC’s website at www.sec.gov
and our website at ir.deckers.com.
Unless otherwise indicated, all figures herein are expressed in thousands, except for share and per share data.
ITEM 1. LEGAL PROCEEDINGS |
As part of our global policing program to protect our intellectual property rights, from time to time, we file lawsuits in
various jurisdictions asserting claims for alleged acts of trademark counterfeiting, trademark infringement, patent
infringement, trade dress infringement, and trademark dilution. We generally have multiple actions such as these
pending at any given point in time. These actions may result in seizure of counterfeit merchandise, out-of-court
settlements with defendants, or other outcomes. In addition, from time to time, we are subject to claims in which
opposing parties will raise, either as affirmative defenses or as counterclaims, the invalidity or unenforceability of
certain of our intellectual property rights, including allegations that the UGG brand trademark registrations and
design patents are invalid or unenforceable. Furthermore, we are aware of many instances throughout the world in
which a third-party is using our brand trademarks within its internet domain name.
From time to time, we are involved in various legal proceedings, disputes, and other claims arising in the ordinary
course of business, including employment, intellectual property, product liability, and breach of contract claims.
Although the results of these ordinary course matters cannot be predicted with certainty, we currently believe that
the final outcome of any such matters will not, individually or in the aggregate, have a material adverse effect on our
business, results of operations, financial condition, or cash flows. However, regardless of the merit of the claims
raised or the outcome, any of these matters can have an adverse impact on us as a result of legal costs, diversion
of management’s time and resources, and other factors.
ITEM 1A. RISK FACTORS |
An investment in our common stock involves risks. Before making an investment decision, you should carefully
consider all the information within Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and
Results of Operations,” as well as in our condensed consolidated financial statements and the related notes
included in Part I, Item 1, “Financial Statements,” within this Quarterly Report. In addition, you should carefully
consider the risks and uncertainties described in Part I, Item 1A, “Risk Factors,” of our 2026 Annual Report, as well
as in our other public filings with the SEC. If any of the identified risks are realized, our business, results of
operations, financial condition, liquidity, and prospects could be materially and adversely affected. In that case, the
trading price of our common stock may decline, and you could lose all or part of your investment. In addition, other
risks of which we are currently unaware, or which we do not currently view to be material, could have a material
adverse effect on our business, results of operations, financial condition, liquidity, and prospects.
During the three months ended September 30, 2026, there were no material changes to the risks and uncertainties
described in Part I, Item 1A, “Risk Factors,” of our 2026 Annual Report.
Table of Contents 38
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Unregistered Sales of Equity Securities
None.
Use of Proceeds
Not applicable.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Our Board of Directors (Board) has approved a stock repurchase program which authorizes us to repurchase
shares of our common stock in the open market or in privately negotiated transactions, subject to market conditions,
applicable legal requirements, and other factors (collectively, the stock repurchase program). Our Board last
approved an additional authorization of $3,500,000 on May 20, 2026, to repurchase shares of our common stock
under the same conditions as our prior stock repurchase program. As of September 30, 2026, the aggregate
remaining authorization under our stock repurchase program is $4,412,139.
Our stock repurchase program does not obligate us to acquire any amount of common stock and may be
suspended at any time at our discretion.
Stock repurchase activity under our stock repurchase program during the three months ended September 30, 2026,
was as follows:
Total Number of Shares Repurchased (1) (2) | Weighted Average Price per Share | Dollar Value of Shares Repurchased (2) (3) | Dollar Value of Shares Remaining for Repurchase (2) | |||||
July 1 - July 31, 2026 | 1,240,372 | $102.52 | $127,167 | $4,584,249 | ||||
August 1 - August 31, 2026 | 1,214,678 | 92.30 | 112,111 | 4,472,138 | ||||
September 1 - September 30, 2026 | 740,773 | 81.00 | 59,999 | 4,412,139 | ||||
Total | 3,195,823 | 93.65 | $299,277 | 4,412,139 |
(1) All share repurchases were made pursuant to our stock repurchase program in open-market transactions.
(2) May not calculate on rounded amounts.
(3) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs.
Subsequent to September 30, 2026, through October 8, 2026, we repurchased 187,375 shares of our common
stock at a weighted average price of $80.05 per share for $15,000. As of October 8, 2026, we had $4,397,139
remaining authorized for repurchases under the stock repurchase program.
Refer to the section titled “Liquidity” under Part I, Item 2, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” and Note 10, “Stockholders’ Equity,” of our condensed consolidated financial
statements in Part I, Item 1 within this Quarterly Report, for further information on our stock repurchase program.
Table of Contents 39
ITEM 5. OTHER INFORMATION |
Director and Officer Trading Plans and Arrangements
Our directors and executive officers may enter trading plans or other arrangements with financial institutions to
purchase or sell shares of our common stock. These plans or arrangements may constitute Rule 10b5-1 trading
arrangements or non-Rule 10b5-1 trading arrangements, in each case as defined under Item 408(a) of Regulation
S-K.
During the three months ended September 30, 2026, no Rule 10b5-1 trading arrangements or non-Rule 10b5-1
trading arrangements were adopted terminated
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ITEM 6. EXHIBITS |
EXHIBIT INDEX
Exhibit Number | Description of Exhibit | |
#10.1 | First Amendment to Credit Agreement, dated as of August 27, 2026, by and among Deckers Outdoor Corporation, Deckers Europe Limited, Deckers UK Ltd., Deckers Outdoor Canada ULC, Deckers Outdoor International Limited, Deckers Coromar, LLC, DBrands SGP Pte. Ltd., as Borrowers, Deckers Consumer Direct Corporation, Deckers Retail, LLC, Deckers Camino, LLC and Deckers Pacific Corporation, as Guarantors, Citibank, N.A., as administrative agent, joint lead arranger and joint bookrunner, Fifth Third Bank, National Association, as joint lead arranger and joint bookrunner, HSBC Bank USA, National Association, as joint lead arranger and joint bookrunner, and the lenders party thereto (Exhibit 10.1 to the Registrant’s Form 8-K filed on August 31, 2026, and incorporated by reference herein) | |
*31.1 | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act, adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended | |
*31.2 | Certification of Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) under the Exchange Act, adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended | |
**32.1 | Certification of Principal Executive Officer and Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended | |
*101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |
*101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
*101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
*104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Filed herewith.
** Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.
DECKERS OUTDOOR CORPORATION (Registrant) |
/s/ STEVEN J. FASCHING |
Steven J. Fasching Chief Financial Officer (Principal Financial and Accounting Officer) |
Date: October 29, 2026