Deckers Outdoor (DECK) Q1 2027 earnings summary

Executive summary

• Achieved record first quarter revenue of $1.02 billion, up 5.7% year-over-year, driven by strong HOKA and UGG brand performance, while Other brands declined due to phase-outs and Teva's refocus.

• Diluted EPS rose to $0.94 from $0.93 year-over-year, exceeding expectations and supported by share repurchases.

• Growth led by strong direct-to-consumer (DTC) performance, up 13% year-over-year, and robust demand for HOKA and UGG globally.

• Maintained high levels of full price sell-through and disciplined inventory management, supporting brand strength and pricing integrity.

• Continued investment in innovation, product newness, and marketing to drive consumer engagement and market share gains.

Financial highlights

• HOKA net sales up 7.7% to $703.5 million; UGG up 4.9% to $278.0 million; Other brands down 18.1% to $37.9 million.

• Wholesale channel sales up 2.2% to $666.7 million; DTC channel up 13% to $352.8 million.

• Gross margin improved to 56.4%, up 60 basis points year-over-year, driven by favorable channel and product mix, full price selling, and FX.

• SG&A expenses rose to $419.9 million, up 13% year-over-year, reflecting investments in brand initiatives, marketing, and technology.

• Cash and cash equivalents at quarter-end were $1.60 billion; inventories at $807.6 million; no outstanding borrowings.

Outlook and guidance

• Full-year net sales expected between $5.86 billion and $5.91 billion, with HOKA projected to grow low double digits and UGG mid-single digits.

• Gross margin outlook raised to slightly above 56.5%; tariff rate assumption increased to 12.5%.

• SG&A to remain ~35% of revenue; operating margin expected slightly above 21.5%.

• Diluted EPS guidance raised to $7.35–$7.50, reflecting gross margin outperformance and share repurchases.

• Second half growth acceleration expected, especially for HOKA in international wholesale and distributor channels.