Deckers Q1 Results Show HOKA Momentum
Deckers Q1 results showed HOKA and UGG strength and a stronger DTC mix that lifted EPS guidance, pushing traders to watch DTC profitability and tariff risk.
KEY TAKEAWAYS
- Net sales were $1.020 billion, marking Deckers' first quarter above $1 billion.
- HOKA net sales were $703.5 million while DTC net sales rose 13.0%.
- Deckers narrowed FY EPS to $7.35-$7.50 while maintaining sales guidance of $5.86-$5.91 billion.
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Deckers Brands (Deckers Outdoor Corporation, NYSE: DECK) reported first-quarter fiscal 2027 results on July 23, 2026. Management said demand for HOKA and UGG, combined with a stronger direct-to-consumer (DTC) mix, prompted an upward revision to profit guidance while sales guidance remained unchanged.
Consolidated Results and Margins
For the quarter ended June 30, 2026, Deckers said net sales reached $1.020 billion, up 5.7% from $964.5 million a year earlier, marking its first quarter above $1 billion. Adjusted diluted earnings per share (EPS) were $0.94, exceeding consensus estimates of about $0.87–$0.88. Gross margin expanded 60 basis points to 56.4% compared with the prior-year period.
By channel, wholesale net sales rose 2.2% to $666.7 million, while direct-to-consumer net sales climbed 13.0% to $352.8 million, with comparable DTC sales up 6.8%.
Brand Performance, Geography, and Guidance
HOKA remained the largest growth driver, with net sales of $703.5 million, up 7.7%. UGG net sales increased 4.9% to $278.0 million, while sales at other brands declined 18.1% to $37.9 million. Management described HOKA’s growth as more moderate than the mid-teens gains seen in prior periods but still central to the company’s momentum.
Domestic net sales rose 3.2% to $517.4 million, while international sales grew 8.4% to $502.1 million, reflecting stronger growth outside the U.S.
Deckers maintained its full-year net sales guidance of $5.86 billion to $5.91 billion and narrowed its full-year EPS range to $7.35–$7.50. The tighter profit outlook reflects stronger profitability from a higher-margin DTC mix. Management also flagged potential tariff pressures and a softer margin outlook later in the year, noting planned wholesale timing shifts that partially tempered near-term wholesale growth.
The upward revision to profit expectations, driven by HOKA’s scale and expanding DTC business, suggests improved near-term profit conversion. However, tariff and margin cautions highlight risks to sustaining margins through fiscal 2027. Investors should monitor DTC profitability trends and cost pressures in upcoming quarters.
