Deckers Outdoor Corporation Q1 FY2026 earnings call

Brand Performance - HOKA: Had its largest quarter in history, with global revenue up 20% to $653 million. International regions drove growth, with EMEA and APAC showing strong performance. Franchises like Bondi, Clifton, and Arahi performed well, with positive sell-throughs. The brand bolstered capabilities in design, innovation, etc., and launched the 'Together We Fly Higher' campaign. - UGG: Global revenue grew 19% to $265 million. Drove its largest June-ended quarter, with international regions contributing the bulk of growth. The brand's 365 initiative was successful in sandal and sneaker segments, and the PeakMod style was a hit.### Operational Efforts: Teams tightly managed spend, and investments were made in brand-building. Disciplined approach to marketplace management for HOKA, and strategic positioning for UGG in the global marketplace.

In the first quarter, Deckers' total revenue was $965 million, up 17% year-over-year. HOKA contributed the majority of incremental revenue, with global revenue increasing 20% to $653 million. UGG had global revenue growth of 19% to $265 million. HOKA's international business drove significant growth, with EMEA and APAC showing strong performance. UGG's growth was driven by international regions, especially EMEA and China, and its 365 initiative.

Second Quarter Guidance - Revenue expected in the range of $1.38 billion to $1.42 billion. - HOKA to increase approximately 10%, UGG to increase at least mid-single digits. - Gross margin expected to be in the range of 53.5% to 54%. - SG&A expected to be approximately 33.5% of revenue. - Diluted earnings per share expected to be in the range of $1.50 to $1.55.### Tariff Impact: Awaiting final details, but assuming Vietnam tariff increase, expected unmitigated impact to cost of goods sold in fiscal year 2026 is $185 million, up from previous estimate of up to $150 million.

Risks - Macroeconomic uncertainty affecting the consumer environment and purchasing behavior. - Tariff uncertainties and their potential impact on cost of goods sold and consumer reaction. - Dynamic consumer behavior changes, which could affect brand performance.

Q: Jay Sole asked about HOKA's wholesale vs DTC channel growth and inventory of previous styles.

A: Steve Fasching said there should be more balanced growth between wholesale and DTC in Q2, with improvement in DTC performance. Inventory of older styles is moving out, and the brand is excited about upcoming models.

Q: Laurent Vasilescu asked about HOKA's channel balance and retail expansion.

A: Steve Fasching said there will be improved domestic market performance with sequential improvement in Q1, and Stefano Caroti mentioned plans to open more retail stores globally.

Q: Adrienne Yih asked about price increase strategy.

A: Stefano Caroti said price increases are selective and staggered, and Steve Fasching added about staggered price increases in fall and spring.

Q: Jonathan Komp asked about HOKA's capability bolstering.

A: Stefano Caroti said the brand is adding capabilities in innovation, design, etc., to lead in a competitive landscape.

Q: Rick Patel asked about HOKA's international growth drivers.

A: Stefano Caroti said revenue growth outpaces door expansion and sell-through outpaces sell-in, with strong performance in regions like Europe and China.

Q: Samuel Poser asked about store performance.

A: Steve Fasching said retail performed better than e-commerce, though the retail footprint is small.

Q: John Kernan asked about U.S. vs international growth and HOKA DTC.

A: Steve Fasching said international growth will be more robust than U.S. in Q2, and HOKA DTC is seeing incremental improvement with sequential growth in Q1.