Deckers Brands' net sales rose by 16.9% to $964.54m in Q1 FY26 from $825.35m in the same period a year ago. When adjusted for currency fluctuations, net sales still showed a strong increase of 16.3%.
The HOKA brand witnessed a 19.8% rise in net sales, reaching $653.1m, while UGG brand's net sales climbed 18.9% to $265.1m.
Deckers' president and chief executive officer Stefano Caroti said: “HOKA and UGG outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026. Though uncertainty remains elevated in the global trade environment, our confidence in our brands has not changed, and the long-term opportunities ahead are significant. We will lean on the fundamental strengths of our powerful operating model as we continue executing our strategy.”
During an earnings call, Caroti said: “The strength of our business continues to be driven by the remarkable growth in our international markets with HOKA and UGG both contributing to Deckers' 50% increase in international revenue while navigating a choppy US consumer environment.”
However, other brands within the company saw a decline of 19.0% in net sales, dropping to $46.3m.
The company's wholesale net sales enjoyed a substantial boost of 26.7%, amounting to $652.4m, and direct-to-customer (DTC) net sales saw a marginal increase of 0.5% to $312.2m.
Deckers Brands' overall performance in Q1 FY26
Deckers' gross profit for the quarter rose to $537.91m from $470.00m year-over-year, with a gross margin of 55.8%, slightly down from 56.9%.
Its selling, general and administrative (SG&A) expenses increased to $372.62m in Q1 FY26 from $337.19m in the prior year quarter.
The company's operating income also increased to $165.29m during the quarter, up from $132.81m in the same period last year, while net income grew to $139.20m from $115.63m.
Deckers Brands' Q2 FY26 Outlook
Due to ongoing fluctuations in global trade policies and associated macroeconomic challenges, the company has decided to limit its financial projections to the second quarter.
In the second quarter of fiscal 2026 ending 30 September 2025, Deckers anticipates net sales to be between $1.38bn and $1.42bn.
It expects diluted EPS in the range of $1.50 to $1.55, excluding any further share repurchases' impacts.
