Companies

Deckers reports strong start to fiscal year 2026

Jul 30, 2025 United States

Despite a trade environment marked by uncertainty, the US-based company has reported a strong first quarter performance, with net sales growing by 16.9% year-on-year

“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”, commented Stefano Caroti, President and Chief Executive Officer.

First Quarter Results

In the three months to the 30^th of June, the company’s net sales reached 964.5 million US dollars, an increase of 16.9%, or 16.3% on a constant currency basis, as compared to the same period of the last fiscal year.

While Deckers’ domestic net sales decreased slightly by 2.8% year-on-year to 501.3 million US dollars in the first quarter, international net sales increased significantly by 49.7% year-on-year to 463.3 million US dollars.

From a brand perspective, both Hoka and Ugg are maintaining their momentum. In the first quarter of the 2026 financial year, the former reported net sales growth of 19.8% to 653.1 million US dollars, and the latter of 18.9% to 265.1 million US dollars, on a comparable basis to the same quarter of the previous year. On the contrary, Other Brands’ net sales decreased by 19.0% year-on-year to 46.3 million US dollars.

In the first quarter of the current financial year, Deckers reported a contraction in gross margin to 55.8%, down from 56.9% in the first quarter of the 2025 financial year.

The California-based company reported an operating income of 165.3 million US dollars in the first quarter of the current fiscal year, as compared to 132.8 million US dollars in the same period last year. Diluted earnings per share were 0.93 US dollars, as compared to 0.75 US dollars in the same period last year.

At the end of the period, Deckers’ cash and cash equivalents had increased to 1.72 billion US dollars, up from 1.43 billion US dollars. Inventories had also increased from 753.3 million US dollars to 849.4 million US dollars. The company had no outstanding borrowings.

Outlook

“Given the continued uncertainty from evolving global trade policy and related macroeconomic pressures”, the company has only provided second quarter guidance. For this period, the company expects net sales to be between 1.38 and 1.42 billion US dollars, and diluted earnings per share to be between 1.50 and 1.55 US dollars.

Image Credits: amileaminute.com

United States Companies Deckers Footwear hoka Quarter Results Results Ugg