Deckers Brands - 10-Q quarterly report FY2027 Q1

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended June 30, 2026


☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 001-36436

DECKERS OUTDOOR CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	95-3015862
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

250 Coromar Drive, Goleta, California 93117

(Address of principal executive offices) (Zip Code)

(805) 967-7611

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	DECK	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting

company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of the close of business on July 9, 2026, the number of outstanding shares of the registrant’s common stock, par value $0.01

per share, was 136,414,227.

Table of Contents 1

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS


		Page

	Cautionary Note Regarding Forward-Looking Statements	2

	PART I - Financial Information
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	5
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29

	PART II - Other Information
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	32
Item 6.	Exhibits	33

	Signatures	34

*Not applicable.

Table of Contents 2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q for our first fiscal quarter ended June 30, 2026 (Quarterly Report), and the information and

documents incorporated by reference within this Quarterly Report, contain “forward-looking statements” within the meaning of Section

27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended

(Exchange Act), which statements are subject to considerable risks and uncertainties. These forward-looking statements are intended

to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements

include all statements other than statements of historical fact contained in, or incorporated by reference within, this Quarterly Report. We

have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “could,” “estimate,” “expect,”

“intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or “would,” and similar expressions or the negative of these expressions.

Specifically, this Quarterly Report, and the information and documents incorporated by reference within this Quarterly Report contain

forward-looking statements relating to, among other things:

•global geopolitical conflicts, instability, and uncertainty, including the resulting impact on our supply chain;

•United States (US) and international trade policies, tariffs and retaliatory measures, including the impact of

tariffs and tariff refunds on our results of operations and liquidity;

•changes in consumer preferences and the purchasing behavior of wholesale partners and consumers,

including shifts in technology, impacting our brands and products, and the footwear and fashion industries;

•global economic trends, including foreign currency exchange rate fluctuations and the effectiveness of our

hedging strategies, changes in interest rates, inflationary pressures, commodity price volatility, and

recessionary concerns;

•the ability to effectively compete in a highly competitive footwear, apparel, and accessories industry;

•the operational challenges faced by our warehouses and distribution centers (DCs), wholesale partners, global

third-party logistics providers (3PLs), and third-party carriers, including those arising from global supply chain

disruptions, labor shortages, and logistics constraints;

•availability of materials and manufacturing capacity, the reliability of overseas production and storage, and the

geographic concentration of manufacturing operations;

•expansion of our brands, product offerings, and investments in our distribution facilities, e-commerce websites,

and retail store footprint;

•our business, operating, investing, capital allocation, marketing, and financing plans and strategies;

•changes to our product distribution strategies, including product allocation and segmentation strategies;

•trends, seasonality, and weather impacting the demand for our products;

•changes to the geographic and seasonal mix of our brands and products;

•the impact of our efforts to continue to advance sustainable and socially conscious business operations, and

our ability to meet the expectations of our investors and other stakeholders with respect to our environmental,

social, and governance practices;

•the effects of climate change, natural disasters, and public health issues, and the resulting impact on our

business and our customers, consumers, suppliers, and business partners;

•security breach or other disruption to our information technology (IT) systems, or those of our vendors;

•our ability to effectively utilize and implement technological advancements, including artificial intelligence, and

risks associated with third-party service providers and interconnected systems;

•the outcomes of legal proceedings, including the impact they may have on our business and intellectual

property rights;

•our interpretation of applicable global tax regulations and changes in global tax laws and audits that may

impact our tax liability and effective tax rates;

•our cash repatriation strategy regarding earnings of non-US subsidiaries and the resulting tax impacts; and

•the value of long-lived assets and potential write-downs or impairment charges.

Forward-looking statements represent management’s current expectations and predictions about trends affecting our business

and industry and are based on information available at the time such statements are made. Although we do not make forward-looking

statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-

looking statements involve numerous known and unknown risks, uncertainties, and other factors that may cause our actual results,

performance, or achievements to be materially different from any future results, performance or achievements predicted, assumed, or

implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from

those expressed or implied by these forward-looking statements are described in Part II, Item 1A, “Risk Factors,” and Part I, Item 2,

“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” within this Quarterly Report, as well as in our

other filings with the Securities and Exchange Commission (SEC), which are available free of charge on the SEC’s website at

www.sec.gov and our website at ir.deckers.com. You should read this Quarterly Report, including the information and documents

incorporated by reference herein, in its entirety and with the understanding that our actual future results may be materially different from

the results expressed or implied by these forward-looking statements. Moreover, new risks and uncertainties emerge occasionally, and it

is not possible for management to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the

extent to which any factor, or combination of factors, may cause our actual future results to be materially different from any results

expressed or implied by any forward-looking statements. Except as required by applicable law or the listing rules of the New York Stock

Exchange, we expressly disclaim any intent or obligation to update any forward-looking statements. We qualify all our forward-looking

statements with these cautionary statements.

Table of Contents 3

PART I. FINANCIAL INFORMATION

References within this Quarterly Report to “Deckers,” “we,” “our,” “us,” “management,” or the “Company” refer to

Deckers Outdoor Corporation, together with its consolidated subsidiaries. HOKA® (HOKA), UGG® (UGG), and

Teva® (Teva) are some of our trademarks. Other trademarks or trade names appearing elsewhere within this

Quarterly Report are the property of their respective owners. The trademarks and trade names within this Quarterly

Report are referred to without the ® and ™ symbols, but such references should not be construed as any indication

that their respective owners will not assert their rights to the fullest extent under applicable law.

Unless otherwise indicated, all figures herein are expressed in thousands, except for per share data. References to

“domestic” refer to our business and operations in the US.

Table of Contents 4

ITEM 1. FINANCIAL STATEMENTS

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in thousands, except par value)


	June 30, 2026	March 31, 2026
ASSETS		(AUDITED)
Cash and cash equivalents	$1,602,589	$1,907,249
Trade accounts receivable, net of allowances ($28,669 and $38,198 as of June 30, 2026, and March 31, 2026, respectively) (Note 2)	378,348	318,978
Inventories	807,580	487,018
Prepaid expenses	61,372	53,236
Other current assets	67,940	82,114
Income tax receivable	4,200	1,825
Total current assets	2,922,029	2,850,420
Property and equipment, net of accumulated depreciation ($473,151 and $457,173 as of June 30, 2026, and March 31, 2026, respectively)	337,750	337,782
Operating lease assets	432,484	335,098
Goodwill	13,990	13,990
Other intangible assets, net of accumulated amortization ($20,849 and $20,968 as of June 30, 2026, and March 31, 2026, respectively)	15,635	15,643
Deferred tax assets, net	67,295	68,501
Other assets	79,438	66,331
Total assets	$3,868,621	$3,687,765
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$726,407	$384,529
Accrued payroll	57,325	119,597
Operating lease liabilities (Note 5)	73,358	83,931
Other accrued expenses	146,713	171,173
Income tax payable	57,294	36,475
Value added tax payable	2,534	8,369
Total current liabilities	1,063,631	804,074
Long-term operating lease liabilities (Note 5)	398,976	291,263
Income tax liability	28,234	26,313
Other long-term liabilities	76,098	66,477
Total long-term liabilities	503,308	384,053
Commitments and contingencies (Note 6)
Stockholders’ equity
Common stock ($0.01 par value per share; 750,000 shares authorized; 136,725 and 139,978 shares issued and outstanding as of June 30, 2026, and March 31, 2026, respectively)	1,367	1,400
Additional paid-in capital	298,049	287,795
Retained earnings	2,034,898	2,246,362
Accumulated other comprehensive loss (Note 8)	(32,632)	(35,919)
Total stockholders’ equity	2,301,682	2,499,638
Total liabilities and stockholders’ equity	$3,868,621	$3,687,765

See accompanying notes to the condensed consolidated financial statements.

Table of Contents 5

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(amounts in thousands, except per share data)


	Three Months Ended June 30,
	2026	2025
Net sales (Note 2 and Note 10)	$1,019,531	$964,538
Cost of sales	444,368	426,632
Gross profit	575,163	537,906
Selling, general, and administrative expenses (Note 10)	419,862	372,619
Income from operations (Note 10)	155,301	165,287
Interest income	(15,868)	(18,696)
Interest expense	2,227	935
Other income, net	(108)	(18)
Total other income, net	(13,749)	(17,779)
Income before income taxes	169,050	183,066
Income tax expense (Note 4)	39,078	43,863
Net income	129,972	139,203
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on cash flow hedges	2,778	(20,209)
Foreign currency translation gain	509	11,774
Total other comprehensive income (loss), net of tax	3,287	(8,435)
Comprehensive income	$133,259	$130,768
Net income per share
Basic	$0.94	$0.93
Diluted	$0.94	$0.93
Weighted-average common shares outstanding (Note 9)
Basic	138,263	149,344
Diluted	138,559	149,635

See accompanying notes to the condensed consolidated financial statements.

Table of Contents 6

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(amounts in thousands)


	Three Months Ended June 30, 2026
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Stockholders’ Equity
	Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Stockholders’ Equity
Balance, March 31, 2026	139,978	$1,400	$287,795	$2,246,362	$(35,919)	$2,499,638
Stock-based compensation	4	—	10,545	—	—	10,545
Shares issued upon vesting	1	—	—	—	—	—
Shares withheld for taxes	—	—	(291)	—	—	(291)
Repurchases of common stock (Note 8)	(3,258)	(33)	—	(338,153)	—	(338,186)
Excise taxes related to repurchases of common stock	—	—	—	(3,283)	—	(3,283)
Net income	—	—	—	129,972	—	129,972
Total other comprehensive income	—	—	—	—	3,287	3,287
Balance, June 30, 2026	136,725	$1,367	$298,049	$2,034,898	$(32,632)	$2,301,682


	Three Months Ended June 30, 2025
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Stockholders’ Equity
	Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Stockholders’ Equity
Balance, March 31, 2025	150,201	$1,502	$253,466	$2,307,699	$(49,654)	$2,513,013
Stock-based compensation	3	—	8,553	—	—	8,553
Shares issued upon vesting	4	—	—	—	—	—
Shares withheld for taxes	—	—	(237)	—	—	(237)
Repurchases of common stock (Note 8)	(1,666)	(17)	—	(182,974)	—	(182,991)
Excise taxes related to repurchases of common stock	—	—	—	(1,627)	—	(1,627)
Net income	—	—	—	139,203	—	139,203
Total other comprehensive loss	—	—	—	—	(8,435)	(8,435)
Balance, June 30, 2025	148,542	$1,485	$261,782	$2,262,301	$(58,089)	$2,467,479

See accompanying notes to the condensed consolidated financial statements.

Table of Contents 7

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)


	Three Months Ended June 30,
	2026	2025
OPERATING ACTIVITIES
Net income	$129,972	$139,203
Reconciliation of net income to net cash provided by (used in) operating activities:
Depreciation, amortization, and accretion	17,713	19,424
Amortization on cloud computing arrangements	559	556
Bad debt (benefit) expense	(4,788)	597
Deferred tax expense (benefit)	470	(713)
Stock-based compensation	10,741	8,739
Loss on disposal of assets	82	22
Changes in operating assets and liabilities:
Trade accounts receivable, net	(54,582)	(44,199)
Inventories	(320,562)	(354,125)
Prepaid expenses and other current assets	9,572	(8,817)
Income tax receivable	(2,375)	21,254
Net operating lease assets and lease liabilities	(248)	1,925
Other assets	(13,542)	(8,438)
Trade accounts payable	341,579	314,845
Other accrued expenses	(96,344)	(66,301)
Income tax payable	20,819	(565)
Other long-term liabilities	8,838	12,739
Net cash provided by operating activities	47,904	36,146
INVESTING ACTIVITIES
Purchases of property and equipment	(15,222)	(23,940)
Proceeds from sale of assets	9	11
Net cash used in investing activities	(15,213)	(23,929)
FINANCING ACTIVITIES
Repurchases of common stock	(338,186)	(182,991)
Cash paid for shares withheld for taxes	(291)	(237)
Net cash used in financing activities	(338,477)	(183,228)
Effect of foreign currency exchange rates on cash and cash equivalents	1,126	2,239
Net change in cash and cash equivalents	(304,660)	(168,772)
Cash and cash equivalents at beginning of period	1,907,249	1,889,188
Cash and cash equivalents at end of period	$1,602,589	$1,720,416

Table of Contents 8

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

(continued)


	Three Months Ended June 30,
	2026	2025
SUPPLEMENTAL CASH FLOW DISCLOSURE
Cash paid during the period
Income taxes, net of refunds	$19,011	$16,923
Interest	1,407	780
Operating leases	27,380	20,437
Non-cash investing activities
Changes in trade accounts payable and other accrued expenses for purchases of property and equipment	291	80
Accrued for asset retirement obligation assets related to leasehold improvements	2,315	214
Non-cash financing activities
Accrued excise taxes related to repurchases of common stock	3,283	1,627

See accompanying notes to the condensed consolidated financial statements.

Table of Contents 9

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

Note 1. General

The Company. Deckers Outdoor Corporation and its consolidated subsidiaries (collectively, the Company) is a

global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for

both everyday casual lifestyle use and high-performance activities. The Company markets its products primarily

under three proprietary brands: HOKA, UGG, and Teva.

The Company’s brands compete across the fashion and casual lifestyle, performance, running, and outdoor

markets. The Company sells its products through quality domestic and international retailers and international

distributors in its wholesale channel, and directly to global consumers through its Direct-to-Consumer (DTC)

channel, which is comprised of an e-commerce and retail store presence. Management seeks to differentiate the

Company’s brands and products by offering diverse lines that emphasize fashion, performance, authenticity,

functionality, quality, and comfort, and products tailored to a variety of activities, seasons, and demographic groups.

Independent third-party contractors manufacture all of the Company’s products (independent manufacturers).

Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes

thereto (referred to herein as condensed consolidated financial statements) as of June 30, 2026, and for the three

months ended June 30, 2026 (current period), and 2025 (prior period) are prepared in accordance with generally

accepted accounting principles in the US (US GAAP) for interim financial information pursuant to Rule 10-01 of

Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all

the information and disclosures required by US GAAP for annual financial statements and accompanying notes

thereto. The condensed consolidated balance sheet as of March 31, 2026, is derived from the Company’s audited

consolidated financial statements. In the opinion of management, the condensed consolidated financial statements

include all normal and recurring entries necessary to fairly present the results of the interim periods presented but

are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The

condensed consolidated financial statements should be read in conjunction with the audited consolidated financial

statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal

year ended March 31, 2026 (prior fiscal year), which was filed with the SEC on May 22, 2026 (2026 Annual Report).

Consolidation. The condensed consolidated financial statements include the accounts of the Company and its

wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Reportable Operating Segments. As of June 30, 2026, the Company’s three reportable operating segments include

the worldwide operations of the HOKA brand, UGG brand, and Other brands (primarily consisting of the Teva brand)

(collectively, the Company’s reportable operating segments). The Other brands reportable operating segment

includes historical results of brands for which standalone operations have been phased out in the prior fiscal year as

described in Note 1, “General,” within the section titled “Reportable Operating Segments” in the Company’s

consolidated financial statements in Part IV of the 2026 Annual Report.

Refer to Note 10, “Reportable Operating Segments,” for further information on the Company’s reportable operating

segments.

Use of Estimates. The preparation of the Company’s condensed consolidated financial statements in accordance

with US GAAP requires management to make estimates and assumptions that affect the amounts reported.

Management bases these estimates and assumptions upon historical experience, existing and known

circumstances, authoritative accounting pronouncements, and other factors it believes to be reasonable. In addition,

management has considered the potential impact of macroeconomic and geopolitical factors on its business and

results of operations, including inflationary pressures, increased tariffs, the potential for refunds of previously paid

tariffs, rising supply chain costs, high interest rates, foreign currency exchange rate volatility, escalating global

conflicts, changes in discretionary spending, and recession risks. Although the full impact of these factors, including

the amount, timing, and realization of any tariff refunds, is unknown, the Company believes it has made appropriate

accounting estimates and assumptions based on the facts and circumstances available as of the reporting date.

Table of Contents 10

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

However, actual results could differ materially from these estimates and assumptions, which may result in material

effects on the Company’s financial condition, results of operations, and liquidity. Refer to Note 1, “General,” in the

Company’s consolidated financial statements in Part IV of the 2026 Annual Report for further information on the

significant areas requiring the use of management estimates and assumptions.

Foreign Currency Translation. The Company considers the US dollar to be its functional currency. The Company’s

wholly owned foreign subsidiaries have various assets and liabilities, primarily cash, receivables, and payables,

which are denominated in currencies other than its functional currency. The Company remeasures these monetary

assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses

that are recorded in selling, general, and administrative (SG&A) expenses in the condensed consolidated

statements of comprehensive income as incurred. In addition, the Company translates assets and liabilities of

subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at the end of

the reporting period, which results in financial statement translation gains and losses recorded in other

comprehensive income or loss (OCI), net of tax, in the condensed consolidated statements of comprehensive

income.

Seasonality. A significant part of the UGG brand’s business has historically been seasonal, with the highest

percentage of net sales occurring in the third fiscal quarter, which has contributed to variation in results of

operations from quarter to quarter. However, as the HOKA brand’s net sales have increased as a percentage of

aggregate net sales, the impacts of seasonality have been partially mitigated as HOKA brand sales are generally

more evenly distributed throughout the fiscal year. However, quarterly results may fluctuate based on, among other

things, the timing of product launches, customer demand, inventory management decisions, and the timing of

product shipments, including impacts from changes in third-party logistics providers and other distribution network

initiatives. This trend is expected to continue. In addition, the Company has further mitigated the impacts of

seasonality by diversifying and expanding its year-round product offerings across its brands.

Recent Accounting Pronouncements. Other than outlined below, there have been no developments with respect

to recently issued accounting standards (ASUs) relative to those disclosed in the 2026 Annual Report, including the

expected dates of adoption and impact on disclosures in the Company’s annual consolidated financial statements

and interim condensed consolidated financial statements.


Standard	Description	Impact on Adoption
ASU 2025-05 - Measurement of Credit Losses for Accounts Receivable and Contract Assets	This ASU provides a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses on trade accounts receivable and contract assets. This ASU is effective on a prospective basis for fiscal years beginning after December 15, 2025. Early adoption is permitted.	The ASU was effective for the Company as of April 1, 2026, but the Company did not elect the practical expedient, as such, this ASU did not impact the Company’s interim condensed consolidated financial statements.

Table of Contents 11

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

Note 2. Revenue Recognition and Business Concentrations

Disaggregated Revenue. Refer to Note 10, “Reportable Operating Segments,” for further information on the

Company’s disaggregation of revenue by reportable operating segments.

Channel Concentration. Net sales by channel were as follows:


	Three Months Ended June 30,
	2026	2025
Wholesale	$666,714	$652,364
Direct-to-Consumer	352,817	312,174
Total	$1,019,531	$964,538

Geographic Concentration. Net sales by geography were as follows:


	Three Months Ended June 30,
	2026	2025
Domestic	$517,428	$501,258
International	502,103	463,280
Total	$1,019,531	$964,538

Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a

refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded

in other current assets and the related refund liability is recorded in other accrued expenses in the condensed

consolidated balance sheets.

The following tables summarize changes in the estimated sales returns for the periods presented:


	Sales Return Asset	Sales Return Liability
Balance, March 31, 2026	$27,729	$(80,055)
Net additions to sales return liability (1)	7,415	(39,046)
Actual returns	(16,619)	60,420
Balance, June 30, 2026	$18,525	$(58,681)


	Sales Return Asset	Sales Return Liability
Balance, March 31, 2025	$21,120	$(63,462)
Net additions to sales return liability (1)	7,369	(40,888)
Actual returns	(13,556)	55,508
Balance, June 30, 2025	$14,933	$(48,842)

(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual

return rights and discretionary authorized returns.

Table of Contents 12

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated

balance sheets and include loyalty programs and other deferred revenue.

Loyalty Programs. Activity related to loyalty programs was as follows:


	Three Months Ended June 30,
	2026	2025
Beginning balance	$(21,000)	$(18,566)
Redemptions and expirations for loyalty certificates and points recognized in net sales	6,066	4,994
Deferred revenue for loyalty points and certificates issued	(4,982)	(4,205)
Ending balance	$(19,916)	$(17,777)

Deferred Revenue. Activity related to deferred revenue was as follows:


	Three Months Ended June 30,
	2026	2025
Beginning balance	$(30,139)	$(27,305)
Additions of customer cash payments	(28,424)	(27,176)
Revenue recognized	29,029	25,573
Ending balance	$(29,534)	$(28,908)

Refer to Note 2, “Revenue Recognition and Business Concentrations,” in the Company’s consolidated financial

statements in Part IV of the 2026 Annual Report for further information on the Company’s variable consideration

accounting policies, including sales return asset and liability, as well as contract liabilities.

Note 3. Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis. Refer to Note 4,

“Fair Value Measurements,” in the Company’s consolidated financial statements in Part IV of the 2026 Annual

Report for further information on the Company’s fair value accounting policies.

Assets and liabilities that are measured on a recurring basis at fair value in the condensed consolidated balance

sheets are as follows:


	As of	Measured Using
	June 30, 2026	Level 1	Level 2	Level 3
Assets:
Cash equivalents:
Money-market funds	$1,108,291	$1,108,291	$—	$—
Other current assets:
Designated Derivative Contracts asset	10,977	—	10,977	—
Other assets:
Non-qualified deferred compensation asset	27,483	27,483	—	—
Total assets measured at fair value	$1,146,751	$1,135,774	$10,977	$—

Table of Contents 13

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)


	As of	Measured Using
	June 30, 2026	Level 1	Level 2	Level 3
Liabilities:
Other accrued expenses:
Non-qualified deferred compensation liability	$(2,696)	$(2,696)	$—	$—
Other long-term liabilities:
Non-qualified deferred compensation liability	(36,626)	(36,626)	—	—
Total liabilities measured at fair value	$(39,322)	$(39,322)	$—	$—


	As of	Measured Using
	March 31, 2026	Level 1	Level 2	Level 3
Assets:
Cash equivalents:
Money-market funds	$1,462,683	$1,462,683	$—	$—
Other current assets:
Designated Derivative Contracts asset	7,316	—	7,316	—
Non-Designated Derivative Contracts asset	370	—	370	—
Other assets:
Non-qualified deferred compensation asset	22,845	22,845	—	—
Total assets measured at fair value	$1,493,214	$1,485,528	$7,686	$—
Liabilities:
Other accrued expenses:
Non-qualified deferred compensation liability	$(2,407)	$(2,407)	$—	$—
Other long-term liabilities:
Non-qualified deferred compensation liability	(29,291)	(29,291)	—	—
Total liabilities measured at fair value	$(31,698)	$(31,698)	$—	$—

The fair value of Designated Derivative Contracts and Non-Designated Derivative Contracts is determined by using

quoted market prices of the same or similar instruments, including spot and forward currency exchange rates,

adjusted for counterparty exposure and the Company’s own credit risk, if any. Refer to Note 7, “Derivative

Instruments,” for further information, including the definition of the terms Designated Derivative Contracts and Non-

Designated Derivative Contracts.

Table of Contents 14

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

Note 4. Income Taxes

Income tax expense and the effective income tax rate were as follows:


	Three Months Ended June 30,
	2026	2025
Income tax expense	$39,078	$43,863
Effective income tax rate	23.1%	24.0%

The tax provisions during the three months ended June 30, 2026, and 2025, were computed using the estimated

effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the current fiscal

year ending March 31, 2027 (current fiscal year), and prior fiscal year, respectively, and were adjusted for discrete

items that occurred within the periods presented above.

During the three months ended June 30, 2026, the net change in the effective income tax rate, compared to the

prior period, was primarily due to non-recurring discrete tax expense for unrecognized tax benefits in the prior

period and changes in jurisdictional mix of worldwide income before taxes.

Note 5. Leases

The Company enters into operating lease contracts, which primarily relate to retail stores, showrooms, offices, and

distribution facilities. There were no material changes outside the ordinary course of business during the three

months ended June 30, 2026, to the Company’s operating lease terms disclosed in the 2026 Annual Report.

Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to

operating leases was as follows:


	Three Months Ended June 30,
	2026	2025
Non-cash operating activities (1)
Operating lease assets obtained in exchange for lease liabilities	$120,130	$45,271
Reductions to operating lease assets for reductions to lease liabilities	(157)	(2,652)

(1) Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements, as well as adjustments for

tenant improvement allowances. Non-cash additions in the current period are primarily the result of a lease extension for a

warehouse and DC, as well as continued investments in the Company’s global retail store footprint and showrooms.

Note 6. Commitments and Contingencies

Purchase Obligations. There were no material changes outside the ordinary course of business during the three

months ended June 30, 2026, to the Company’s purchase obligations disclosed in the 2026 Annual Report.

Contingencies. Except as noted below, there were no material changes outside the ordinary course of business

during the three months ended June 30, 2026, to the Company’s contingencies disclosed in Note 8, “Commitments

and Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2026 Annual Report.

Tariff Refunds. In February 2026, the US Supreme Court invalidated tariffs imposed under the International

Emergency Economic Power Act (IEEPA). In March 2026, the US Court of International Trade subsequently issued

an order directing US Customs and Border Protection (CBP) to refund IEEPA tariffs that were previously collected.

In April 2026, CBP released the Consolidated Administration and Processing Entries (CAPE) functionality to

facilitate a phased approach to process IEEPA tariff refunds. Subsequent to June 30, 2026, the Company began

Table of Contents 15

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

filing for refunds of previously paid IEEPA tariffs pursuant to the CAPE Phase 2 administrative refund process

announced in June 2026.

The Company previously paid an aggregate gross amount of approximately $120,000 in IEEPA tariffs. The net effect

that any tariff refunds may have on the Company’s condensed consolidated financial statements may be less than

the gross amount of IEEPA tariffs as a result of a number of factors, including accommodations provided under cost-

sharing arrangements with independent manufacturers, income taxes payable on refunds received, and other

relevant factors. In addition, the amount and timing of receipt of refunds are subject to uncertainty as a result of

potential changes in the CBP claims process, and further legal challenges to current and proposed tariff regimes.

The Company will apply a gain contingency model in accordance with Accounting Standards Codification Topic 450,

Contingencies, to account for potential refunds of previously paid tariffs. Under this model, a gain contingency is not

recognized in the condensed consolidated financial statements until the gain is realized or realizable. If tariff refunds

are ultimately received or otherwise become realizable, the Company will evaluate the appropriate accounting

treatment under US GAAP based on the facts and circumstances existing at that time, including the nature of the

recovery, applicable tax impacts, cost-sharing or other arrangements with independent manufacturers, and other

relevant factors. The Company may also consider such developments in connection with future business decisions.

As of June 30, 2026, and as of the date of this Quarterly Report, the Company has not recognized any receivable

and corresponding reduction to cost of sales related to any IEEPA tariff refunds or related interest in its condensed

consolidated financial statements. The Company continues to closely monitor these developments and assess the

potential impact on its condensed consolidated financial statements.

The Company was named as a defendant in two purported consumer class actions relating to alleged tariff-related

pricing actions and potential governmental tariff reimbursements. The Company intends to defend these matters

vigorously.

Note 7. Derivative Instruments

The Company enters into foreign currency forward or option contracts (derivative contracts) to manage foreign

currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales

(Designated Derivative Contracts). The Company also enters into derivative contracts that are not designated as

cash flow hedges, to offset a portion of anticipated gains and losses on certain intercompany balances until the

expected time of repayment (Non-Designated Derivative Contracts). Refer to Note 1, “General,” in the Company’s

consolidated financial statements in Part IV of the 2026 Annual Report for further information related to accounting

policies on the Company’s derivative contracts.

As of June 30, 2026, the Company has the following Designated Derivative Contracts recorded at fair value in the

condensed consolidated balance sheets and had no outstanding Non-Designated Derivative Contracts:


Notional value	$376,451
Fair value recorded in other current assets	10,977

As of March 31, 2026, the Company has the following derivative contracts recorded at fair value in the condensed

consolidated balance sheets:


	Designated Derivative Contracts	Non-Designated Derivative Contracts	Total
Notional value	$337,183	$18,343	$355,526
Fair value recorded in other current assets	7,316	370	7,686

Table of Contents 16

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

The maximum amount of loss the Company would incur if derivative counterparties failed completely to perform

according to the terms of the contracts is limited to the derivative gross fair value of contracts in asset positions. The

non-performance risk of the Company and its counterparties did not have a material impact on the fair value of its

derivative contracts. As of June 30, 2026, unrealized gains on derivative contracts recorded in accumulated other

comprehensive loss (AOCL) are expected to be reclassified into net sales within the next nine months. Refer to

Note 8, “Stockholders’ Equity,” for further information on the components of AOCL.

The following table summarizes changes in unrealized gain (loss) on cash flow hedges included in AOCL, including

the effect of Designated Derivative Contracts and the related income tax effects of unrealized gains or losses that

are recorded in OCI in the condensed consolidated statements of comprehensive income:


	Three Months Ended June 30,
	2026	2025
Beginning balance	$5,564	$1,584
Gain (loss) recorded in OCI	3,931	(27,309)
(Loss) gain reclassified into net sales	(271)	535
Income tax (expense) benefit in OCI	(882)	6,565
Ending balance	$8,342	$(18,625)

Note 8. Stockholders’ Equity

Stock Repurchase Program (amounts in thousands, except share and per share data). The Company’s Board of

Directors (Board) has approved a stock repurchase program which authorizes the Company to repurchase shares

of its common stock in the open market or in privately negotiated transactions, subject to market conditions,

applicable legal requirements, and other factors (collectively, the stock repurchase program). The Board last

approved an additional authorization of $3,500,000 on May 20, 2026, to repurchase shares of the Company’s

common stock under the same conditions as the prior stock repurchase program. As of June 30, 2026, the

aggregate remaining authorization under the stock repurchase program is $4,711,416.

The stock repurchase program does not obligate the Company to acquire any amount of common stock and may be

suspended at any time at the Company’s discretion. The credit agreements governing the Company’s revolving

credit facilities allow it to make stock repurchases under this program, so long as it does not exceed certain

leverage ratios. As of June 30, 2026, the Company has not exceeded the stated leverage ratios, and no defaults

have occurred under these credit agreements.

Stock repurchase activity under the stock repurchase program was as follows:


	Three Months Ended June 30,
	2026	2025
Total number of shares repurchased (1)	3,258,352	1,665,902
Weighted average price per share	$103.79	$109.84
Dollar value of shares repurchased (2) (3)	$338,186	$182,991

(1) All share repurchases were made pursuant to the stock repurchase program in open-market transactions.

(2) May not calculate on rounded amounts.

(3) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs.

Subsequent to June 30, 2026, through July 9, 2026, the Company repurchased 311,264 shares of its common stock

at a weighted average price of $103.35 per share for $32,168. As of July 9, 2026, the Company had $4,679,248

remaining authorized for repurchases under the stock repurchase program.

Table of Contents 17

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

Accumulated Other Comprehensive Loss. The components within AOCL, net of tax, recorded in the condensed

consolidated balance sheets, are as follows:


	June 30, 2026	March 31, 2026
Unrealized gain on cash flow hedges	$8,342	$5,564
Cumulative foreign currency translation loss	(40,974)	(41,483)
Total	$(32,632)	$(35,919)

Note 9. Basic and Diluted Shares

The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:


	Three Months Ended June 30,
	2026	2025
Basic	138,263	149,344
Dilutive effect of equity awards	296	291
Diluted	138,559	149,635

Excluded
Time-Based Restricted Stock Units	11	60
Long-Term Incentive Plan Performance-Based Stock Units	253	155
Deferred Non-Employee Director Equity Awards	6	5
Employee Stock Purchase Plan	1	4

Excluded Awards. The equity awards excluded from the calculation of the dilutive effect may be excluded due to

one of the following: (1) the shares were antidilutive or (2) the necessary conditions had not been satisfied for the

shares to be deemed issuable based on the Company’s performance for the relevant performance period. The

number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to

these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to

be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and

may be materially lower than the number of shares presented, which could result in a lower dilutive effect. Refer to

Note 9, “Stock-Based Compensation,” in the Company’s consolidated financial statements in Part IV of the 2026

Annual Report for further information on the Company’s equity incentive plans.

Note 10. Reportable Operating Segments

There have been no changes to the Company’s reportable operating segments, the measure of segment profit or

loss, or the basis of measurement from those disclosed in Note 13, “Reportable Operating Segments,” in the

Company’s consolidated financial statements in Part IV of the 2026 Annual Report. Accordingly, information

reported to the Chief Operating Decision Maker (CODM), who is the Principal Executive Officer (PEO), continues to

be organized into three reportable operating segments: HOKA brand, UGG brand, and Other brands.

The CODM continues to evaluate reportable operating segment performance and allocate resources based on net

sales, gross profit as a percentage of net sales (gross margin), and income from operations, which includes costs

directly attributable to each reportable operating segment that are regularly reviewed by the CODM. Segment

income from operations excludes unallocated enterprise and shared brand expenses, as well as total other income,

net. There is no inter-segment sales for any period presented.

Table of Contents 18

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

The accounting policies applicable to the Company’s reportable operating segments are consistent with those

described in Note 1, “General,” in the Company’s consolidated financial statements in Part IV of the 2026 Annual

Report. The CODM does not regularly review total assets or capital expenditures by reportable operating segment.

Reportable operating segment information, with a reconciliation to the condensed consolidated statements of

comprehensive income, was as follows:


Three Months Ended June 30, 2026	HOKA	UGG	Other Brands	Total
Net sales	$703,538	$278,049	$37,944	$1,019,531
Less: Cost of sales	301,124	125,297	17,947	444,368
Segment gross profit	402,414	152,752	19,997	575,163
Segment gross margin	57.2%	54.9%	52.7%	56.4%
Less:
Payroll and related costs	36,148	36,096	4,758	77,002
Advertising, marketing, and promotion expenses	62,248	22,810	7,042	92,100
Rent and occupancy	12,919	19,296	4	32,219
Depreciation and other related costs (1)	2,662	3,382	163	6,207
Other segment items (2)	32,969	17,154	1,488	51,611
Segment SG&A expenses	146,946	98,738	13,455	259,139
Segment income from operations	$255,468	$54,014	$6,542	$316,024
Segment operating margin (3)	36.3%	19.4%	17.2%	31.0%


Three Months Ended June 30, 2025	HOKA	UGG	Other Brands (4)	Total
Net sales	$653,119	$265,092	$46,327	$964,538
Less: Cost of sales	276,172	125,768	24,692	426,632
Segment gross profit	376,947	139,324	21,635	537,906
Segment gross margin	57.7%	52.6%	46.7%	55.8%
Less:
Payroll and related costs	28,508	32,865	4,532	65,905
Advertising, marketing, and promotion expenses	55,988	19,568	6,208	81,764
Rent and occupancy	9,046	17,217	38	26,301
Depreciation and other related costs (1)	1,473	2,957	39	4,469
Other segment items (2)	28,404	12,734	3,065	44,203
Segment SG&A expenses	123,419	85,341	13,882	222,642
Segment income from operations	$253,528	$53,983	$7,753	$315,264
Segment operating margin (3)	38.8%	20.4%	16.7%	32.7%

(1) Depreciation and other related costs generally include depreciation of property and equipment, amortization and impairment of

intangible assets or other long-lived assets, accretion, loss on disposal of assets, and other miscellaneous costs.

(2) Other segment items are comprised of other SG&A expenses, which primarily include credit card fees, sales commissions,

materials and supplies, travel, certain 3PL service fees, and other miscellaneous expenses.

(3) Operating margin is defined as income from operations divided by net sales.

(4) The Other brands reportable operating segment for the prior period includes financial results for the phase out of the

Koolaburra brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of the

Company’s consolidated financial statements in the 2026 Annual Report for further information.

Table of Contents 19

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2026, and 2025

(amounts in thousands, except per share data)

A reconciliation of reportable segment income from operations to condensed consolidated statements of

comprehensive income was as follows:


	Three Months Ended June 30,
	2026	2025
Segment income from operations	$316,024	$315,264
Unallocated enterprise and shared brand expenses (1)	(160,723)	(149,977)
Total other income, net	13,749	17,779
Consolidated income before income taxes	$169,050	$183,066

(1) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, they are recorded in

unallocated enterprise and shared brand expenses, which are costs that are managed centrally and not specific to any one

brand.

Table of Contents 20

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read together with our

condensed consolidated financial statements and the related notes included in Part I, Item 1, “Financial

Statements,” within this Quarterly Report, and the audited consolidated financial statements included in Part II, Item

8, “Financial Statements and Supplementary Data,” of our 2026 Annual Report, filed with the SEC on May 22, 2026,

which is available free of charge on the SEC’s website at www.sec.gov and our website at ir.deckers.com.

Certain statements made in this section constitute “forward-looking statements,” which are subject to numerous

risks and uncertainties. Our actual results of operations may differ materially from those expressed or implied by

these forward-looking statements as a result of many factors, including those set forth in the section titled

“Cautionary Note Regarding Forward-Looking Statements” and Part II, Item 1A, “Risk Factors,” within this Quarterly

Report.

Overview

We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories

developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily

under three proprietary brands: HOKA, UGG, and Teva.

Our brands compete across the fashion and casual lifestyle, performance, running, and outdoor markets. We

believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through

quality domestic and international retailers and international distributors in our wholesale channel, and directly to

global consumers through our DTC channel, which is comprised of an e-commerce and retail store presence. We

seek to differentiate our brands and products by offering diverse lines that emphasize fashion, performance,

authenticity, functionality, quality, and comfort, and products tailored to a variety of activities, seasons, and

demographic groups.

Financial Highlights

Consolidated financial performance highlights for the three months ended June 30, 2026, compared to the prior

period, were as follows:

•Net sales increased 5.7% to $1,019,531.

◦Brand

▪HOKA brand net sales increased 7.7% to $703,538.

▪UGG brand net sales increased 4.9% to $278,049.

▪Other brands net sales decreased 18.1% to $37,944.

◦Channel

▪Wholesale channel net sales increased 2.2% to $666,714.

▪DTC channel net sales increased 13.0% to $352,817.

◦Geography

▪Domestic net sales increased 3.2% to $517,428.

▪International net sales increased 8.4% to $502,103.

•Gross margin increased 60 basis points to 56.4%.

•SG&A expenses increased 12.7% to $419,862.

•Income from operations decreased 6.0% to $155,301.

•Income from operations as a percentage of net sales (operating margin) decreased 190 basis

points to 15.2%.

•Diluted earnings per share increased 1.1% to $0.94 per share.

Table of Contents 21

Trends and Uncertainties Impacting our Business and Industry

Macroeconomic and Geopolitical Factors. We continue to be exposed to risks from evolving trade policies,

including existing and proposed tariffs, and other restrictions, affecting goods imported from certain regions where

we have a concentration of sourcing and manufacturing. There is significant uncertainty regarding the duration and

scope of current and proposed tariff regimes, as well as the amount and timing of receipt of refunds of previously

paid IEEPA tariffs. While we continue to pursue mitigation strategies, we do not expect these efforts to fully offset

the incremental impact of tariffs we expect to incur during the current fiscal year, excluding the impact of any

potential refunds of IEEPA tariffs.

We previously paid an aggregate gross amount of approximately $120,000 in IEEPA tariffs, for which we have

begun filing for refunds. The net effect that any tariff refunds may have on our condensed consolidated financial

statements may be less than the gross amount of IEEPA tariffs as a result of a number of factors, including

accommodations provided under cost-sharing arrangements with our independent manufacturers, income taxes

payable on refunds received, and other relevant factors. As of the date of this Quarterly Report, we have not

recognized any IEEPA tariff refunds or related interest in our condensed consolidated financial statements. If tariff

refunds are ultimately received or otherwise become realizable, such developments may affect our future results of

operations and cash flows and may be considered in connection with future business decisions. Refer to Part I, Item

1, Note 6, “Commitments and Contingencies,” within this Quarterly Report for further information on the IEEPA tariff

refunds.

Other Factors. Our business and industry are subject to several additional important trends and uncertainties,

which have not materially changed from those described in our 2026 Annual Report. Refer to Part II, Item 7,

“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2026 Annual

Report for further discussion. Refer to Part I, Item 1A, “Risk Factors,” of our 2026 Annual Report for detailed

information on the risks and uncertainties that may cause our actual results to differ materially from our

expectations.

Reportable Operating Segments Overview

As of June 30, 2026, our three reportable operating segments include the worldwide operations of the HOKA brand,

UGG brand, and Other brands.

HOKA Brand. The HOKA brand is an authentic premium line of year-round performance footwear, which offers

enhanced cushioning and inherent stability with minimal weight. Originally designed for ultra-runners, the brand now

appeals to world champions, tastemakers, and everyday athletes. Expansion into additional product categories,

elevated marketing campaigns, and investments in brand experiences, coupled with strategic marketplace

presence; have fueled both domestic and international sales growth of the HOKA brand, which has quickly become

a leading brand within run and outdoor specialty wholesale accounts and is growing across its global marketplace.

The HOKA brand’s product line includes running, trail, hiking, fitness, and lifestyle footwear offerings, as well as

apparel and accessories.

UGG Brand. The UGG brand is one of the most iconic and recognized footwear brands in our industry, which

highlights our successful track record of building niche brands into lifestyle and fashion market leaders. Born on the

California coast to warm surfers after they caught and rode the waves, we create iconic products and experiences

that are made for people to feel comfort, softness, warmth, and confidence. With loyal consumers around the world,

innovative products, and elevated storytelling, the UGG brand has proven to be a highly resilient consumer-focused

line of premium footwear, apparel, and accessories that has driven both domestic and international sales growth

with year-round product offerings that appeal to a growing global audience and a broad demographic.

Other Brands. Other brands consist primarily of the Teva brand. The Teva brand’s products are built for a range of

outdoor pursuits and include a variety of footwear options, from classic sandals and shoes to boots.

The Other brands reportable operating segment includes financial results of brands for which standalone operations

have been phased out in the prior fiscal year as described in the section titled “Reportable Operating Segment

Overview,” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of

Operations,” of our 2026 Annual Report.

Table of Contents 22

Use of Non-GAAP Financial Measures

We disclose supplemental financial measures calculated and presented in accordance with US GAAP; however,

throughout this Quarterly Report, including within our condensed consolidated financial statements, we provide

certain financial information on a non-GAAP basis (non-GAAP financial measures). We provide non-GAAP financial

measures and information that may assist investors in understanding our results of operations and assessing our

prospects for future performance, which primarily consist of certain constant currency measures and total segment-

level financial information.

We believe presenting certain financial and operating measures on a constant currency basis is important as it

excludes the impact of foreign currency exchange rate fluctuations that are not indicative of our core results of

operations and are largely outside of our control. We calculate our constant currency non-GAAP financial measures

for current period financial information, such as total net sales using the foreign currency exchange rates that were

in effect during the previous comparable period, excluding the effects of foreign currency exchange rate hedges and

remeasurements in the condensed consolidated financial statements. We also report comparable DTC sales on a

constant currency basis for DTC operations that were open throughout the current and prior reporting periods, and

we may adjust prior reporting periods to conform to current period accounting policies. The information presented

on a constant currency basis, as we present such information, may not necessarily be comparable to similarly titled

information presented by other companies, and may not be appropriate measures for comparing our performance

relative to other companies. Constant currency measures should not be considered in isolation, or as an alternative

to US dollar measures that reflect current period foreign currency exchange rates or to other financial or operating

measures presented in accordance with US GAAP.

We believe presenting certain segment-level operating measures, including total segment income from operations

and total segment SG&A expenses, is important because it allows for an evaluation of operating performance and

cost structure across brands. Our segment-level non-GAAP financial measures represent the results of operations

and expenses for our individual reportable operating segments and differ from our consolidated results because

they exclude certain unallocated enterprise and shared brand expenses. Our segment-level non-GAAP financial

measures should not be considered in isolation, or as an alternative to consolidated financial and operating

measures presented in accordance with US GAAP.

Seasonality

Refer to Note 1, “General,” of our condensed consolidated financial statements in Part I, Item 1 within this Quarterly

Report and to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of

Operations,” of our 2026 Annual Report for further information regarding the impacts of seasonality on our business.

Table of Contents 23

Results of Operations

Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025. Results of operations

were as follows:


	Three Months Ended June 30,
	2026		2025		Change
	Amount	% (1)	Amount	% (1)	Amount	%
Net sales	$1,019,531	100.0%	$964,538	100.0%	$54,993	5.7%
Cost of sales	444,368	43.6	426,632	44.2	(17,736)	(4.2)
Gross profit	575,163	56.4	537,906	55.8	37,257	6.9
Selling, general, and administrative expenses	419,862	41.2	372,619	38.7	(47,243)	(12.7)
Income from operations	155,301	15.2	165,287	17.1	(9,986)	(6.0)
Total other income, net	(13,749)	(1.3)	(17,779)	(1.9)	(4,030)	(22.7)
Income before income taxes	169,050	16.6	183,066	19.0	(14,016)	(7.7)
Income tax expense	39,078	3.8	43,863	4.6	4,785	10.9
Net income	129,972	12.7	139,203	14.4	(9,231)	(6.6)
Total other comprehensive income (loss), net of tax	3,287	0.3	(8,435)	(0.8)	11,722	139.0
Comprehensive income	$133,259	13.1%	$130,768	13.6%	$2,491	1.9%
Net income per share
Basic	$0.94		$0.93		$0.01	1.1%
Diluted	$0.94		$0.93		$0.01	1.1%

(1) May not calculate on rounded amounts.

Net Sales. Net sales by brand, channel, and geography were as follows:


	Three Months Ended June 30,
	2026	2025	Change
	Amount	Amount	Amount	%
Net sales by brand
HOKA brand
Wholesale	$446,763	$434,206	$12,557	2.9%
Direct-to-Consumer	256,775	218,913	37,862	17.3
Total	703,538	653,119	50,419	7.7
UGG brand
Wholesale	194,218	185,817	8,401	4.5
Direct-to-Consumer	83,831	79,275	4,556	5.7
Total	278,049	265,092	12,957	4.9
Other brands (1)
Wholesale	25,733	32,341	(6,608)	(20.4)
Direct-to-Consumer	12,211	13,986	(1,775)	(12.7)
Total	37,944	46,327	(8,383)	(18.1)
Total (1)	$1,019,531	$964,538	$54,993	5.7%

Table of Contents 24


	Three Months Ended June 30,
	2026	2025	Change
	Amount	Amount	Amount	%
Net sales by channel
Total Wholesale	$666,714	$652,364	$14,350	2.2%
Total Direct-to-Consumer	352,817	312,174	40,643	13.0
Total (1)	$1,019,531	$964,538	$54,993	5.7%
Net sales by geography
Domestic	$517,428	$501,258	$16,170	3.2%
International	502,103	463,280	38,823	8.4
Total (1)	$1,019,531	$964,538	$54,993	5.7%

(1) The Other brands reportable operating segment for the prior period includes financial results for the phase out of the

Koolaburra brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our

consolidated financial statements in our 2026 Annual Report for further information.

Total net sales increased primarily due to higher net sales for the HOKA brand and UGG brand, partially offset by

lower net sales for the Other brands. Drivers of significant changes in net sales, compared to the prior period, were

as follows:

•Net sales of the HOKA brand increased primarily due to higher global net sales across both

channels, with diverse product adoption in the DTC channel, led by growth in our international

market as well as our domestic market. Wholesale channel growth was driven by higher sell-in in

the domestic market, partially offset by lower wholesale channel international net sales due to

planned shipment timing differences primarily from the transition of our European 3PL in the prior

period.

•Net sales of the UGG brand increased primarily due to higher global net sales largely balanced

across both channels, with international sales leading growth, supported by higher domestic sales.

This collective growth was driven by continued adoption for key franchises within our year-round

product offerings.

•Net sales of the Other brands decreased primarily due to the phase out of standalone operations of

the Koolaburra brand in the prior fiscal year, as well as lower domestic net sales for the Teva brand

as it refocuses its wholesale distribution with outdoor and premium retailers.

Supplemental Disclosure

•On a constant currency basis, net sales increased by 4.8% compared to the prior period.

•Comparable DTC channel net sales for the 13 weeks ended June 28, 2026, increased by 6.8%,

compared to the prior period.

•We experienced a decrease of 1.4% in the total volume of units sold to 14,500 from 14,700,

compared to the prior period. Units sold include all categories such as footwear, apparel,

accessories, home goods, and care kits across all brands. Percentages may not calculate on

rounded units. The prior period includes units sold by brands phased out in the prior fiscal year.

•As of June 30, 2026, we have a total of 212 global Company-owned retail stores (including 144

UGG brand retail stores and 68 HOKA brand retail stores), compared to a total of 191 global

Company-owned retail stores (including 143 UGG brand retail stores and 48 HOKA brand retail

stores) in the prior period.

Gross Profit. Gross margin increased to 56.4% from 55.8% compared to the prior period, primarily due to favorable

channel mix as DTC revenue growth outpaced wholesale revenue growth, favorable product mix and full-price

selling primarily for the UGG brand, favorable foreign currency exchange rate fluctuations, and better management

of product close-outs; partially offset by the net impact of incremental tariffs on domestic goods sold.

Table of Contents 25

Selling, General, and Administrative Expenses. Drivers of significant net changes in SG&A expenses, compared to

the prior period, were as follows:

•Increased payroll and related costs of approximately $12,500, primarily due to higher headcount led

by the HOKA brand, including for retail stores, along with higher unallocated enterprise and shared

brand expenses. The increase in payroll and related costs was comprised of approximately $11,100

of expenses specific to our brands, as well as approximately $1,400 of higher unallocated

enterprise and shared brand expenses.

•Increased other SG&A expenses of approximately $11,800, primarily due to higher IT expenses and

sales commissions. The increase in other SG&A expenses was comprised of approximately $7,400

of expenses specific to our brands, primarily for the HOKA brand and UGG brand, as well as

approximately $4,400 of unallocated enterprise and shared brand expenses.

•Increased advertising, marketing, and promotion expenses of approximately $10,300, primarily due

to higher promotional marketing expenses for the HOKA brand and UGG brand to drive global

brand awareness and market share gains, highlight new product categories, and provide localized

marketing.

•Increased rent and occupancy of approximately $8,400, primarily due to higher rent expenses

primarily associated with investments in the HOKA brand’s global retail store footprint.

•Increased net foreign currency-related remeasurement losses recorded in unallocated enterprise

and shared brand expenses of approximately $5,800, primarily due to unfavorable changes in

Asian, Canadian, and European foreign currency exchange rates against the US dollar.

Income from Operations. Income (loss) from operations by reportable operating segment was as follows:


	Three Months Ended June 30,
	2026	2025	Change
	Amount	Amount	Amount	%
Income (loss) from operations
HOKA brand	$255,468	$253,528	$1,940	0.8%
UGG brand	54,014	53,983	31	0.1
Other brands (1)	6,542	7,753	(1,211)	(15.6)
Unallocated enterprise and shared brand expenses (2)	(160,723)	(149,977)	(10,746)	(7.2)
Total	$155,301	$165,287	$(9,986)	(6.0)%

(1) The Other brands reportable operating segment for the prior period includes financial results for the phase out of the

Koolaburra brand and AHNU brand. Refer to the section titled “Reportable Operating Segments,” in Note 1, “General,” of our

consolidated financial statements in our 2026 Annual Report for further information.

(2) To the extent that consolidated SG&A expenses exceed reportable operating segment SG&A expenses, the costs are recorded

in unallocated enterprise and shared brand expenses. Refer to Note 10, “Reportable Operating Segments,” of our condensed

consolidated financial statements in Part I, Item 1 within this Quarterly Report for further information.

The decrease in total income from operations, compared to the prior period, was primarily due to higher SG&A

expenses as a percentage of net sales, partially offset by higher gross margins on higher net sales. The significant

driver of net changes in total income from operations, compared to the prior period, were:

•The increase in unallocated enterprise and shared brand expenses was primarily due to higher net

foreign currency-related remeasurement losses, as well as higher other SG&A expenses driven by

IT expenses, partially offset by lower variable 3PL service fees, along with lower depreciation and

related costs.

Total Other Income, Net. The decrease in total other income, net, compared to the prior period, was primarily due to

lower interest income driven by lower interest rates, as well as higher penalties and interest related to unrecognized

tax benefits.

Table of Contents 26

Income Tax Expense. Income tax expense and our effective income tax rate were as follows:


	Three Months Ended June 30,
	2026	2025
Income tax expense	$39,078	$43,863
Effective income tax rate	23.1%	24.0%

The net decrease in our effective income tax rate, compared to the prior period, was primarily due to non-recurring

discrete tax expense for unrecognized tax benefits in the prior period and changes in jurisdictional mix of worldwide

income before taxes.

Net Income. The decrease in net income, compared to the prior period, was due to lower operating margins on

higher net sales. Net income per share increased, compared to the prior period, due to lower weighted-average

common shares outstanding driven by stock repurchases.

Total Other Comprehensive Income (Loss), Net of Tax. The increase in total other comprehensive income, net of

tax, compared to the prior period, was primarily due to higher unrealized gains on derivative contracts, partially

offset by lower foreign currency translation gains relating to changes in the net asset position against European and

Asian foreign currency exchange rates.

Liquidity and Capital Resources

Our liquidity may be impacted by a number of factors, which have not materially changed from those described in

the section titled “Liquidity and Capital Resources” in Part II, Item 7, “Management’s Discussion and Analysis of

Financial Condition and Results of Operations,” as well as in Part I, Item 1A, “Risk Factors,” of our 2026 Annual

Report.

Sources of Liquidity. We finance our working capital and operating requirements using a combination of cash and

cash equivalents balances, cash provided by operating activities, and repatriation of cash. We also have available

borrowing capacity under our revolving credit facilities. We believe our sources of cash and cash equivalents will

provide sufficient liquidity to enable us to meet our working capital requirements and contractual obligations for at

least the next 12 months and will be sufficient to allow us to pursue our business strategies and plans.

Cash and Cash Equivalents. As of June 30, 2026, and March 31, 2026, our cash and cash equivalents balance is

$1,602,589 and $1,907,249, respectively, the majority of which is held in highly rated money market funds and

interest-bearing bank deposit accounts with established national and global financial institutions.

Cash Provided by Operating Activities. For the three months ended June 30, 2026, and 2025, we generated

$47,904 and $36,146, respectively, of cash from operating activities. Refer to the section titled “Cash Flows” below

for further discussion on cash flows generated from ongoing operating activities.

Repatriation of Cash. Our cash repatriation strategy, and by extension, our liquidity, may be impacted by several

additional considerations, which include future changes to, or our interpretations of, global tax law and regulations,

and our actual earnings in various jurisdictions in future periods. During the three months ended June 30, 2026,

$250,000 of cash and cash equivalents was repatriated from an international subsidiary that was previously subject

to income taxes, and no cash and cash equivalents were repatriated during the three months ended June 30, 2025.

As of June 30, 2026, and March 31, 2026, we have $418,535 and $653,924, respectively, of cash and cash

equivalents held by international subsidiaries, a portion of which may be subject to additional foreign withholding

taxes if it were to be repatriated. Refer to Note 5, “Income Taxes,” of our consolidated financial statements in Part IV

of our 2026 Annual Report for further information regarding our cash repatriation strategy.

Table of Contents 27

Revolving Credit Facilities. Information about our revolving credit facilities available as of June 30, 2026, is as

follows:

•Primary Credit Facility. During the three months ended June 30, 2026, we made no borrowings or

repayments and there were no material changes to the terms, to the outstanding letters of credit, or

to the borrowing availability under our unsecured revolving credit facility disclosed in our 2026

Annual Report.

•China Credit Facility. During the three months ended June 30, 2026, we made no borrowings or

repayments and there were no material changes to the terms or to the outstanding bank

guarantees under our credit facility in China disclosed in our 2026 Annual Report.

•Debt Covenants. As of June 30, 2026, we are in compliance with all financial covenants under our

revolving credit facilities.

Refer to Note 6, “Revolving Credit Facilities,” of our consolidated financial statements in Part IV of our 2026 Annual

Report for further information regarding the terms of our revolving credit facilities.

Primary Cash Requirements. Our primary cash requirements include working capital, purchase obligations,

payments to fulfill operating lease obligations, capital expenditures and cloud computing arrangements, and our

stock repurchase program.

Working Capital. Our working capital requirements begin when we purchase materials and inventories and continue

until we collect the resulting trade accounts receivable. A significant portion of the UGG brand’s business has

historically been seasonal, with a higher concentration of net sales in the third fiscal quarter, which contributes to

variability in our working capital requirements and necessitates the use of available cash to build inventory levels in

advance of higher selling seasons. While the impact of seasonality has been partially mitigated by the increasing

contribution of HOKA brand net sales, which are generally more evenly distributed throughout the fiscal year, as well

as by the diversification and expansion of our year-round product offerings across our brands, we expect working

capital requirements to continue to fluctuate period to period.

Purchase Obligations. As of June 30, 2026, there were no material changes outside the ordinary course of business

to the purchase obligations disclosed in Note 8, “Commitments and Contingencies,” of our consolidated financial

statements in Part IV of our 2026 Annual Report. Refer to Note 6, “Commitments and Contingencies,” of our

condensed consolidated financial statements in Part I, Item 1 within this Quarterly Report for further information on

our purchase obligations.

Operating Lease Obligations. As of June 30, 2026, there were no material changes outside the ordinary course of

business to the operating lease obligations disclosed in Note 7, “Leases,” of our consolidated financial statements in

Part IV of our 2026 Annual Report.

Capital Expenditures and Cloud Computing Arrangements. As of June 30, 2026, there were no material changes

outside the ordinary course of business to the capital expenditures and certain implementation costs for cloud

computing arrangements disclosed in the subsection titled “Capital Expenditures and Cloud Computing

Arrangements” within the section titled “Liquidity and Capital Resources” in Part II, Item 7, “Management’s

Discussion and Analysis of Financial Condition and Results of Operations,” of our 2026 Annual Report. Capital

expenditures are recorded to property and equipment, net, in the condensed consolidated balance sheets and in

investing cash flows in the condensed consolidated statements of cash flows. Cloud computing arrangements are

recorded to prepaid expenses and other assets in the condensed consolidated balance sheets and in operating

cash flows in the condensed consolidated statements of cash flows.

Stock Repurchase Program. The Board last approved an additional authorization of $3,500,000 on May 20, 2026, to

repurchase shares of our common stock under the same conditions as our prior stock repurchase program. As of

June 30, 2026, the aggregate remaining authorization under our stock repurchase program is $4,711,416,. Our

stock repurchase program does not obligate us to acquire any amount of common stock and may be suspended at

any time at our discretion. Refer to Note 8, “Stockholders’ Equity,” of our condensed consolidated financial

statements in Part I, Item 1 and to Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds,”

within this Quarterly Report for further information regarding our stock repurchase program.

Table of Contents 28

Cash Flows

The following table summarizes the major components of our condensed consolidated statements of cash flows for

the periods presented:


	Three Months Ended June 30,
	2026	2025	Change
	Amount	Amount	Amount	%
Net cash provided by operating activities	$47,904	$36,146	$11,758	32.5%
Net cash used in investing activities	(15,213)	(23,929)	8,716	36.4
Net cash used in financing activities	(338,477)	(183,228)	(155,249)	(84.7)
Effect of foreign currency exchange rates on cash and cash equivalents	1,126	2,239	(1,113)	(49.7)
Net change in cash and cash equivalents	$(304,660)	$(168,772)	$(135,888)	(80.5)%

Operating Activities. Our primary source of liquidity was net cash provided by operating activities, which was

driven by our net income after non-cash adjustments and changes in operating assets and liabilities.

The increase in net cash provided by operating activities during the three months ended June 30, 2026, compared

to the prior period, was due to $24,837 of favorable changes in operating assets and liabilities partially offset by

$13,079 of unfavorable net income after non-cash adjustments. Changes in operating assets and liabilities were

primarily due to favorable impacts from (1) improved inventory levels reflecting more disciplined inventory

management, including higher beginning inventory levels in the prior fiscal year related to the transition of our

European 3PL; and (2) timing of payments on prepaid expenses and other current assets.

Investing Activities. The decrease in net cash used in investing activities during the three months ended June 30,

2026, compared to the prior period, was primarily due to lower purchases of property and equipment primarily

related to the timing of upgrades to our office facilities completed in the prior fiscal year.

Financing Activities. The increase in net cash used in financing activities during the three months ended June 30,

2026, compared to the prior period, was primarily due to a higher dollar value of stock repurchases.

Critical Accounting Policies and Estimates

The preparation of our condensed consolidated financial statements in accordance with US GAAP requires

management to make estimates and assumptions that affect the amounts reported. Management bases these

estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting

pronouncements, and other factors it believes to be reasonable. In addition, management has considered the

potential impact of macroeconomic and geopolitical factors on our financial condition, results of operations, and

liquidity, including inflationary pressures, increased tariffs, the potential for refunds of previously paid tariffs, rising

supply chain costs, high interest rates, foreign currency exchange rate volatility, escalating global conflicts, changes

in discretionary spending, and recession risks. Although the full impact of these factors, including the amount,

timing, and realization of any tariff refunds, is unknown, management believes it has made appropriate accounting

estimates and assumptions based on the facts and circumstances available as of the reporting date. However,

actual results could differ materially from these estimates and assumptions, which may result in material effects on

our financial condition, results of operations, and liquidity. Refer to Note 1, “General,” of our condensed consolidated

financial statements in Part I, Item 1 within this Quarterly Report, for further discussion of our significant accounting

policies and use of estimates.

There have been no material changes to the critical accounting policies, or to the key estimates and assumptions,

disclosed in the section titled “Critical Accounting Policies and Estimates” in Part II, Item 7, “Management’s

Discussion and Analysis of Financial Condition and Results of Operations,” within our 2026 Annual Report.

Table of Contents 29

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

RISK

In the normal course of business, our financial position and results of operations are subject to a variety of market

risks, including those associated with commodity prices; foreign currency exchange rates; and inflation, and, to a

lesser extent, interest rates, and credit risks. We regularly assess these risks and have established policies and

business practices designed to mitigate their effects. There have been no material changes in our primary risk

exposures or management of market risks since those last disclosed in Part II, Item 7A, “Quantitative and

Qualitative Disclosures About Market Risk,” within our 2026 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures, as defined in Rule 13a-15(e) under the Exchange Act,

which are designed to provide reasonable assurance that information required to be disclosed in the reports that we

file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods

specified in the SEC’s rules and forms. Our disclosure controls and procedures are designed to reasonably ensure

that such information is accumulated and communicated to management, including our PEO and Principal Financial

and Accounting Officer (PFAO), as appropriate, to allow timely decisions regarding required disclosure.

In designing and evaluating our disclosure controls and procedures, our management recognized that any system

of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of

achieving the desired control objectives and management is required to apply its judgment in evaluating the cost-

benefit relationship of possible controls and procedures. In addition, the design of any system of controls is based in

part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design

will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become

inadequate because of changes in conditions, or the degree of compliance with policies or procedures may

deteriorate. Because of the inherent limitations in any system of controls, misstatements due to error or fraud may

occur and not be detected, and controls may be circumvented or overridden.

Under the supervision and with the participation of management, we conducted an evaluation of the effectiveness of

the design and operation of our disclosure controls and procedures as of June 30, 2026. Based on that evaluation,

our PEO and PFAO concluded that our disclosure controls and procedures are effective at a reasonable assurance

level as of June 30, 2026.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified in management’s evaluation

pursuant to Rule 13a-15(d) of the Exchange Act during the three months ended June 30, 2026, that have materially

affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents 30

PART II. OTHER INFORMATION

The following should be read together with the information in Part I, Item 1A, “Risk Factors,” and Item 3, “Legal

Proceedings,” as well as Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and

Issuer Purchases of Equity Securities,” and Item 9B, “Other Information,” of our 2026 Annual Report, filed with the

SEC on May 22, 2026, which is available free of charge on the SEC’s website at www.sec.gov and our website at

ir.deckers.com.

Unless otherwise indicated, all figures herein are expressed in thousands, except for share and per share data.

ITEM 1. LEGAL PROCEEDINGS

As part of our global policing program to protect our intellectual property rights, from time to time, we file lawsuits in

various jurisdictions asserting claims for alleged acts of trademark counterfeiting, trademark infringement, patent

infringement, trade dress infringement, and trademark dilution. We generally have multiple actions such as these

pending at any given point in time. These actions may result in seizure of counterfeit merchandise, out-of-court

settlements with defendants, or other outcomes. In addition, from time to time, we are subject to claims in which

opposing parties will raise, either as affirmative defenses or as counterclaims, the invalidity or unenforceability of

certain of our intellectual property rights, including allegations that the UGG brand trademark registrations and

design patents are invalid or unenforceable. Furthermore, we are aware of many instances throughout the world in

which a third-party is using our brand trademarks within its internet domain name.

From time to time, we are involved in various legal proceedings, disputes, and other claims arising in the ordinary

course of business, including employment, intellectual property, product liability, and breach of contract claims.

Although the results of these ordinary course matters cannot be predicted with certainty, we currently believe that

the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse

effect on our business, results of operations, financial condition, or cash flows. However, regardless of the merit of

the claims raised or the outcome, these ordinary course matters can have an adverse impact on us as a result of

legal costs, diversion of management’s time and resources, and other factors.

ITEM 1A. RISK FACTORS

An investment in our common stock involves risks. Before making an investment decision, you should carefully

consider all the information within Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and

Results of Operations,” as well as in our condensed consolidated financial statements and the related notes

contained in Part I, Item 1 within this Quarterly Report. In addition, you should carefully consider the risks and

uncertainties described in Part I, Item 1A, “Risk Factors,” of our 2026 Annual Report, as well as in our other public

filings with the SEC. If any of the identified risks are realized, our business, results of operations, financial condition,

liquidity, and prospects could be materially and adversely affected. In that case, the trading price of our common

stock may decline, and you could lose all or part of your investment. In addition, other risks of which we are

currently unaware, or which we do not currently view to be material, could have a material adverse effect on our

business, results of operations, financial condition, liquidity, and prospects.

During the three months ended June 30, 2026, there were no material changes to the risks and uncertainties

described in Part I, Item 1A, “Risk Factors,” of our 2026 Annual Report.

Table of Contents 31

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF

PROCEEDS

Unregistered Sales of Equity Securities

None.

Use of Proceeds

Not applicable.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Our Board of Directors (Board) has approved a stock repurchase program which authorizes us to repurchase

shares of our common stock in the open market or in privately negotiated transactions, subject to market conditions,

applicable legal requirements, and other factors (collectively, the stock repurchase program). Our Board last

approved an additional authorization of $3,500,000 on May 20, 2026, to repurchase shares of our common stock

under the same conditions as our prior stock repurchase program. As of June 30, 2026, the aggregate remaining

authorization under our stock repurchase program is $4,711,416.

Our stock repurchase program does not obligate us to acquire any amount of common stock and may be

suspended at any time at our discretion.

Stock repurchase activity under our stock repurchase program during the three months ended June 30, 2026, was

as follows:


	Total Number of Shares Repurchased (1) (2)	Weighted Average Price per Share	Dollar Value of Shares Repurchased (2) (3)	Dollar Value of Shares Remaining for Repurchase (2)
April 1 - April 30, 2026	1,047,701	$105.95	$110,999	$1,438,603
May 1 - May 31, 2026	1,317,560	99.57	131,188	4,807,415
June 1 - June 30, 2026	893,091	107.49	95,999	4,711,416
Total	3,258,352	103.79	$338,186	4,711,416

(1) All share repurchases were made pursuant to our stock repurchase program in open-market transactions.

(2) May not calculate on rounded amounts.

(3) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs.

Subsequent to June 30, 2026, through July 9, 2026, we repurchased 311,264 shares of our common stock at a

weighted average price of $103.35 per share for $32,168. As of July 9, 2026, we had $4,679,248 remaining

authorized for repurchases under the stock repurchase program.

Refer to the section titled “Liquidity” under Part I, Item 2, “Management’s Discussion and Analysis of Financial

Condition and Results of Operations,” and Note 8, “Stockholders’ Equity,” of our condensed consolidated financial

statements in Part I, Item 1 within this Quarterly Report, for further information on our stock repurchase program.

Table of Contents 32

ITEM 5. OTHER INFORMATION

Director and Officer Trading Plans and Arrangements

Our directors and executive officers may enter trading plans or other arrangements with financial institutions to

purchase or sell shares of our common stock. These plans or arrangements may constitute Rule 10b5-1 trading

arrangements or non-Rule 10b5-1 trading arrangements, in each case as defined under Item 408(a) of Regulation

S-K.

During the three months ended June 30, 2026, no Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading

arrangements were adopted, modified, or terminated by our directors or executive officers.

Table of Contents 33

ITEM 6. EXHIBITS

EXHIBIT INDEX


Exhibit Number		Description of Exhibit
*10.1		Third Amendment to Lease, dated June 1, 2026, by and between Duke Realty Limited Partnership and Deckers Outdoor Corporation for distribution center located at 17791 Perris Blvd., Moreno Valley, CA 92551
*#10.2		Form of Change in Control and Severance Agreement
*31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act, adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
*31.2		Certification of Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) under the Exchange Act, adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
**32.1		Certification of Principal Executive Officer and Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended
*101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
*101.SCH		Inline XBRL Taxonomy Extension Schema Document
*101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
*101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
*104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

** Furnished herewith.

# Management contract or compensatory plan or arrangement.

Table of Contents 34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to

be signed on its behalf by the undersigned thereunto duly authorized.

DECKERS OUTDOOR CORPORATION

(Registrant)

/s/ STEVEN J. FASCHING

Steven J. Fasching

Chief Financial Officer

(Principal Financial and Accounting Officer)

Date: July 30, 2026

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