Deckers Brands surpasses 1 billion dollars in Q1 sales as Hoka and Ugg drive growth

US-based footwear conglomerate Deckers Outdoor Corporation (Deckers Brands) has announced its financial results for the first fiscal quarter ended June 30, 2026, delivering record quarterly net sales above 1 billion dollars for the first time in corporate history.

Net sales for the first quarter increased 5.7 percent to 1.02 billion dollars compared to 964.50 million dollars in the same period of the prior financial year. On a constant currency basis, net sales rose 4.8 percent.

Diluted earnings per share grew to 0.94 dollars compared to 0.93 dollars in the prior period.

Deckers Brands president and chief executive officer, Stefano Caroti, said: “Deckers delivered a solid start to the fiscal year, surpassing 1 billion dollars of first quarter revenue for the first time. This performance reflects the continued strength of Hoka and Ugg, with growing global demand as both brands extend their reach through compelling product innovation. As we build deeper connections with consumers across geographies and channels, we remain focused on advancing our premium brands and executing with discipline against our long-term strategies.”

Hoka and Ugg propel divisional performance while direct-to-consumer expands

Performance across the corporate portfolio was anchored by running footwear brand Hoka, where net sales increased 7.7 percent to 703.50 million dollars compared to 653.10 million dollars in the prior period. Lifestyle brand Ugg delivered net sales of 278.00 million dollars, representing a 4.9 percent increase from 265.10 million dollars.

Net sales for other brands within the group fell 18.1 percent to 37.90 million dollars compared to 46.30 million dollars. Management noted that the decline in other brands, alongside lower wholesale and domestic figures, was partially impacted by the planned phase-out of standalone operations for casual footwear line Koolaburra.

Across distribution channels, direct-to-consumer (DTC) delivered a 13 percent increase in net sales to 352.80 million dollars compared to 312.20 million dollars. DTC comparable net sales grew 6.8 percent. Wholesale net sales rose 2.2 percent to 666.70 million dollars compared to 652.40 million dollars.

In geographic regions, international net sales grew 8.4 percent to 502.10 million dollars from 463.30 million dollars. Domestic net sales in the US expanded 3.2 percent to reach 517.40 million dollars compared to 501.30 million dollars.

Gross margin for the quarter reached 56.4 percent compared to 55.8 percent in the previous year. Operating income stood at 155.30 million dollars compared to 165.30 million dollars.

Strong balance sheet enables share buybacks and raised full year guidance

During Q1 FY27, the group repurchased approximately 3.30 million shares of common stock for a total of 338.20 million dollars at a weighted average price of 103.79 dollars per share. As of June 30, 2026, the company maintained approximately 4.70 billion dollars remaining under its share repurchase authorization.

Updated full-year outlook for the twelve-month period ending March 31, 2027 includes net consolidated sales to range between 5.86 billion dollars and 5.91 billion dollars, Hoka net sales to grow by a low-double-digit percentage year-over-year, Ugg net sales to increase by a mid-single-digit percentage, gross margin is anticipated to be slightly better than 56.5 and diluted EPS to a range of 7.35 dollars to 7.50 dollars, representing a 5 cent increase over prior guidance.