Executive Summary
Deckers Outdoor delivered a robust QQ2 2026 performance, with total revenue of $1.431 billion, up 9% year over year, driven by continued strength in the HOKA and UGG brands. HOKA revenue rose 11% and UGG revenue rose 10% in the quarter, contributing to a first-half revenue increase of 12% and solid brand momentum across international markets. Management highlighted a strategically cautious stance for the back half of the year, citing tariff headwinds and a more cautious U.S. consumer environment, while maintaining a long-term growth blueprint centered on expanding both premium brands in international markets and advancing a balanced 50/50 mix between direct-to-consumer (DTC) and wholesale channels. The company reaffirmed FY2026 guidance, targeting ~$5.35 billion in revenue with HOKA in the low-teens growth range and UGG in the low-single to mid-single-digit range, supported by a gross margin of ~56%, SG&A around 34.5% of revenue, and an operating margin near 21.5%. The balance sheet remains exceptionally strong, with $1.41 billion in cash and no outstanding borrowings, and a $2.2 billion share-repurchase program remaining. Near-term risks include tariff dynamics, macro consumer confidence, inflation, FX, and supply chain volatility, but Deckers remains confident in its premium positioning, product cadence, and international expansion to sustain long-term profitability and value creation.
Key Performance Indicators
Key Insights
Revenue QQ2 2026: $1.43084B, up 9.11% YoY and 48.34% QoQ. Gross profit QQ2 2026: $803.822M, up 9.62% YoY and 49.44% QoQ. Operating income QQ2 2026: $326.521M, up 7.03% YoY and 97.55% QoQ. Net income QQ2 2026: $268.152M, up 10.66% YoY and 92.63% QoQ. EPS QQ2 2026: $1.82, up 14.47% YoY and 95.70% QoQ. Gross margin: 56.18% (YoY +30 bps). SG&A: $477.301M in the quarter (33.4% of revenue, up from 32.7% prior year). Cash and cash equivalents: $1.414B; Inventory: $835.595M; Total current assets: $2...
Financial Highlights
Revenue QQ2 2026: $1.43084B, up 9.11% YoY and 48.34% QoQ. Gross profit QQ2 2026: $803.822M, up 9.62% YoY and 49.44% QoQ. Operating income QQ2 2026: $326.521M, up 7.03% YoY and 97.55% QoQ. Net income QQ2 2026: $268.152M, up 10.66% YoY and 92.63% QoQ. EPS QQ2 2026: $1.82, up 14.47% YoY and 95.70% QoQ. Gross margin: 56.18% (YoY +30 bps). SG&A: $477.301M in the quarter (33.4% of revenue, up from 32.7% prior year). Cash and cash equivalents: $1.414B; Inventory: $835.595M; Total current assets: $2.971B; Total liabilities: $1.318B; Share repurchases: ~$282M in Q2 at $109.31/share; Total debt: $350.672M; Net debt: -$1.063807B. Forward-looking revenue guidance: ~$5.35B for FY2026; HOKA low-teens growth; UGG low-single to mid-single-digit growth. Gross margin target: ~56%; SG&A target: ~34.5% of revenue; Operating margin target: ~21.5%; Tax rate: ~23%; EPS target: $6.30–$6.39. Tariff impact (unmitigated): ~$150M; Mitigation: $75–$95M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.43B |
9.11% |
48.34% |
| Gross Profit |
803.82M |
9.62% |
49.44% |
| Operating Income |
326.52M |
7.03% |
97.55% |
| Net Income |
268.15M |
10.66% |
92.63% |
| EPS |
1.82 |
14.47% |
95.70% |
Management Commentary
Theme: Brand strategy and international expansion. Stefano reiterated that HOKA and UGG are two healthiest brands with a long run of growth and that the company aims for a 50/50 DTC/Wholesale mix. He highlighted the expansion of HOKA in international markets (EMEA and China) and the continued strength of UGG, particularly in wholesale channels as shipments were pulled forward ahead of a planned warehouse transition. He also emphasized product focus and the evolution of HOKA’s product families (Mafate X, Mafate 5, Mafate Speed 2) and the planned Clifton/Bondi cadence update to reduce overlap in fall 2026. Theme: Tariffs and margin management. Steve Fasching outlined that tariff headwinds are the primary driver of back-half margin pressure, but actions such as pricing, inventory positioning, and supplier cost sharing helped mitigate Q2 headwinds. He cautioned that tariff-related effects will persist into FY27 and that the company will continue to manage promotions and pricing to preserve premium positioning. Theme: Consumer environment and risk management. Both executives acknowledged a cautious U.S. consumer amid inflation and multi-brand shopping trends, while noting international markets remain supportive and are a major driver of growth for HOKA and UGG. Management emphasized long-term brand-building discipline and the importance of a balanced, omnichannel approach to capitalize on holidays and peak season demand.
We are anticipating a more cautious consumer as the full impact of tariffs and price increases will be felt here in the U.S.
— Stefano Caroti
Our HOKA back half still is a low-teens guide, and we are managing tariffs as we move through the year while maintaining long-term brand discipline.
— Steve Fasching
Forward Guidance
Deckers reinstated full-year guidance for FY2026, projecting total company revenue of ~ $5.35B with HOKA growing in the low-teens and UGG in the low-single to mid-single-digit percentage. Gross margin is expected around 56%, with tariff headwinds materializing in the back half of the year and partial mitigation offsets estimated at $75M–$95M. SG&A is planned at ~34.5% of revenue, yielding an operating margin near 21.5%. The company also projects a ~23% effective tax rate and EPS in a range of $6.30–$6.39. Management cautions that tariff dynamics and macroeconomic shifts could affect the cadence, but emphasizes international outpacing U.S. growth, ongoing DTC expansion, and a longer-term objective to achieve a balanced 50/50 revenue split between DTC and wholesale. Key factors for investors to monitor include: tariff developments and mitigation effectiveness, consumer demand in the U.S. vs international regions, DTC strength and loyalty program progression, wholesale channel mix, and inventory discipline as the company progresses through H2 FY2026 holiday season.