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UNITED STATES
SECURITIES AND EXCHANGE COM MISSION
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
OR

☐

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 CORP ORATION
(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 Sectio n 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 t his 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 ( DC s), wholesale partners, global
third-party logistics providers ( 3PL s), 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

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

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 ). T he 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 ( ASU s) 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.
A ssets 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 , t he 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 C ompany’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, i nformation
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% t o $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
p otential refunds of IEEPA tariffs.
W e previously paid an aggregate gross amount of approximately $120,000 in IEEPA tariffs, for which we hav e
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. O ur business and industry are subject to several additional important tr ends and uncertainties,
w hich have not materially changed f rom 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
presenc e ; 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:
• N et sales of the HOKA brand increased primarily due to higher global net sales across both
channels, with diverse product adoption in the DTC channe l, 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 marke t , partially o ffset by lower wholesale channel international net sales due to
p lanned shipment timing differences primarily from the transition of our European 3PL in the prior
period .
• N et 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, com pared 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 expense s .
• 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
marketin g.
• 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 margin s 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 margin s 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 f rom 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 t hat 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 facilit y 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 cre dit facility in China d isclosed 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 n o 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.

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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 i n 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 no t 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

O ur 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.
D uring 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