DECK — Deckers Outdoor Corporation

Deckers Brands Q4 Fiscal 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 Revenue: $1.12 billion, up 10% year-over-year.
• Full Fiscal Year Revenue: $5.47 billion, a 10% increase from the previous year.
• HOKA Revenue: $671 million in Q4, marking the brand's largest quarter ever; total annual revenue of $2.59 billion (up 16%).
• UGG Revenue: $409 million in Q4, with total annual revenue of $2.74 billion (up 8%).
• Gross Margin: 57.6% in Q4, up 90 basis points; full year gross margin at 57.7%, down 20 basis points due to tariffs.
• Operating Margin: 23.1% for the full year.
• Earnings Per Share: $7.02, an 11% increase year-over-year.
• Share Repurchases: $1.075 billion in FY26, with a new authorization for additional repurchases.

2. Strategic Updates and Business Highlights

• HOKA: Continued strong growth driven by innovative products and increased consumer adoption. The brand is expanding its global presence and enhancing DTC capabilities.
• UGG: Achieved growth through a diversified product mix and increased engagement across demographics, particularly among male consumers.
• Product Innovation: Both brands are focusing on product families to enhance consumer engagement and market share.
• Marketing Investments: Increased spending on marketing to build brand awareness and support growth initiatives.

3. Forward Guidance and Outlook

• FY27 Revenue Guidance: Expected between $5.86 billion and $5.91 billion, indicating high single-digit growth.
• HOKA Growth: Anticipated low double-digit growth; UGG expected to grow mid-single digits.
• Gross Margin Outlook: Projected at approximately 56.5%, primarily due to higher freight costs and inflation.
• Operating Margin: Expected to be around 21.5% for FY27.
• Earnings Per Share: Forecasted between $7.30 and $7.45, with continued share repurchase plans.

4. Bad News, Challenges, or Points of Concern

• Tariff Impact: Ongoing tariffs are expected to pressure gross margins, with a net headwind of approximately 80 basis points for FY26.
• Inflationary Pressures: Rising input costs and freight expenses are anticipated to affect profitability moving forward.
• Domestic Market Performance: U.S. revenue growth was flat, impacted by discontinued brands, though both HOKA and UGG showed positive trends.
• Consumer Behavior: Shift towards event-driven purchasing may create volatility in sales patterns.

5. Notable Q&A Insights

• HOKA Order Book: Strong visibility for growth in wholesale, with confidence in low double-digit growth driven by new product launches and strong sell-through rates.
• International Strategy: HOKA is focusing on expanding its presence in under-penetrated markets, particularly in sporting goods and athletic specialty retailers.
• UGG's Seasonal Performance: The brand is evolving to become a year-round lifestyle option, with expectations for growth in spring/summer categories outpacing fall/winter.
• Inventory Management: Lower inventory levels are expected to drive full-price selling, with a focus on maintaining healthy stock levels to support future growth.

This summary encapsulates the key points discussed during the earnings call, highlighting Deckers Brands' strong performance, strategic initiatives, and outlook while addressing potential challenges and market dynamics.