Key Highlights
- The company delivered first-quarter fiscal 2027 revenue of $1.02 billion, marking a 5.7% increase from the prior year, while earnings per share of $0.94 surpassed forecasts by $0.06.
- HOKA brand revenue climbed 8% to reach $704 million, fueled by strong direct-to-consumer sales and successful product launches including the Clifton Pro.
- UGG brand sales increased 5% to $278 million, benefiting from expanded men’s offerings and year-round product diversification.
- The company’s gross margin expanded to 56.4%, even as tariff headwinds pressured margins by roughly 150 basis points.
- Annual EPS guidance of $7.35ā$7.50 fell marginally below the Street’s $7.49 estimate, triggering a selloff in extended trading.
Deckers Outdoor achieved a milestone with its first quarterly revenue exceeding $1 billion, yet shares retreated in after-hours activity following annual earnings guidance that narrowly trailed Wall Street forecasts.
The stock decline followed the company’s projection of full-year diluted earnings per share between $7.35 and $7.50, falling just short of the analyst consensus target of $7.49. Despite the strong quarterly performance, this small shortfall was sufficient to trigger investor concern.
First-quarter results for fiscal 2027 showed total revenue reaching $1.02 billion, representing a 5.7% year-over-year gain. Earnings per share of $0.94 exceeded expectations by $0.06. The direct-to-consumer channel surged 13%, with HOKA’s DTC segment advancing 17% and UGG’s DTC channel growing 6%.
Deckers Outdoor Corporation, DECK
The HOKA brand posted $704 million in quarterly revenue, an 8% increase. Performance was balanced across the portfolio, encompassing legacy favorites like Clifton and Bondi alongside recent introductions such as Speedgoat 7, Mach 7, and Mafate Speed 2.
The newly introduced Clifton Pro, released just two weeks prior to the earnings announcement, had already generated wholesale reorders. Leadership highlighted this as part of a strategic initiative to establish clearer product segmentation within HOKA, distinguishing between “Glide” cushioning technology and “Fly” performance-oriented collections.
HOKA’s wholesale channel delivered 3% revenue growth globally. Management clarified that the moderate wholesale increase reflected timing variations in international shipments compared to unusually early deliveries in the comparable period, rather than any underlying demand weakness.
UGG Expands Beyond Seasonal Boundaries
UGG delivered $278 million in revenue, a 5% gain, with balanced growth across both direct-to-consumer and wholesale channels. International markets, particularly Asia, led the expansion.
Men’s products represented the largest source of incremental UGG revenue during the quarter. Caroti indicated that men’s currently accounts for approximately 15% of UGG revenue, with ambitions to reach 20% or higher. Items like the Ottosee clog and gender-neutral styles including Tasman and Lowmel powered this segment’s momentum.
The brand’s evolution toward year-round relevance continued, with sandals, sneakers, and mules gaining prominence alongside traditional cold-weather offerings.
Profitability Remains Strong Despite Tariff Pressure
Gross margin expanded to 56.4%, rising 60 basis points from 55.8% in the year-ago period. The improvement stemmed from advantageous channel and product mix along with robust full-price selling. Tariff impacts reduced gross margin by approximately 150 basis points during the quarter.
Operating expenses increased 13% to $420 million, driven by workforce investments, marketing expenditures, and HOKA retail expansion initiatives. Deckers closed the quarter holding $1.6 billion in cash, inventory declined 5% to $808 million, and the company maintained a debt-free balance sheet.
Share repurchases totaled approximately $338 million during the quarter at an average cost of $103.79 per share. Roughly $4.7 billion remains available under the current buyback authorization.
The company elevated its full-year gross margin forecast to slightly above 56.5% and increased operating margin guidance to slightly above 21.5%. Revenue projections remained unchanged at $5.86 billion to $5.91 billion.
For the second quarter, management anticipates revenue growth of approximately 5%, with HOKA expected in the high-single-digit range and UGG in the mid-single-digit range. Second-quarter earnings per share guidance stands at $1.73ā$1.78.
Leadership indicated that accelerated growth is anticipated in the latter half of the fiscal year, primarily driven by HOKA’s international wholesale operations and distributor network expansion.
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