US' Deckers posts 16.9% Q1 FY26 sales growth as Hoka & Ugg shine

Meanwhile, the company reported a strong financial result for the first quarter (Q1) for FY26 ended June 30, 2025, with net sales increasing 16.9 per cent year-over-year (YoY) to $964.5 million, up from $825.3 million in Q1 FY25.

The Hoka and UGG brands led this growth, posting sales of $653.1 million and $265.1 million respectively, while sales from other brands declined 19 per cent to $46.3 million.

Channel-wise, wholesale net sales rose 26.7 per cent to $652.4 million, while direct-to-consumer (DTC) sales edged up 0.5 per cent to $312.2 million, despite a 2.2 per cent drop in comparable DTC sales.

The gross profit of the company reached $537.9 million with a margin of 55.8 per cent, down slightly from 56.9 per cent in the previous year. SG&A expenses rose to $372.6 million from $337.2 million, leading to operating income of $165.3 million, up from $132.8 million. Total other income stood at $17.8 million, pushing pre-tax income to $183.1 million, with net income rising 20.4 per cent to $139.2 million.

International net sales surged 49.7 per cent to $463.3 million, helping offset a 2.8 per cent decline in domestic sales to $501.3 million.

Basic and diluted earnings per share were $0.93, adjusted for a six-for-one forward stock split effected in Q2 FY2025. The company reported comprehensive income of $130.8 million, despite a $8.4 million loss from other comprehensive items.

Deckers held $1.72 billion in cash and cash equivalents, inventories of $849.4 million, and no outstanding borrowings as of June 30, 2025. During the quarter, the company repurchased approximately 1.7 million shares for $183 million at an average price of $109.84, with $2.4 billion remaining under its share repurchase authorisation.

“Hoka and UGG outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026,” said Stefano Caroti, president and chief executive officer (CEO) at Deckers. “Though uncertainty remains elevated in the global trade environment, our confidence in our brands has not changed, and the long-term opportunities ahead are significant. We will lean on the fundamental strengths of our powerful operating model as we continue executing our strategy.”

ALCHEMPro News Desk (SG)