Deckers Brands will report its fiscal Q1 2026 results, with a focus on the ability to maintain last year's record margins and sales volume in a historically slower period. Analysts project a year-over-year EPS decline of approximately 10%, while full-year revenue is expected to rise over 8%. Key areas of interest include HOKA's sales growth, UGG's performance post-winter, gross margin trends, the strategic importance of DTC sales, and inventory management. Deckers ended the last quarter with lower year-over-year inventory, demonstrating operational discipline.
HOKA continues to be the company's top growth engine, growing 34% year-over-year to over $500 million in sales. Updates on international expansion and innovation will be significant.
UGG delivered $282 million in Q4, up 15% year-over-year, signaling strong resilience post-winter. Investors should watch for early indicators of fall/winter demand.
Deckers posted a gross margin of 56.1% last quarter, its highest ever, supported by lower freight costs and disciplined discounting, raising questions about sustainability this quarter.
Management emphasizes the strategic importance of direct-to-consumer (DTC) sales during the earnings call, with close attention on the channel mix and wholesale partner inventory levels.
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