Deckers Crosses $1 Billion Quarterly Revenue as HOKA and UGG DTC Drive Margin Gains

Transcript intelligence

What changed

From Q4 FY26 to Q1 FY27: Revenue crossed $1B for the first time, up 5.7% YoY. EPS of $0.94 beat estimates by 6.8%. DTC growth decelerated from 18% to 13%. Gross margin expanded 60 bps to 56.4%. FY27 EPS guidance was raised from $7.30-$7.45 to $7.35-$7.50 while revenue guidance was reaffirmed at $5.86-$5.91B. The tariff-rate assumption increased from 10% to 12.5%, with the company now pursuing IEEPA-related tariff refunds. Share repurchases totaled $338M in the quarter. The bullish score declined from 85 to 78.

Guidance delta

FY27 revenue guidance reaffirmed at $5.86-$5.91B. EPS guidance raised from $7.30-$7.45 to $7.35-$7.50, reflecting higher gross-margin assumptions. Tariff-rate assumption increased from 10% to 12.5%. The company is pursuing IEEPA-related tariff refunds, which could provide a future tailwind if recovered. Capex guidance was not addressed this quarter; the prior outlook was $145-$155M.

Key takeaways

• First-ever quarterly revenue above $1B, up 5.7% YoY, with EPS of $0.94 beating estimates by 6.8%.
• DTC sales grew 13% YoY, the primary growth driver, supported by full-price sell-through discipline.
• Gross margin expanded 60 bps to 56.4% on better close-out management and inventory control.
• Share repurchases totaled $338M, continuing capital return alongside the prior $1.1B authorization.
• FY27 EPS guidance raised to $7.35-$7.50 despite a higher 12.5% tariff-rate assumption.

Management priorities

• Roll out HOKA Clifton Pro and upcoming Mach Pro across performance running channels.
• Launch new UGG collections including Dusty Orchid, mule, and hidden-wedge silhouettes.
• Expand HOKA distribution in sporting-goods and specialty retail channels.
• Sustain full-price sell-through and DTC momentum as primary growth levers.
• Continue investing in lifestyle and performance product pipelines across both flagship brands.