Executive Summary

Q2 FY26 delivered solid growth and beats: revenue rose 9.1% to $1.43B and diluted EPS increased 14% to $1.82, both above S&P Global consensus; EBITDA also exceeded estimates, with gross margin up 30 bps YoY to 56.2% . Actual vs S&P Global consensus: Revenue $1.4308B vs $1.4183B*, EPS $1.82 vs $1.584*; EBITDA $346.3M vs $309.4M* (beats) (values from S&P Global)*.
Mix and geography: Wholesale +13.4% to $1.036B, DTC -0.8% to $394.6M (DTC comps -2.9%); International +29.3% to $591.3M vs Domestic -1.7% to $839.5M, reflecting earlier shipments and stronger ex-U.S. demand .
FY26 guidance reinstated: Net sales ~$5.35B; GM ~56%; SG&A ~34.5% of sales; Op margin ~21.5%; tax ~23%; EPS $6.30–$6.39. HOKA +low-teens; UGG +low-to-mid-single-digits .
Tariff headwinds: unmitigated FY26 impact now ~+$150M; mitigation expected at ~$75–$95M via strategic pricing and factory cost sharing. Q2 gross margin benefited from timing (price increases ahead of full tariff burden); back-half margins expected to face the tariff headwind .
Capital returns remain robust: 2.6M shares repurchased in Q2 for $282M at $109.31 avg; $2.2B remains under authorization .

What Went Well and What Went Wrong

What Went Well
- Strong brand performance: HOKA +11.1% to $634.1M; UGG +10.1% to $759.6M; gross margin expanded 30 bps to 56.2% YoY . CEO: “HOKA and UGG again delivered double-digit growth…international momentum” .
- International strength and wholesale execution: International +29.3% YoY; wholesale +13.4% with earlier shipments and EMEA warehousing transition benefits .
- Pricing power holding: selective price increases effective July 1 with “no issues” in sell-through on key styles; DTC comps modestly down but improving sequentially; HOKA order book healthy .
What Went Wrong
- U.S. macro/tariff pressure and channel mix: Domestic sales -1.7%; DTC -0.8% with DTC comps -2.9% as consumers favored multi-brand in-store shopping; back-half margin guided lower due to tariffs .
- UGG DTC softness: UGG DTC -10% as wholesale in-stocks and earlier allocations pressured direct sales near-term .
- Other brands decline: Other brands net sales -26.5% to $37.2M on Koolaburra phase-out, limiting portfolio contribution .

Financial Results

Headline metrics and trends

Metric	Q2 2025	Q1 2026	Q2 2026
Revenue ($USD Billions)	$1.311	$0.9645	$1.4308
Gross Margin (%)	55.9%	55.8%	56.2%
Operating Income ($USD Millions)	$305.1	$165.3	$326.5
Diluted EPS ($)	$1.59	$0.93	$1.82

Actual vs S&P Global consensus (Q2 2026)

Metric	Actual	S&P Global Consensus	Surprise
Revenue ($USD Billions)	$1.4308	$1.41834*	+$0.01246B (Beat)*
Diluted EPS ($)	$1.82	$1.58413*	+$0.236 (Beat)*
EBITDA ($USD Millions)	$346.27 [functions.GetEstimates]	$309.37*	+$36.9M (Beat)*

Note: Asterisked consensus values from S&P Global.

Segment, channel, and geography (Q2 YoY)

Category	Q2 2025	Q2 2026
HOKA Net Sales ($M)	$570.9	$634.1
UGG Net Sales ($M)	$689.9	$759.6
Other Brands Net Sales ($M)	$50.6	$37.2
Wholesale Net Sales ($M)	$913.7	$1,036.0
DTC Net Sales ($M)	$397.7	$394.6
DTC Comparable Sales (%)	—	-2.9%
Domestic Net Sales ($M)	$853.9	$839.5
International Net Sales ($M)	$457.4	$591.3

Select KPIs

KPI	Q2 2025	Q2 2026
Cash & Equivalents ($B)	$1.226	$1.414
Inventories ($B)	$0.778	$0.836
Share Repurchases (Qtr)	—	$282.0M; 2.6M shares; $109.31 avg price

Cross-checks: Q1 FY26 (for trend)

Metric	Q1 2025	Q1 2026
Revenue ($M)	$825.3	$964.5
Gross Margin (%)	56.9%	55.8%
HOKA Net Sales ($M)	$545.2	$653.1
UGG Net Sales ($M)	$223.0	$265.1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2026	Not provided (Q1)	~$5.35B	New
HOKA Growth	FY 2026	Mid-teens framework pre-tariff (context)	Low-teens %	Lower vs framework
UGG Growth	FY 2026	Mid-single-digits framework	Low-to-mid-single-digits %	In-line/slightly lower
Gross Margin	FY 2026	Decline vs FY25 (qualitative)	~56%	Quantified
SG&A (% Sales)	FY 2026	Short-term ratio could rise	~34.5%	Quantified
Operating Margin	FY 2026	Below FY25 (qualitative)	~21.5%	Quantified
Tax Rate	FY 2026	—	~23%	New
Diluted EPS	FY 2026	—	$6.30–$6.39	New
Tariff Impact (gross)	FY 2026	Up to ~$150M–$185M (evolving)	~$150M (unmitigated); mitigation ~$75–$95M	Updated quantified

Earnings Call Themes & Trends

Topic	Q4 FY25 (Q-2)	Q1 FY26 (Q-1)	Q2 FY26 (Current)	Trend
Tariffs & mitigation	Flagged up to ~$150M gross impact; exploring pricing and factory cost sharing	Estimated up to $185M gross if VN 20%; planned ~$75M mitigation; price hikes from July	Unmitigated ~$150M; mitigation ~$75–$95M; Q2 margin helped by timing; back-half pressured	Headwind persistent; mitigation refined
Channel mix	Strategy to expand wholesale while building DTC; aim 50/50 long term	Wholesale expansion to meet in-store try-on; DTC pressured near term	Wholesale strength; DTC -10% at UGG; sequential DTC improvement; expect more DTC in Q3/Q4	Wholesale-led now; DTC recovery later
International vs U.S.	Intl outpacing U.S. growth	Intl up 50% in Q1; U.S. softer	Intl +29.3% in Q2; U.S. cautious consumer	Intl momentum intact
Pricing power	Premium positioning supports price; selective hikes planned	July 1 price increases; no order book impact	“No issues” post-price hikes; sell-through strong	Resilient
Product roadmap	Bondi 9/Clifton 10 transitions; broader innovation	Arahi 8, Mafate 5, Rocket X3 pipeline; healthy bookings	More lower-profile options; Mach 7, Gaviota, Speedgoat updates; 2026 cadence improvements	Continued innovation
Supply chain & logistics	Lean inventory; manage scarcity	EMEA 3PL transition drove earlier shipments	EMEA warehouse transition led to pulled-forward UGG shipments	Transition effects abating

Management Commentary

“Deckers delivered outstanding second quarter results ahead of our expectations on both the top and the bottom line... revenue growth of 9% and a 14% increase in diluted earnings per share” .
“Gross margin for the second quarter was 56.2%, up 30 basis points... better-than-expected gross margin... driven by favorable timing of tariff-related variables unique to the second quarter” .
“We now expect the unmitigated tariff impact on fiscal year 2026 to be approximately $150 million... mitigation efforts... offset approximately $75 to $95 million” .
“Wholesale strength was driven by strong demand... earlier demand as well as European shipments that were pulled forward related to our upcoming third-party warehouse transition” .
“Premium brands... we have not seen any issues [with] price increases... sell-throughs on key styles continue to be strong for both UGG and HOKA” .

Q&A Highlights

Guidance construction and cadence: Back half weighted with more pressure in Q3, stronger growth in Q4; cautious on U.S. consumer during holidays, but well-positioned if demand shows up .
DTC vs wholesale: Expect DTC improvement in Q3 and further in Q4; wholesale growth to slow over time as mix balances toward 50/50; near-term DTC pressured by broader wholesale availability and in-store try-on behavior .
Tariffs and margins: Tariff headwinds to drive back-half gross margin pressure and continue into FY27 if unchanged; Q2 margin benefited from timing (inventory and price actions) unlikely to repeat .
Pricing elasticity: Selective increases faced “no material decline in performance”; supports mitigation strategy .
HOKA product and order book: Healthy spring/summer 2026 order book; strong franchise updates (Clifton, Bondi, Arahi) and expansion into lower-profile offerings .

Estimates Context

Q2 FY26 vs S&P Global: Revenue $1.4308B vs $1.4183B*; EPS $1.82 vs $1.584*; EBITDA $346.3M vs $309.4M* — broad-based beats. Management’s FY26 EPS guide of $6.30–$6.39 implies sustained profitability despite tariff headwinds . Values with asterisk are from S&P Global.
Potential estimate revisions: Consensus likely moves up modestly on Q2 beats, but back-half margin headwinds and cautious U.S. consumer tone may cap FY26 EPS upward revisions; revenue guide ($5.35B) sets a new anchor for top line .

Key Takeaways for Investors

Quality beat with prudent FY26 guide: Q2 revenue/EPS/EBITDA beats alongside conservative back-half margin posture suggest durable demand with disciplined execution .
International and wholesale are carrying growth; DTC comp headwinds should abate into Q3/Q4; watch for sequential improvement .
Tariff risk quantified and partially mitigated; price power intact and factory cost sharing helps, but gross margin will be pressured in 2H and likely into early FY27 if tariffs persist .
HOKA/UGG engines remain healthy: double-digit brand growth, robust global order books, and a strong innovation pipeline (e.g., Mach, Gaviota, Speedgoat updates) support medium-term share gains .
Capital allocation supportive: substantial buyback authorization remaining ($2.2B) with ongoing repurchases provides downside support and EPS accretion .
Trading implications: Near term, guidance reinstatement and execution vs tariff headwinds are the catalysts; monitor holiday demand elasticity and DTC recovery cadence. Medium term, sustained international growth and product cycles remain the thesis drivers .

Appendices

Prior two quarters (context)

Metric	Q4 2025	Q1 2026
Revenue ($B)	$1.022	$0.9645
Gross Margin (%)	56.7%	55.8%
UGG Net Sales ($M)	$374.3	$265.1
HOKA Net Sales ($M)	$586.1	$653.1
Diluted EPS ($)	$1.00	$0.93

Additional Q2 details and balance sheet

Cash/equivalents $1.414B; Inventories $835.6M; no debt .
Operating income $326.5M; “Total other income, net” ($15.8)M (income), tax expense $74.2M; net income $268.2M .

Footnote: Asterisked consensus values are from S&P Global.

DECKERS OUTDOOR CORP (DECK)·Q2 2026 Earnings Summary