DECK · Q1 2027 Earnings

Cautious

Deckers Brands

Reported July 23, 2026

30-second summary

Q1 FY2027 revenue grew 5.7% to $1.02B (in line with the ~$1.04–1.06B implied trajectory at the low end) and GAAP EPS of $0.94 beat consensus of $0.87 by 8%, but HOKA decelerated hard to +7.7% from +19.8% a year ago — below the 10–12% low-double-digit framework bar the Q4 guide set. Management raised FY27 EPS by $0.05 to $7.35–$7.50, nudged gross and operating margin guides from "approximately" to "slightly better than" 56.5% and 21.5%, and reaffirmed the $5.86–5.91B revenue range along with SG&A (~35%) and effective tax rate (~23%). The company also repurchased $338M of stock in the quarter, leaving $4.7B on the authorization. Q1 is not the disaster the HOKA number could have made it, but the Q4 setup that codified a low-double-digit HOKA and 21.5% op margin framework now has a Q1 print sitting at the wrong end of both bars.

Headline numbers

EPS

Q1 FY2027

$0.94

+8.0% vs est.

Revenue

Q1 FY2027

$1.02B

+5.7% YoY

0.0% vs est.

Gross margin

Q1 FY2027

56.4%

Operating margin

Q1 FY2027

15.2%

Key financials

Q1 FY2027

Metric	Q1 FY2027	Q1 FY2026	YoY	Q4 FY2026	QoQ
Revenue	$1.02B	$0.96B	+5.8%	$1.12B	-8.8%
EPS	$0.94	$0.93	+1.1%	$0.96	-2.1%
Gross margin	56.4%	55.8%	+60bps	57.6%	-120bps
Operating margin	15.2%	17.1%	-190bps	14.0%	+120bps

Guidance

Company raised FY2027 EPS guidance by $0.05 across the range to $7.35–$7.50 (reflecting improved profitability), while reaffirming revenue and brand growth targets and modestly raising gross and operating margin guidance.

Guidance is issued for both next quarter and the full year. Both may appear below.

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Diluted EPS	FY 2027	$7.30–$7.45	$7.35–$7.50	+$0.05 (low end: $7.30→$7.35; high end: $7.45→$7.50)	Raised
Gross margin	FY 2027	approximately 56.5%	slightly better than 56.5%	+0–50 bps (implicit upward revision from 'approximately' 56.5% to 'slightly better')	Raised
Operating margin	FY 2027	approximately 21.5%	slightly better than 21.5%	+0–50 bps (implicit upward revision from 'approximately' 21.5% to 'slightly better')	Raised
SG&A expenses (% of sales)	FY 2027	approximately 35%	Withdrawn — no replacement	—	Withdrawn
Effective tax rate	FY 2027	approximately 23%	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Revenue ($5.86–$5.91B), HOKA growth (low-double-digit percentage versus last year), UGG growth (mid-single-digit percentage versus last year)

Segment performance

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
HOKA	$0.704B	$0.653B	+7.8%
UGG	$0.278B	$0.265B	+4.9%
Other brands	$0.038B	$0.046B	-17.9%
Wholesale	$0.667B	$0.652B	+2.2%
Direct-to-Consumer	$0.353B	—	+13.0%
HOKA brand growth guidance (FY2027)	low-double-digit percentage	—	—
UGG brand growth guidance (FY2027)	mid-single-digit percentage	—	—

Platform metrics

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
DTC comparable sales growth	6.8%	—	—
Constant currency net sales growth	4.8%	—	—

Other KPIs

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
Domestic	$0.517B	$0.501B	+3.1%
International	$0.502B	$0.463B	+8.4%

Management tone

No transcript was available for this quarter; tone analysis is limited to press-release language and disclosure choices.

The press-release disclosure framework is stable relative to Q4. Every FY27 line item Q4 codified — revenue, HOKA growth, UGG growth, gross margin, SG&A, operating margin, effective tax rate — is present again, with gross and operating margin firmed from "approximately" to "slightly better than" and the remainder reaffirmed verbatim. The EPS raise is framed narrowly ("reflecting an increase of five cents versus the prior outlook") with no attribution to segment mix, tariff mitigation, or buyback pace. Absent transcript color, a $0.05 raise on a $7.425 midpoint (~0.7%) with HOKA already tracking below the framework floor reads as a signal to expect FY27 will be "delivered" rather than "exceeded."

Answers to last quarter's watch list

Q1 FY2027 revenue tracking against the implied FY2027 trajectory. Q1 revenue of $1.02B landed below the $1.04–1.06B implied range that a low-double-digit trajectory would have needed against the $964.5M Q1 FY26 baseline. At +5.7% YoY the growth rate is below the 7.1–8.0% FY27 guide range, meaning the balance of FY27 has to average roughly 7.5–8.5% growth to hit the reaffirmed $5.86–5.91B — front-half backloaded, but not by a lot. Status: Continue monitoring

Q1 FY2027 gross margin tracking against the FY2027 ~56.5% guide. Q1 gross margin came in at 56.4%, essentially at the FY guide line and above the 55% bear threshold — the tariff-pressure quarter did not blow out the margin. The upward nudge to "slightly better than 56.5%" is consistent with the Q1 result, though the FY27 guide still implies ~130bps of compression versus FY26's 57.7%. Status: Resolved positively

Whether HOKA Q1 FY2027 growth comes in above 12%. No — HOKA grew +7.7%, below the 10–12% low-double-digit framework floor. The framework was nonetheless reaffirmed, which implies management expects H2 HOKA to accelerate above 12% (i.e. Q1 is the trough, not the run-rate). That's a testable proposition; the Q2 and Q3 prints will resolve whether the framework holds or gets cut. Status: Resolved negatively

DTC comparable net sales holding positive. DTC comparable +6.8% in Q1, sustaining the +8.2%/+7.3% Q4/Q3 pattern. Three consecutive quarters of positive mid-to-high single-digit DTC comps validates the HOKA membership program as a structural lever — the strongest positive data point in the print. Status: Resolved positively

Unmitigated tariff exposure update for FY2027. The company didn't disclose an updated unmitigated tariff figure in the press release. Absent transcript commentary, the FY27 gross margin guide moving from "approximately" to "slightly better than" 56.5% is the only signal — modestly constructive, but the underlying tariff math is not visible. Status: Not resolved

SG&A leverage relative to the ~35% FY2027 guide. The FY27 SG&A guide was reaffirmed at approximately 35%. Q1 SG&A of $419.9M on $1.02B in sales works out to ~41.2%, but Q1 is seasonally the lowest-revenue quarter — the FY ratio is back-half-weighted. Nothing in Q1 invalidates the ~35% FY framework. Status: Continue monitoring

Pace of repurchases against the $5B authorization and ~80% of FCF assumption. The company repurchased approximately 3.3 million shares for $338.2 million in Q1 at a weighted-average price of $103.79, leaving approximately $4.7 billion on the authorization. The EPS guide continues to assume repurchases equal to ~80% of projected FY27 FCF. Status: Resolved (active pace)

What to watch into next quarter

Whether HOKA Q2 growth accelerates to the low-teens. With Q1 at +7.7% and the FY framework reaffirmed at 10–12%, HOKA needs to average roughly 11–13% across Q2–Q4 to make the math work. A Q2 print at or below 10% would force either a same-year framework cut or an implausibly loaded H2.

Whether gross and operating margin firm further or slip back to "approximately". Moving from "approximately" to "slightly better than" is a one-notch improvement. A further step to a point estimate above 56.5%/21.5% in Q2 would signal genuine operational upside; a retreat to "approximately" would signal Q1's read-through was overstated.

Q2 FY2027 revenue against the Q2 FY26 baseline of $1.43B. No explicit Q2 guide was issued; the FY math implies Q2–Q4 average growth of roughly 7.5–8.5%, which would put Q2 at roughly $1.54B. A Q2 print materially below $1.53B would force a mid-year cut to the reaffirmed $5.86–5.91B FY guide.

DTC comparable holding above +5%. Three quarters of positive mid-to-high single-digit comps validate the membership program. A deceleration below +5% in Q2 would signal the structural lever is losing torque; sustained positive comps would move DTC from "recovery" to "durable driver."

Explicit FY27 unmitigated tariff figure. The Q3 FY26 disclosure was ~$110M for FY26; the FY27 gross margin guide of 56.5% implies renewed pressure. An updated FY27 unmitigated number in the Q2 release or transcript would be the single cleanest read on whether the margin guide is conservative or optimistic.

Wholesale re-acceleration. Q1 wholesale grew only +2.2% versus DTC +13.0%. If wholesale stays sub-5% while HOKA is guided to low-double-digit for the year, the channel arithmetic breaks — DTC would have to sustain low-double-digit growth to compensate, and that hasn't been the pattern.

Sources

Deckers Brands Q1 FY2027 press release, filed with SEC, July 23, 2026: https://www.sec.gov/Archives/edgar/data/910521/000091052126000015/deckex991pressrelease-6302.htm

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