Deckers Brands reported Q1 FY27 revenue of $1.02 billion, up 5.7 per cent, driven by HOKA and UGG brand growth.
HOKA sales rose 7.7 per cent to $703.5 million, while UGG increased 4.9 per cent to $278 million.
DTC sales grew 13 per cent, and the company raised FY27 EPS guidance to $7.35-$7.50 while maintaining revenue outlook of $5.86-5.91 billion.
Diluted EPS increased to $0.94 from $0.93, while operating income declined to $155.3 million from $165.3 million due to higher selling, general and administrative expenses. Gross margin improved to 56.4 per cent from 55.8 per cent, Deckers Brands said in a press release.
HOKA and UGG drive brand growth
HOKA brand sales increased 7.7 per cent to $703.5 million, supported by strong global demand and product innovation. UGG revenue rose 4.9 per cent to $278 million, while sales from other brands declined 18.1 per cent to $37.9 million, partly due to the phase-out of Koolaburra standalone operations.
“As we build deeper connections with consumers across geographies and channels, we remain focused on advancing our premium brands and executing with discipline against our long-term strategies,” added Caroti.
The direct-to-consumer (DTC) channel remained a key growth driver, with sales increasing 13 per cent to $352.8 million and comparable DTC sales rising 6.8 per cent. Wholesale revenue grew 2.2 per cent to $666.7 million.
International sales increased 8.4 per cent to $502.1 million, while domestic sales rose 3.2 per cent to $517.4 million. Deckers ended the quarter with cash and cash equivalents of $1.60 billion, inventory of $807.6 million and no outstanding borrowings.
Deckers raises FY27 EPS outlook
During Q1 FY27, Deckers repurchased around 3.3 million shares worth $338.2 million at an average price of $103.79 per share. The company had approximately $4.7 billion remaining under its share repurchase authorisation as of June 30, 2026.
For FY27, Deckers maintained its revenue outlook at $5.86-5.91 billion. HOKA sales are expected to grow at a low double-digit rate, while UGG revenue is projected to increase at a mid-single-digit rate. Gross margin is expected to be slightly above 56.5 per cent, with operating margin projected above 21.5 per cent.
Fibre2Fashion News Desk (SG)
