Deckers Outdoor Corp (NYSE:DECK) Reports Strong Q1 2026 Earnings with Revenue and EPS Surpassing Estimates

Deckers Outdoor Corp (NYSE:DECK) reported stronger-than-expected financial results for the first quarter of fiscal year 2026, with both revenue and earnings per share (EPS) surpassing analyst estimates. The footwear and apparel company posted net sales of $964.5 million, a 16.9% year-over-year increase, beating the consensus estimate of $918.9 million. Diluted EPS came in at $0.93, significantly higher than the $0.70 analysts had projected.

The market reacted positively to the earnings beat, with shares rising sharply in after-hours trading. The stock’s 18.2% surge reflects investor confidence in the company’s performance, particularly the strength of its HOKA and UGG brands, which drove much of the revenue growth.

Key Financial Highlights

• Revenue Growth: Net sales climbed to $964.5 million, up from $825.3 million in the prior-year quarter, with HOKA (+19.8%) and UGG (+18.9%) leading the expansion.
• Profitability: Gross margin dipped slightly to 55.8% from 56.9%, but operating income rose to $165.3 million from $132.8 million.
• EPS Strength: The $0.93 EPS figure was well above the $0.70 estimate, aided by share repurchases and strong sales performance.
• Balance Sheet: Cash and equivalents stood at $1.72 billion, up from $1.44 billion a year ago, while inventories increased to $849.4 million from $753.3 million.

Market Reaction and Outlook

The company’s guidance for the second quarter aligns closely with analyst expectations. Deckers anticipates Q2 net sales between $1.38 billion and $1.42 billion, bracketing the consensus estimate of $1.431 billion. EPS is projected in the range of $1.50 to $1.55, compared to the $1.54 analyst forecast.

While macroeconomic uncertainties—including global trade pressures and currency fluctuations—remain a concern, management expressed confidence in the resilience of its brands. The strong after-hours rally suggests investors are optimistic about Deckers’ ability to sustain growth despite broader market challenges.

Capital Allocation and Shareholder Returns

Deckers repurchased 1.7 million shares for $183 million during the quarter, with $2.4 billion still available under its buyback authorization. This aggressive capital return strategy likely contributed to the EPS beat and signals confidence in future cash flows.

For a deeper dive into Deckers’ earnings estimates and historical performance, visit the earnings estimates page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.