Financial Data and Key Metrics Changes - The company reported a revenue increase of 9% in the second quarter, reaching $1.43 billion, and a 14% increase in diluted earnings per share (EPS) to $1.82 [7][25][29] - For the first half of fiscal year 2026, total company revenue grew by 12%, with HOKA revenue increasing by 15% and UGG revenue rising by 12% [7][18] - Gross margin for the second quarter was 56.2%, up 30 basis points from 55.9% in the previous year, benefiting from price increases and favorable product mix [27][28] Business Line Data and Key Metrics Changes - HOKA's wholesale revenue increased by 13% in the second quarter, while DTC (Direct-to-Consumer) grew by 8% [25][27] - UGG's wholesale revenue rose by 17%, but DTC experienced a 10% decline due to pressures from better in-stock positions with wholesale partners [26][27] - HOKA gained two points of market share in the U.S. road-running category over the past year, while UGG's men's footwear grew at twice the rate of the overall brand [11][19] Market Data and Key Metrics Changes - International regions drove significant growth for both HOKA and UGG, with UGG and HOKA revenue increasing by 38% in international markets [7][18] - HOKA saw strong performance in EMEA and China, with notable growth in loyalty membership and significant gains among younger consumers [16][17] Company Strategy and Development Direction - The company aims for continued international expansion and a balanced business model between DTC and wholesale channels, targeting a 50/50 split [9][24] - HOKA is focusing on performance categories such as trail running, hiking, fitness, and lifestyle, with plans to introduce more lower-profile products [10][85] - UGG is enhancing its brand presence through marketing campaigns and collaborations to maintain cultural relevance and consumer engagement [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the U.S. consumer environment, anticipating a more cautious consumer behavior due to inflation and price increases [39][84] - The company remains confident in its brands' positioning and long-term growth potential, despite short-term challenges [35][42] Other Important Information - The company repurchased approximately $282 million worth of shares during the second quarter, with $2.2 billion remaining authorized for share repurchases [30] - The guidance for fiscal year 2026 includes total revenue expectations of approximately $5.35 billion, with HOKA projected to grow in the low teens and UGG in the low to mid-single digits [31][32] Q&A Session Summary Question: Can you unpack the guidance for HOKA and UGG growth expectations? - Management indicated that the guidance reflects a cautious outlook due to anticipated consumer behavior changes and tariff impacts, but remains confident in brand strength [39][42] Question: What is the split between DTC and wholesale for Q3 and Q4? - The company expects improvements in DTC sales in the back half of the year, with a more significant growth in Q4 compared to Q3 [55] Question: How are price actions affecting demand? - Management noted that premium brands have more elasticity, and they have not seen issues with sell-throughs despite price increases [68] Question: What are the growth opportunities for HOKA? - HOKA is focusing on performance, trail, fitness, lifestyle, and potential apparel categories, with significant upside in both U.S. and international markets [90]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 9% in the second quarter, with total revenue for the first half growing by 12% [7][26] - Diluted earnings per share (EPS) increased by 14% in the second quarter and by 17% in the first half [7][30] - Gross margin for the second quarter was 56.2%, up 30 basis points from 55.9% in the previous year [28][29] Business Line Data and Key Metrics Changes - HOKA revenue increased by 15% in the first half, driven by updates to major road-running franchises and strong international performance [10][20] - UGG revenue rose by 12% in the first half, with men's footwear growing at twice the rate of the overall brand [20][21] - HOKA's wholesale channel grew by 13% in the second quarter, while DTC (Direct-to-Consumer) grew by 8% [26][27] Market Data and Key Metrics Changes - International regions were the primary growth drivers for both HOKA and UGG, with UGG and HOKA revenue in international markets increasing by 38% year-over-year [7][20] - HOKA gained two points of market share in the U.S. road-running category and outpaced competition in Europe [11][15] Company Strategy and Development Direction - The company aims for continued international expansion and a balanced approach between DTC and wholesale channels, targeting a 50/50 split [9][18] - The focus remains on building brand awareness and consumer engagement through strategic marketing initiatives [8][19] - The company is committed to sustainable growth and long-term value creation for both HOKA and UGG brands [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer sentiment in the U.S. due to macroeconomic pressures, but remains optimistic about brand positioning for the holiday season [40][43] - The company anticipates a more challenging environment in the second half due to tariff impacts and shifts in consumer preferences [34][35] Other Important Information - The company repurchased approximately $282 million worth of shares during the second quarter, with $2.2 billion remaining authorized for share repurchases [31] - The guidance for fiscal year 2026 includes total revenue expectations of approximately $5.35 billion, with HOKA projected to grow in the low teens and UGG in the low to mid-single digits [32][33] Q&A Session Summary Question: Guidance reinstatement and growth expectations for HOKA and UGG - Management indicated that the guidance reflects a cautious outlook due to anticipated consumer behavior changes and tariff impacts, but remains confident in brand strength [40][42][43] Question: DTC and wholesale channel dynamics - Management explained that while wholesale growth has been strong, DTC is expected to improve in the back half of the year as inventory dynamics normalize [56][57] Question: Long-term margin structure and tariff impacts - Management acknowledged that while tariff pressures will continue, they are committed to maintaining strong operating margins above 20% in the long term [58][60] Question: Price actions and consumer demand - Management noted that price increases have not negatively impacted demand, with strong sell-throughs for key styles [68][70] Question: Order book health and consumer behavior - Management expressed satisfaction with the order book for spring/summer 2026 and noted that consumer behavior has shown deeper valleys and higher peaks due to uncertainty [80][84]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 9% for Q2 2026 compared to the previous year, with diluted earnings per share growing by 14% [7][29] - Total company revenue for the first half of fiscal 2026 grew by 12%, with HOKA revenue increasing by 15% and UGG revenue rising by 12% [7][21] - Gross margin for Q2 was 56.2%, up 30 basis points from 55.9% in the previous year, benefiting from price increases and favorable product mix [32][34] Business Line Data and Key Metrics Changes - HOKA's revenue in the first half increased by 15%, driven by updates to major road running franchises and strong sell-through rates [11][12] - UGG's global revenue in the first half increased by 12%, with men's footwear growing at twice the rate of the overall brand [21][22] - HOKA's wholesale revenue grew by 13% in Q2, while UGG's wholesale increased by 17%, partially offset by a 10% decline in UGG's DTC [30] Market Data and Key Metrics Changes - International regions drove UGG and HOKA revenue growth, with international sales increasing by 38% year-over-year [8] - HOKA gained two points of market share in the U.S. road running category over the past twelve months, outperforming competitors in Europe [12][18] - The U.S. marketplace remains dynamic, with a shift towards multi-brand shopping experiences impacting consumer behavior [9][30] Company Strategy and Development Direction - The company aims to achieve a balanced business model with 50% of sales from direct-to-consumer (DTC) and 50% from wholesale channels [10] - Strategic focus on brand building and marketing investments to enhance consumer awareness and expand market share for HOKA and UGG [8][39] - The company is committed to long-term sustainable growth, managing brands for profitability rather than chasing short-term sales [49][95] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer sentiment in the U.S., anticipating a more cautious consumer environment due to inflation and price increases [44][94] - The company remains confident in the growth trajectory of HOKA and UGG, with expectations for continued strong demand and market share gains [39][40] - Tariff impacts are expected to be significant in the second half of the fiscal year, with mitigation strategies in place to offset some of the pressures [37][70] Other Important Information - The company ended Q2 with $1.4 billion in cash and equivalents, with no outstanding borrowings [34] - Share repurchases totaled approximately $282 million during the quarter, reflecting the company's commitment to returning value to shareholders [35] Q&A Session Summary Question: About the guidance reinstatement and consumer behavior - Management acknowledged a cautious consumer outlook due to tariffs and price increases but emphasized the strength of their brands and long-term growth strategy [44][49] Question: Insights on the back half guidance for HOKA - Management indicated more pressure in Q3 with expectations for stronger growth in Q4, depending on consumer behavior during the holiday season [55][56] Question: DTC versus wholesale channel dynamics - Management expects improvements in DTC sales in Q3 and Q4, with a focus on balancing growth between DTC and wholesale channels [63][81] Question: Long-term margin structure and tariff impacts - Management confirmed that tariff pressures will continue to affect margins, but they are committed to maintaining strong profitability levels [68][70] Question: Pricing actions and consumer demand - Management reported that price increases have not negatively impacted demand, with strong sell-throughs for key styles [77][78]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 9% in the second quarter, with diluted earnings per share growing by 14% compared to the previous year [7][26] - For the first half of fiscal 2026, total company revenue grew by 12%, with HOKA revenue increasing by 15% and UGG revenue rising by 12% [7][8] - Gross margin for the second quarter was 56.2%, up 30 basis points from 55.9% in the previous year [27][28] - Diluted EPS for the quarter was $1.82, an increase of $0.23 from last year's $1.59, representing a 14% growth [29] Business Line Data and Key Metrics Changes - HOKA's revenue in the first half increased by 15%, driven by updates to key road-running franchises and strong international performance [11][19] - UGG's global revenue in the first half increased by 12%, with men's footwear growing at twice the rate of the overall brand [19][20] - HOKA's wholesale channel grew by 13% in the second quarter, while DTC grew by 8% [26][27] - UGG's wholesale increased by 17% in the second quarter, but DTC declined by 10% due to pressures from better in-stock positions with wholesale partners [27] Market Data and Key Metrics Changes - International regions were the primary drivers of revenue growth for both HOKA and UGG, with UGG and HOKA revenue in international markets increasing by 38% year-over-year [8][19] - HOKA gained two points of market share in the U.S. road-running category and outpaced competition in Europe [12][16] - In China, HOKA's premium positioning and product innovation drove resilient consumer demand, with significant growth in loyalty membership [17][18] Company Strategy and Development Direction - The company aims for continued international expansion and a balanced business model between direct-to-consumer and wholesale channels, targeting a 50/50 split [10][32] - HOKA is focusing on performance categories such as trail, hike, fitness, and lifestyle, with plans to introduce new products and enhance brand awareness [75] - UGG is leveraging brand activations and marketing campaigns to maintain cultural relevance and drive consumer engagement [23][36] Management's Comments on Operating Environment and Future Outlook - Management anticipates a more cautious consumer environment in the second half of fiscal 2026 due to the impact of tariffs and price increases [40][42] - The company remains confident in the long-term growth potential of both HOKA and UGG, emphasizing a focus on sustainable growth rather than short-term sales [36][45] - The guidance for fiscal 2026 includes total revenue expectations of approximately $5.35 billion, with HOKA projected to grow in the low teens and UGG in the low to mid-single digits [31][32] Other Important Information - The company repurchased approximately $282 million worth of shares during the second quarter, with $2.2 billion remaining authorized for share repurchases [30] - The anticipated unmitigated tariff impact for fiscal year 2026 is approximately $150 million, with mitigation efforts expected to offset $75 to $95 million of this pressure [33] Q&A Session Summary Question: About the guidance for HOKA and UGG growth expectations - Management indicated that the guidance reflects a cautious outlook due to anticipated consumer behavior changes and tariff impacts, but both brands are well-positioned for long-term growth [40][42] Question: Split between DTC and wholesale in Q3 and Q4 - The company expects improvements in DTC sales in the back half of the year, with a more significant growth in Q4 as the DTC comparison becomes easier [52][54] Question: Price actions taken and their impact on demand - Management stated that price increases have not negatively impacted demand, with strong sell-throughs for both brands [61] Question: Healthy order book for spring and summer 2026 - The company expressed satisfaction with the order book for spring and summer 2026, indicating an increase compared to previous periods [65][66] Question: Consumer behavior and market positioning - Management acknowledged consumer caution due to economic signals but emphasized that their brands are positioned better than most in the marketplace [70][71]

Core Insights - Deckers exceeded Q2 expectations with revenue of $1.43 billion, reflecting a year-over-year increase of 9.1% and an earnings per share (EPS) of $1.82 [1] Financial Performance - Revenue for Q2 reached $1.43 billion, marking a 9.1% increase compared to the previous year [1] - The earnings per share (EPS) reported was $1.82, surpassing prior estimates [1]

Core Insights - Deckers Outdoor Corp. reported second-quarter earnings of $1.82 per share, exceeding the Street estimate of $1.57 by 16% [2] - Quarterly revenue reached $1.43 billion, surpassing the analyst estimate of $1.41 billion [2] Brand Performance - HOKA brand net sales increased by 11.1% to $634.1 million compared to $570.9 million [6] - UGG brand net sales rose by 10.1% to $759.6 million compared to $689.9 million [6] - Other brands experienced a decline in net sales by 26.5% to $37.2 million compared to $50.6 million [6] Sales Channels - Wholesale net sales grew by 13.4% to $1.036 billion compared to $913.7 million [6] - Direct-to-Consumer (DTC) net sales decreased by 0.8% to $394.6 million compared to $397.7 million [6] - DTC comparable net sales fell by 2.9% [6] Management Commentary - CEO Stefano Caroti highlighted strong performance and international momentum for HOKA and UGG brands, which delivered double-digit growth [4] - Caroti expressed confidence in the company's ability to achieve its fiscal year 2026 outlook and capture significant opportunities ahead [5] Financial Outlook - The company anticipates fiscal GAAP EPS of $6.30 to $6.39, slightly above the $6.28 estimate, and revenue of $5.35 billion, below the $5.45 billion analyst estimate [6]

Core Insights - Deckers Brands experienced an 8% drop in shares after posting yearly guidance below analysts' expectations [1] Financial Performance - Net sales for Q2 of fiscal 2026 increased by 9.1% to $1.43 billion compared to $1.31 billion in the same period last year [2] - Net income for Q2 was $268.15 million, or $1.82 per diluted share, down from $357.95 million, or $2.74 per diluted share, in the prior year [2] - The results exceeded the company's own expectations for net sales, which were projected to be between $1.38 billion and $1.42 billion, and diluted earnings per share were expected to be between $1.50 and $1.55 [3] Brand Performance - Ugg led sales with $759.6 million, a 10.1% increase from $689.9 million in the same period last year [3] - Hoka's net sales increased by 11.1% to $634.1 million compared to $570.9 million in Q2 of the previous year [3] - The "Other" brands division, including Teva and Ahnu, saw a 26.5% decrease in net sales to $37.2 million from $50.6 million, attributed to the phase-out of Koolaburra brand operations [4] Sales Channels - Wholesale net sales increased by 13.4% to $1.04 billion compared to $913.7 million [5] - Direct-to-consumer channel net sales declined by 0.8% to $394.6 million from $397.7 million in the same period last year [5] Regional Performance - Domestic net sales declined by 1.7% to $839.5 million compared to $853.9 million in Q2 2025 [6] - International net sales increased by 29.3% to $591.3 million compared to $457.4 million [6] Management Commentary - The CEO of Deckers Brands highlighted the strong performance and international momentum of Hoka and Ugg, which delivered double-digit growth in Q2 [6] - The company emphasized its ability to connect with consumers through innovative products and expressed confidence in achieving its fiscal year 2026 outlook [7]

Core Viewpoint - The shoe company has decided to provide full-year guidance after previously withholding it due to macroeconomic uncertainties [1] Group 1 - The company is responding to improved visibility in the market, allowing it to offer a more confident outlook for the upcoming year [1] - Previous macroeconomic uncertainties had led the company to refrain from issuing guidance, indicating a cautious approach to forecasting [1] - The decision to provide guidance suggests a potential stabilization in the industry, which may benefit investor confidence [1]

Financial Performance - Second quarter fiscal 2026 revenue increased 9% to $1.43 billion compared to $1.31 billion, with a constant currency increase of 8.3%[6] - HOKA brand net sales rose 11.1% to $634.1 million, while UGG brand net sales increased 10.1% to $759.6 million[7] - Gross margin improved to 56.2% from 55.9%, and diluted earnings per share increased 14% to $1.82[6] - Full fiscal year 2026 net sales are expected to be approximately $5.35 billion, with HOKA projected to grow by a low-teens percentage and UGG by a low-to-mid-single-digit percentage[12] - Operating margin is projected to be approximately 21.5% for the full fiscal year 2026[12] Shareholder Actions - The company repurchased approximately 2.6 million shares for $282 million at an average price of $109.31 per share, with $2.2 billion remaining under its stock repurchase authorization[8] Expenses and Cash Flow - SG&A expenses as a percentage of net sales are expected to be approximately 34.5%[12] - Cash and cash equivalents increased to $1.414 billion from $1.226 billion year-over-year[7] - Inventories rose to $835.6 million compared to $777.9 million from the previous year[7] - The company had no outstanding borrowings as of September 30, 2025[7]

Core Insights - Deckers Outdoor Corporation is set to announce its fiscal second-quarter results on October 23, 2025, with expectations of adjusted earnings of $1.58 per share and revenue of $1.42 billion, reflecting a 1% decrease in earnings and an 8% increase in sales year-over-year [3] - The company's stock has declined nearly 50% year-to-date, contrasting with a 15% rise in the S&P 500, raising questions about its investment potential despite its historical growth and strong margins [4] - Market sentiment is a primary concern, as disappointing earnings or slowing growth in its HOKA brand could exert further pressure on the stock [5] Valuation - Deckers' current valuation appears reasonable, with a price-to-earnings ratio of 15.7, lower than the S&P 500 average of 24.2, and a price-to-sales ratio of 3.0, slightly below the market's 3.2, indicating that investors are acquiring a company with superior margins without incurring a premium [6] Growth - Over the past three years, Deckers has achieved revenue growth of approximately 16.5% per year, nearly three times the overall market growth rate, with a 16% increase in sales over the last twelve months and a 6.5% rise in the first quarter year-over-year [7] Profitability - Deckers boasts an operating margin of 23.6%, significantly above the S&P's 18.6%, and a net margin of 19.4%, demonstrating strong pricing power even in a softer consumer environment [9] Financial Stability - The company has a robust balance sheet with only $277 million in debt against a market cap of $15 billion, resulting in a debt-to-equity ratio of just 1.8%, and holds $1.9 billion in cash, providing significant financial flexibility [10] Historical Resilience - Deckers has a history of recovering quickly from market downturns, rebounding from a 48% drop during the inflation shock of 2022 within 308 days, and recovering from a 55% decline during the Covid market crash in just 76 days [11][12] Conclusion - Despite weak market sentiment, Deckers' strong fundamentals, including robust growth, high margins, and a solid balance sheet, position it well for potential recovery, especially if the upcoming earnings report exceeds expectations [13]