Core Insights - Companies are increasingly engaging in share buybacks as a response to stock price fluctuations, either when shares are dropping or rising [1][2][3] Group 1: Share Buybacks in Response to Stock Price Drops - Deckers Outdoor has seen its stock drop nearly 50% in 2025 and responded with a record $266 million in buybacks in Q1 and $183 million in Q2 [2] - This strategy indicates management's belief that the market is overreacting to negative news [2] Group 2: Share Buybacks Amid Rising Stock Prices - Spotify, VeriSign, and Newmont are all experiencing stock price increases and have announced significant increases in their share buyback capacities [3] - Spotify's stock is up approximately 40% in 2025, significantly outperforming the S&P 500's less than 7% return, and has authorized an additional $1 billion for buybacks [4][5] - VeriSign has provided a total return of about 29% in 2025 and announced a $913 million increase in buyback authorization, totaling around $1.5 billion, which is roughly 6% of its market value [7][8] - Newmont has achieved a 70% return in 2025 and added $3 billion to its buyback capacity, bringing the total to $3.2 billion, around 4.6% of its market capitalization [10] Group 3: Market Sentiment and Future Expectations - The buyback increases from these companies signal management's confidence in continued stock price rallies [5][10] - Analysts predict gold prices may rise to $4,000 per ounce by mid-2026, supporting Newmont's rationale for increasing buyback capacity [10] - Overall, substantial buyback increases are seen as positive indicators for investors, especially when aligned with strong cash flow [11]

PART I - Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 FY2026 financial statements show total assets at **$3.84 billion**, net sales up **16.9%** to **$964.5 million**, and net income of **$139.2 million**, with operating cash flow impacted by inventory build-up [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$3.84 billion**, driven by a significant rise in inventories, while stockholders' equity slightly decreased to **$2.47 billion** due to repurchases Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,720,416 | $1,889,188 | | Inventories | $849,351 | $495,226 | | Total current assets | $3,074,828 | $2,860,475 | | Total assets | $3,839,271 | $3,570,252 | | **Liabilities & Equity** | | | | Trade accounts payable | $732,881 | $417,955 | | Total current liabilities | $1,046,996 | $769,941 | | Total stockholders' equity | $2,467,479 | $2,513,013 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For Q1 FY2026, net sales increased **16.9%** to **$964.5 million**, driving net income up to **$139.2 million** and diluted EPS to **$0.93**, despite a slight decrease in gross margin Income Statement Highlights (in thousands, except per share data) | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $964,538 | $825,347 | +16.9% | | Gross profit | $537,906 | $470,000 | +14.4% | | Income from operations | $165,287 | $132,807 | +24.5% | | Net income | $139,203 | $115,625 | +20.4% | | Diluted EPS | $0.93 | $0.75 | +24.0% | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to **$2.47 billion** as of June 30, 2025, primarily due to **$183.0 million** in common stock repurchases offsetting net income - For the three months ended June 30, 2025, the company repurchased **1,666 thousand shares** of common stock for a total cost of **$183.0 million**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to **$36.1 million** due to a **$354.1 million** increase in inventories, while cash and cash equivalents ended at **$1.72 billion** Cash Flow Summary (in thousands) | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,146 | $112,650 | | Net cash used in investing activities | ($23,929) | ($22,521) | | Net cash used in financing activities | ($183,228) | ($151,861) | | **Net change in cash and cash equivalents** | **($168,772)** | **($63,654)** | - The significant decrease in operating cash flow was primarily driven by a **$354.1 million** use of cash for inventories, compared to a **$279.0 million** use in the prior year period[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail reportable segments, revenue disaggregation, tax rate changes, and the stock repurchase program, highlighting the phasing out of the Koolaburra brand and strong wholesale channel growth - The company's three reportable operating segments are the **HOKA brand**, **UGG brand**, and **Other brands** (Teva, AHNU, Koolaburra)[32](index=32&type=chunk) - The company is phasing out standalone operations for the **Koolaburra brand**, with plans to wind down its wholesale presence by the end of calendar year 2025[33](index=33&type=chunk) Net Sales by Channel (in thousands) | Channel | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | Wholesale | $652,364 | $514,782 | +26.7% | | Direct-to-Consumer | $312,174 | $310,565 | +0.5% | Net Sales by Geography (in thousands) | Geography | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | Domestic | $501,258 | $515,856 | -2.8% | | International | $463,280 | $309,491 | +49.7% | Segment Performance (in thousands) | Segment | Net Sales (Q1 FY2026) | Segment Income from Operations (Q1 FY2026) | | :--- | :--- | :--- | | HOKA | $653,119 | $253,528 | | UGG | $265,092 | $53,983 | | Other Brands | $46,327 | $7,753 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong Q1 FY2026 net sales growth of **16.9%** to **$964.5 million**, driven by HOKA and UGG brands, with operating income up **24.5%** despite gross margin pressure and a planned inventory build-up impacting cash flow [Financial Highlights](index=21&type=section&id=Financial%20Highlights) Q1 FY2026 highlights include **16.9%** net sales growth to **$964.5 million**, driven by HOKA and UGG brands, with operating margin improving to **17.1%** and diluted EPS rising **24.0%** Q1 FY2026 Financial Highlights vs. Prior Year | Metric | Performance | | :--- | :--- | | Net Sales Growth | +16.9% | | HOKA Brand Sales Growth | +19.8% | | UGG Brand Sales Growth | +18.9% | | Wholesale Channel Sales Growth | +26.7% | | International Sales Growth | +49.7% | | Operating Margin | 17.1% (+110 bps) | | Diluted EPS | $0.93 (+24.0%) | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales increased **16.9%** driven by HOKA and UGG, while gross margin declined to **55.8%** due to channel mix, yet income from operations rose **24.5%** to **$165.3 million** - HOKA brand net sales increased by **$107.9 million (19.8%)**, primarily due to higher global wholesale sales from market share gains and earlier shipments related to a European 3PL transition[87](index=87&type=chunk)[89](index=89&type=chunk) - UGG brand net sales grew by **$42.1 million (18.9%)**, driven by increased demand for year-round products and timing of sell-in for fall franchises in the wholesale channel[87](index=87&type=chunk)[89](index=89&type=chunk) - Gross margin decreased by **110 basis points**, primarily due to unfavorable channel mix (higher wholesale growth), increased promotional activity, and higher freight costs[90](index=90&type=chunk) - SG&A expenses increased by approximately **$35.4 million**, driven by higher marketing expenses for HOKA and UGG (**$13.3 million**), increased payroll for talent investment (**$8.9 million**), and higher rent from retail expansion (**$5.1 million**)[91](index=91&type=chunk)[94](index=94&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$1.72 billion** in cash, despite operating cash flow decreasing to **$36.1 million** due to inventory build-up, and has **$2.44 billion** remaining for stock repurchases - The company's cash and cash equivalents balance was **$1.72 billion** at the end of the quarter[100](index=100&type=chunk) - The decrease in net cash from operating activities was mainly due to higher inventory purchases to support demand and the transition of the European 3PL, along with higher trade accounts receivable[109](index=109&type=chunk) - As of June 30, 2025, the aggregate remaining approved amount under the stock repurchase program is **$2.44 billion**[106](index=106&type=chunk) - Net cash used in financing activities increased to **$183.2 million** from **$151.9 million** in the prior year, primarily due to a higher dollar value of stock repurchases[111](index=111&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposures, including commodity pricing, foreign currency, and interest rates, compared to the 2025 Annual Report[114](index=114&type=chunk) - There were no material changes in the quantitative and qualitative disclosures about market risk from the company's 2025 Annual Report[114](index=114&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[116](index=116&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter[117](index=117&type=chunk) PART II - Other Information [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in routine legal proceedings to protect its intellectual property rights, with management expecting no material adverse effect on financial condition or operations - The company is engaged in routine legal actions as part of its global program to protect its intellectual property rights, including claims of trademark counterfeiting and infringement[120](index=120&type=chunk) - Management believes that the final outcome of current ordinary course legal matters will not have a material adverse effect on the company's financial condition or results of operations[121](index=121&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's 2025 Annual Report on Form 10-K[123](index=123&type=chunk) - During the three months ended June 30, 2025, there were no material changes to the risk factors previously disclosed in the 2025 Annual Report[123](index=123&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,665,902 shares** for **$183.0 million** during the quarter, with **$2.44 billion** remaining under the authorized stock repurchase program Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Shares Repurchased | Weighted Average Price per Share | Dollar Value of Shares Repurchased | | :--- | :--- | :--- | :--- | | April 2025 | 588,656 | $107.02 | $62,998 | | May 2025 | 532,150 | $118.38 | $62,998 | | June 2025 | 545,096 | $104.56 | $56,994 | | **Total** | **1,665,902** | **$109.84** | **$182,991** | - The Board approved a new **$2.25 billion** stock repurchase authorization on May 21, 2025[127](index=127&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section discloses director and officer trading plans, noting Anne Spangenberg's Rule 10b5-1 plan covering **16,686 shares** during the quarter - During the quarter, Anne Spangenberg (President, Fashion Lifestyle Group) had a Rule 10b5-1 trading arrangement covering **16,686 shares**[132](index=132&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including officer certifications and Interactive Data Files (XBRL) - The report includes certifications from the Principal Executive Officer and Principal Financial and Accounting Officer as required by the Sarbanes-Oxley Act[134](index=134&type=chunk)

Core Viewpoint - Deckers Outdoor has shown signs of recovery in fiscal Q1 2026, with significant revenue growth and improved earnings, despite challenges from tariffs and a decline in U.S. sales [1][3][6]. Financial Performance - Deckers reported a revenue growth of 17%, surpassing the analyst forecast of 9.2% [3] - Adjusted earnings per share (EPS) grew by 24%, reaching 93 cents, contrary to expectations of a 10% decline [3] - International revenue surged by 50%, driven by strong performance from HOKA and UGG brands, marking the fastest growth in six quarters [4] - U.S. sales, however, fell nearly 3% in a challenging consumer environment [4] Margins and Costs - Gross margin decreased by 110 basis points to 55.8%, while operating margin increased by 105 basis points to over 17.1% [5] - The company has not seen negative impacts from initial price increases implemented on July 1, indicating potential for maintaining demand despite higher prices [8] Market Conditions and Tariffs - The sentiment around Deckers has been affected by tariffs, with the U.S. tariffs on Vietnam currently at 20%, a significant reduction from previous proposals [6][7] - Management has expressed optimism that price increases have not adversely affected demand, which is a positive indicator for future performance [8] Sales Channels - Direct-to-consumer (DTC) sales showed minimal growth, while wholesale sales increased by 26.7%, suggesting a potential rebound in DTC sales in the future [9] Stock Valuation and Forecast - The current stock price is $112.43, with a 12-month price target of $137.50, indicating a potential upside of 22.30% [10][11] - The stock trades at a forward P/E multiple of 18x, which is approximately 26% below its three-year average of over 24x, suggesting undervaluation [10][11]

Shares of Deckers have lost 42.5% year to date compared with the industry's decline of 8.2%. From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 18.47X, slightly down from the industry's average of 18.56X. It has a Value Score of C. Key Takeaways Deckers Outdoor Corporation's (DECK) international business continues to outperform, becoming a core growth engine. In the first quarter of fiscal 2026, international sales rallied 49.7% year over year to $463.3 million, far outpacing t ...

这两年，在中国中产消费者的鞋柜里，HOKA俨然成了高频出现的存在。 自2013年被Deckers Brands收入囊中后，HOKA便开启了高速增长之路：2016年成为美国铁人三项赛官 方跑鞋赞助商，2017年正式进驻中国市场。它标志性的厚底设计不仅为跑者带来出众的缓震与支撑性 能，更凭借柔软舒适的脚感，迅速俘获了中国中产群体的芳心。 2025年7月24日，HOKA的母公司Deckers Brands公布了截至2025年6月30日的2026财年第一季度财报， 并发布了截至2025年9月30日的第二财季财务展望。 这份业绩报告中，HOKA不仅创下历史最佳季度业绩，更以国际市场的强势表现扛起增长大旗。但在集 团整体稳健增长的同时，HOKA的增速却在同步下滑，其高速增长态势正面临考验。 历史最佳季度业绩 从整体业绩来看，Deckers Brands在2026财年第一季度表现稳健。数据显示，集团首季实现营收9.65亿 美元，同比增长16.9%；期内毛利率为55.8%，略低于去年同期的56.9%；经营利润为1.65亿美元，较去 年同期的1.33亿美元有所增长。摊薄后，每股收益为0.93美元。 这一亮眼的财务数据得益于HO ...

This footwear maker is already getting back to its winning ways. Deckers Outdoor (DECK 11.35%) has been quietly been one of the best-performing stocks on the market over its history, returning nearly 10,000% since its 1993 initial public offering (IPO). However, the stock has struggled more recently, diving this year amid concerns about slowing growth and tariffs. Even after a strong first-quarter earnings report last week, shares are still down 48% from their peak earlier this year. That sell-off presents ...

Financial Performance - Deckers Outdoor shares surged after surpassing Wall Street estimates [1] Market Dynamics - Strong demand in international markets boosted the footwear company's results [1] - Monitor chart levels for Deckers Outdoor [1]

Company Performance - Deckers Outdoor shares are higher due to strong international demand [1] Brand Performance - Ugg and Hoka shoe brands are driving the demand [1]

Core Viewpoint - Deckers Outdoor Corporation (DECK) delivered strong first-quarter fiscal 2026 results, exceeding expectations and showing year-over-year growth, primarily driven by the HOKA and UGG brands [1][9]. Financial Performance - DECK reported quarterly earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 68 cents and increasing from 75 cents in the prior-year quarter [4]. - Net sales rose 17% year over year to $964.5 million, exceeding the consensus estimate of $899 million; on a constant-currency basis, net sales grew 7.5% [4]. - Gross profit increased 14.4% year over year to $537.9 million, with a gross margin of 55.8%, down from 56.9% in the previous year but above the estimate of 54.4% [5]. - SG&A expenses climbed 11% year over year to $372.6 million, representing 38.6% of revenues, a decrease of 230 basis points from the previous year [6]. - Operating income was $165.3 million, up 24.5% from $132.8 million in the prior-year quarter, with an operating margin of 17.1%, an increase of 100 basis points [6]. Brand Performance - HOKA brand sales increased 19.8% year over year to $653.1 million, exceeding the projected $609.7 million [7]. - UGG brand sales grew 18.9% to $265.1 million, surpassing the estimate of $238.5 million [7]. - Other brands, including Teva, AHNU, and Koolaburra, saw a decline of 19% year over year to $46.3 million, below the estimate of $52.6 million [7]. Sales Channels and Geography - Wholesale net sales increased 26.7% year over year to $652.4 million, while DTC net sales rose 0.5% to $312.2 million; however, DTC comparable net sales dipped 2.2% [8]. - Domestic net sales decreased 2.8% to $501.3 million, while international net sales surged 49.7% to $463.3 million [10]. Future Outlook - The company did not provide formal guidance for fiscal 2026 due to macroeconomic uncertainties but expects HOKA to remain its fastest-growing brand and international sales to outpace U.S. growth [2][12]. - Management anticipates a year-over-year decrease in gross margin due to elevated tariffs, increased promotions, and higher freight rates, partially offset by selective price increases [13]. - For Q2 fiscal 2026, DECK expects net sales between $1.38 billion and $1.42 billion, with HOKA projected to grow about 10% and UGG expected to increase in the mid-single digits [16]. - Earnings per share are anticipated to be between $1.50 and $1.55, compared to $1.59 in the prior-year period [18].

Core Viewpoint - Deckers Outdoor exceeded expectations in its Q1 report, alleviating investor concerns about growth despite earlier stock declines due to tariff fears and weakening consumer sentiment [1][2]. Financial Performance - Revenue grew 17% to $964.5 million, surpassing the consensus estimate of $900.4 million [4]. - Hoka revenue increased by 19.8% to $653.1 million, while UGG sales rose 18.9% to $265.1 million [5]. - Wholesale revenue surged 26.7% to $652.4 million, and international sales jumped 49.7% to $463.3 million, driven by strong performance in China [6]. - Gross margin decreased from 56.9% to 55.8%, but operating income rose from $132.8 million to $165.3 million, with EPS increasing from $0.75 to $0.93, exceeding estimates of $0.68 [7]. Future Outlook - The company anticipates a $185 million increase in costs due to new tariffs, which could impact revenue by nearly 4% [8]. - For Q2, revenue is expected to be between $1.38 billion and $1.42 billion, reflecting a 7% increase at the midpoint, with EPS projected between $1.50 and $1.55 [9].