Can Deckers Maintain Its Growth Trajectory Despite Margin Pressures?

Profitability, however, showed strain. Gross margin declined 110 basis points to 55.8% as wholesale growth outpaced direct-to-consumer ("DTC") sales, promotions increased and freight costs rose. These pressures outweighed the benefits from a favorable product mix and foreign exchange. Operating margin contracted despite SG&A leverage, which improved 230 basis points due to disciplined expense management and one-time currency gains. Management acknowledged that the operating margin for fiscal 2026 will likel ...