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 total revenue of $965 million, a 17% increase compared to the previous year [8][31] - Diluted earnings per share rose 24% to $0.93 from $0.75 in the prior year [8][31] - Gross margin decreased to 55.8%, down 110 basis points from 56.9% last year [31] Business Line Data and Key Metrics Changes - HOKA's global revenue increased 20% to $653 million, with wholesale up 30% and DTC up 3% [10][23] - UGG's global revenue rose 19% to $265 million, with wholesale increasing 30% while DTC decreased by 1% [23][24] Market Data and Key Metrics Changes - International revenue for Deckers increased by 50%, significantly contributing to overall growth [8] - EMEA and China were the largest contributors to international growth for both HOKA and UGG [11][24] Company Strategy and Development Direction - The company focuses on building premium brands through authenticity, innovation, and purpose [9] - HOKA aims to enhance its market presence through strategic retail expansions and improved consumer experiences [15][63] - UGG is leveraging its three sixty-five initiative to drive year-round sales, particularly in men's footwear and sandals [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and emphasized the importance of brand strength [30][42] - The company is cautious about consumer reactions to price increases and tariffs but remains optimistic about brand momentum [42][66] Other Important Information - The company repurchased approximately $183 million worth of shares during the first quarter [35] - The company ended the quarter with $1.7 billion in cash and equivalents, with no outstanding borrowings [35] Q&A Session Summary Question: HOKA's second quarter guidance and inventory status - Management indicated that HOKA is expected to grow 10% in Q2, with improvements in both wholesale and DTC channels [48][50] - Inventory for older models like Bondi Eight and Clifton Nine is largely cleared, with positive performance for Arahi Eight [51] Question: DTC growth and retail strategy - Management confirmed expectations for balanced growth between wholesale and DTC, with improvements anticipated in the U.S. market [60][62] - The company plans to expand its retail footprint, with new stores opening in key international markets [63] Question: Price increase strategy - The company is implementing selective price increases, with some products seeing increases of around $5 [71][75] - Price adjustments will be evaluated based on tariff impacts and consumer response [75] Question: HOKA's international performance and growth drivers - International growth is driven by strong sell-through rates and new distribution partnerships [91] - Management remains optimistic about healthy order books for the upcoming seasons [92] Question: SG&A outlook and spending control - SG&A expenses are expected to increase due to investments in brand building and marketing [94] - The company will manage expenses efficiently while continuing to invest in growth initiatives [96]