Q1 2027 Deckers Outdoor Corp Earnings Call Transcript
Key Points
- Deckers Outdoor Corp (DECK) achieved over $1 billion in revenue for the first time in its history during the first quarter, with a 5.7% increase compared to the previous year.
- The company's direct-to-consumer (DTC) channel saw a significant growth of 13%, with HOKA and UGG brands maintaining strong momentum.
- Deckers Outdoor Corp (DECK) reported a gross margin increase to 56.4%, up 60 basis points from the previous year, driven by favorable channel and product mix.
- The HOKA brand experienced an 8% revenue increase, driven by strong global DTC growth and successful product launches like the Clifton Pro.
- UGG's global revenue increased by 5%, with strong performance in international markets, particularly in Asia, and successful product mix shifts supporting higher gross margins.
- The company faces ongoing geopolitical conflicts and related supply chain logistics and cost impacts, which could affect future performance.
- Deckers Outdoor Corp (DECK) is experiencing increased SG&A expenses, up 13% from the previous year, due to investments in brand initiatives and higher rent costs.
- The company is dealing with tariff-related challenges, with an increased go-forward tariff rate assumption from 10% to 12.5%, impacting gross margins.
- There are concerns about the dynamic macroeconomic environment, including changes in consumer behavior and fluctuations in foreign currency exchange rates.
- The wholesale channel growth was impacted by planned international shipment timing differences, which could affect revenue recognition in future quarters.
Please stand by. Your meeting is about to begin. Good afternoon, everyone, and thank you for standing by. Welcome to the Deckers Brands first quarter fiscal 2027 earnings conference call. (Operator Instructions) And finally, I would like to remind everyone that this conference call is being recorded. I would now like to turn the call over to Ms. Erinn Kohler, Vice President, Investor Relations and Corporate Planning. Please go ahead, ma'am.
Hello, and thank you, everyone, for joining us today. On the call are Stefano Caroti, President and Chief Executive Officer, and Steven Fasching, Chief Financial Officer. Before we begin, I would like to remind everyone of the company's safe harbor policy.
Please note that certain statements made on this call are forward-looking statements within the meaning of the federal securities laws, which are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor
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