Deckers Outdoor Corp. (DECK) F1Q27 Earnings Review 1Q beat and guidance raise balanced by weaker 2Q outlook

Equity Research 23 July 2026 | 7:39PM MDT

Deckers Outdoor Corp. (DECK) F1Q27 Earnings Review: 1Q beat and guidance raise balanced by weaker 2Q outlook

DECK 12m Price Target: $86.00 Price: $96.23 Downside: 10.6% SELL Brooke Roach, CFA DECK reported a modest 1Q EPS beat, with stronger gross margin | Goldman Sachs & Co. LLC delivery driving the outperformance. Management commentary was Mentesnot Adamu constructive across brands and geographies, with DTC remaining the | Goldman Sachs & Co. LLC primary growth driver and both HOKA and UGG continuing to generate healthy full price demand. HOKA growth moderated to Carly Chasen | Goldman Sachs & Co. LLC 7.7% this quarter (vs. 14.5% in F4Q), with wholesale growth constrained by planned international shipment timing shifts, though management emphasized that underlying demand remains strong Key Data _____________________________________ Market cap: $13.5bn (citing record EMEA reorders, continued strength in international Enterprise value: $11.4bn 3m ADTV: $224.8mn DTC, healthy full price sell through, and encouraging early reads on United States Clifton Pro and Clifton 11). UGG grew 4.9%, supported by continued Americas Apparel & Accessories Brands M&A Rank: 3 product diversification driving improved mix and further reducing GS Forecast __________________________________ dependence on colder-weather product categories. Gross margin 3/26 3/27E 3/28E 3/29E

expanded 65bps to 56.4%, benefiting from favorable channel and Revenue ($ mn) New Revenue ($ mn) Old 5,472.3 5,472.3 5,882.8 5,895.2 6,171.5 6,184.1 6,425.0 6,437.4 product mix, full price selling, and improved closeout management, EBITDA ($ mn) 1,338.7 1,360.8 1,424.2 1,486.0 EBIT ($ mn) 1,262.9 1,275.4 1,327.0 1,379.0 more than offsetting a ~150bp tariff headwind. This strength is EPS ($) New partially offset by continued near term tariff and freight headwinds, EPS ($) Old P/E (X) with management increasing its FY27 go-forward tariff assumption Dividend yield (%) -- -- -- -- to 12.5% from 10% and guiding 2Q gross margin below prior year Net debt/EBITDA (X) (1.4) (1.6) (1.8) (2.1)

levels. Looking ahead, management maintained its FY27 revenue 6/26 9/26E 12/26E 3/27E outlook while raising EPS guidance by $0.05 on stronger gross EPS ($)

margin expectations. GS Factor Profile ______________________________ Growth

While management’s updates are encouraging, we see several puts Financial Returns and takes in today’s update. 2Q guidance was issued below prior Multiple consensus, with management guiding 2Q HOKA growth at HSD% vs. consensus at 14%. Gross margins are expected to contract in 2Q Integrated

and SG&A to deleverage, driving EPS of $1.73-$1.78 vs. consensus Percentile 20th 40th 60th 80th 100th at $1.90. Management is calling for a 2H-weighted HOKA growth acceleration, with the company citing International wholesale and DECK relative to Americas Coverage DECK relative to Americas Apparel & Accessories Brands distributor timing. We believe this weaker near-term cadence is offsetting management’s constructive commentary regarding HOKA Source: Company data, Goldman Sachs Research estimates. See disclosures for details. share gains. Amidst a dynamic consumer and supply chain backdrop, we believe investors will remain focused on core underlying run-rate

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Deckers Outdoor Corp. (DECK)

Deckers Outdoor Corp. (DECK) Balance Sheet ($ mn) _______________________________________ SELL Rating since Jul 1, 2025 3/26 3/27E 3/28E 3/29E Cash & cash equivalents 1,907.2 2,117.3 2,614.6 3,178.0 Accounts receivable Inventory Ratios & Valuation __________________________________________ Other current assets /26 3/27E 3/28E 3/29E…