NYSE: DECK
DECKERS OUTDOOR CORPCIK 0000910521 · SIC 3021
We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories About this business →
Deckers growth slows to 9.8% as HOKA leads brand order; tariff headwinds compress margins
5 material changes detected. Sign up free to read the summary.
Deckers reports Q4 and FY2026 earnings, issues FY2027 guidance and 3-year outlook to 2030
3 material changes detected. Sign up free to read the summary.
Partner
Trade DECK commission-free
Open an account, get a free stock.
Investing involves risk. Free stock terms apply.
Summary not yet generated.
Summary not yet generated.
Summary not yet generated.
Summary not yet generated.
Summary not yet generated.
About DECKERS OUTDOOR CORP
Source: Item 1 (Business) from the 10-K filed May 22, 2026. Description as filed by the company with the SEC.
ITEM 1. BUSINESS
General
We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories
developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily
under three proprietary brands: HOKA, UGG, and Teva.
Our brands compete across the fashion and casual lifestyle, performance, running, and outdoor markets. We
believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through
quality domestic and international retailers and international distributors in our wholesale channel, and directly to
global consumers through our Direct-to-Consumer (DTC) channel, which is comprised of an e‑commerce and retail
store presence. We seek to differentiate our brands and products by offering diverse lines that emphasize fashion,
performance, authenticity, functionality, quality, and comfort, and products tailored to a variety of activities, seasons,
and demographic groups. Independent third-party contractors manufacture all of our products (independent
manufacturers).
Table of Contents 4
Brands
The HOKA brand is an authentic premium line of year-
round performance footwear, which offers enhanced
cushioning and inherent stability with minimal weight.
Originally designed for ultra-runners, the brand now
appeals to world champions, tastemakers, and everyday
athletes. Expansion into additional product categories,
elevated marketing campaigns, and investments in brand
Read full description ↓
experiences, coupled with strategic marketplace presence
have fueled both domestic and international sales growth
of the HOKA brand, which has quickly become a leading
brand within run and outdoor specialty wholesale
accounts and is growing across its global marketplace.
The HOKA brand’s product line includes running, trail,
hiking, fitness, and lifestyle footwear offerings, as well as
apparel and accessories.
The UGG brand is one of the most iconic and recognized
brands in our industry, which highlights our successful
track record of building niche brands into consumer-
focused fashion lifestyle market leaders. Born on the
California coast to warm surfers after they caught and
rode the waves, we create iconic products and
experiences that are made for people to feel comfort,
softness, warmth, and confidence. With loyal consumers
around the world, innovative products, and elevated
storytelling, the UGG brand has proven to be a highly
resilient consumer-focused line of premium footwear,
apparel, and accessories that has driven both domestic
and international sales growth with year-round product
offerings that appeal to a growing global audience and a
broad demographic.
Other brands consist primarily of the Teva brand. The
Teva brand’s products are built for a range of outdoor
pursuits and include a variety of footwear options, from
classic sandals and shoes to boots.
Table of Contents 5
The Other brands reportable operating segment includes financial results of the Koolaburra brand and AHNU brand,
for which the phase out of standalone operations were completed during the third and fourth quarters of fiscal year
2026, as well as financial results for the former Sanuk brand during the prior period through the sale date of August
15, 2024 (Sanuk Brand Sale Date).
Refer to the section titled “Reportable Operating Segments” below for further details about our reportable operating
segments.
Channel Distribution
We operate omnichannel global marketplaces for our brands where consumers can shop and experience our
brands seamlessly across both channels outlined below.
Wholesale. Our wholesale channel sells products to a network of third-party retailers, including partner retailers,
and distributors. This approach enables us to expand market reach and leverage the scale and operational
capabilities of our wholesale partners to serve a broad base of end consumers.
We sell our HOKA brand products primarily through full-service specialty retailers, outdoor and sporting goods
retailers, select online retailers, fashion lifestyle retailers, sports style partners, and higher-end department stores.
We continue to expand our HOKA brand wholesale distribution globally, including through additional mono-branded
locations operated by partner retailers.
We sell our UGG brand products primarily through fashion lifestyle retailers, higher-end department stores,
streetwear and sports style partners, online retailers and partner retailers. As the retail marketplace continues to
evolve to reflect changing consumer preferences, we continually review and evaluate our UGG wholesale
distribution and product segmentation approach.
We sell our Teva brand products primarily through outdoor and sporting goods retailers, fashion lifestyle retailers,
large national retail chains, higher-end department stores, and online retailers.
Direct-to-Consumer. Our DTC channel is comprised of our Company-owned e-commerce websites and retail
stores where products are sold at retail prices. Our e-commerce websites and retail stores are intertwined and
interdependent in an omnichannel marketplace, which engenders brand loyalty while increasing product sales and
improving our inventory productivity. In addition, we believe some of our consumers interact with both before making
purchasing decisions in store and online. For example, consumers may feel or try on products in our retail stores
and then place an order online later, or they may initially research products online and then make a purchase in
store.
E-Commerce Websites. Our global e-commerce websites provide us with an opportunity to directly engage and
connect with our consumers and communicate a consistent message that promotes awareness of our brands’
promises and key initiatives, offers targeted information to specific consumer demographics, and drives consumers
to our retail stores. Our e‑commerce websites provide consumers with access to the broadest selection and
assortment of our products. As of March 31, 2026, we operate Company-owned e-commerce websites in 54
different countries.
Retail Stores. Retail stores enable us to expose consumers to a curated selection of products and directly influence
our consumers’ experience with our brands. We continue to open mono-branded retail stores in key markets to
further grow the UGG brand and HOKA brand presence and appeal to a broader consumer base, while also
prioritizing the revitalization and recalibration of our existing retail store fleet to enhance overall brand impact and
consumer experience. As of March 31, 2026, we have a total of 203 global Company-owned retail stores (including
141 UGG brand retail stores and 62 HOKA brand retail stores), which include 105 concept stores and 98 outlet
stores.
Geographic Distribution
US Distribution. In our wholesale channel, we sell our products in the US through sales representatives, organized
by brand and either geography or account type, as each brand generally has certain strategic customers that expect
a dedicated sales team with specialized knowledge of the brand’s product offerings. In addition to our wholesale
Table of Contents 6
channel, we sell products directly to consumers through our DTC channel and fulfill online orders through our
warehouses and DCs, and retail stores. We currently distribute products sold in the US through our DCs in Moreno
Valley, California, and Mooresville, Indiana. We also distribute products to our wholesale channel customers through
a DC bypass program.
International Distribution. Collectively, our brands are sold internationally, including in Canada, Europe, Asia, and
Latin America. We sell our products internationally in our wholesale channel through wholly owned subsidiaries and
independent distributors, some of which operate partner retail stores. In addition, in certain countries we sell
products through our DTC channel. For our wholesale and DTC channels, we distribute our products through a
number of warehouses and DCs managed by 3PLs in certain international locations. We are currently transitioning
one of our international 3PLs to a new partner.
Refer to Part I, Item 2, “Properties,” and Note 7, “Leases,” of our consolidated financial statements in Part IV within
this Annual Report for further information on our properties and leases. Refer to Note 2, “Revenue Recognition and
Business Concentrations,” of our consolidated financial statements in Part IV within this Annual Report for further
information regarding geographic areas and concentration of related business risks.
Reportable Operating Segments
As of March 31, 2026, our three reportable operating segments include the worldwide operations of the HOKA
brand, UGG brand, and Other brands (collectively, our reportable operating segments). Other brands consist
primarily of the Teva brand. The Other brands reportable operating segment includes current and historical results of
brands previously sold and brands for which standalone operations have been phased out, as discussed below.
Consistent with our continuous focus on pursuing the most profitable long-term opportunities, we have taken the
following strategic actions to streamline our brand portfolio within the Other brands reportable operating segment:
•During the second quarter of fiscal year 2026, we began phasing out standalone operations for the
AHNU brand. We closed Ahnu.com as of October 1, 2025, and completed the phase out of the
AHNU brand in the wholesale channel during third and fourth quarters of fiscal year 2026. We did
not incur material exit costs or obligations associated with this plan.
•During the third quarter of fiscal year 2025, we began phasing out standalone operations for the
Koolaburra brand. We closed Koolaburra.com as of the end of fiscal year 2025 and completed the
phase out of the Koolaburra brand in the wholesale channel during the third and fourth quarters of
fiscal year 2026. We did not incur material exit costs or obligations associated with this plan.
•The sale of the Sanuk brand was completed during the second quarter of fiscal year 2025. The
financial results for the reportable operating segments present the former Sanuk brand through the
Sanuk Brand Sale Date.
Refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”
the section titled “Basis of Presentation,” in Note 1, “General,” and to Note 13, “Reportable Operating Segments,” of
our consolidated financial statements in Part IV within this Annual Report for further information on our reportable
operating segments.
Product Design and Development
We are committed to designing innovative, functional, and distinctive products that enable consumers to move
through the world with greater comfort, confidence, and performance. Our design and development teams
collaborate to create seasonal product lines that meet consumers where they are and exceed their expectations.
Each brand follows a disciplined product creation path that begins with engaging key consumer segments to gather
insights, conducting in-depth market and trend analysis, and incorporating color and material research. While this
process is consistent across the portfolio, each brand applies it differently based on its unique consumer and design
philosophy. The HOKA brand emphasizes high‑performance innovation informed by biomechanics, athlete
partnerships, and iterative dynamic testing to refine cushioning systems, rocker geometries, and technical
components. The UGG brand focuses on premium materials, sensory comfort, and modern lifestyle aesthetics, with
development centered on tactile experience, durability, and seasonal versatility. The Teva brand product creation
Table of Contents 7
focuses on offerings to reflect its modern outdoor versatility. These differentiated approaches ensure that each
brand delivers products that reflect its identity and the expectations of its target consumer.
Throughout the creation process, our teams conduct concept and design reviews, develop prototypes assembled by
our independent manufacturers, and complete multiple rounds of sampling for fit, comfort, and performance.
Depending on the brand and product application, this may include athlete testing or specialized laboratory testing
performed by external partners. Our internal research and development specialists collaborate with experts in
engineering, industrial design, chemistry, and materials science to advance new technologies, cushioning systems,
and material innovations that can be leveraged across brands. At every stage, we evaluate raw material availability
and cost, manufacturing capabilities and capacity, and target product pricing. Our multi‑brand portfolio enables us to
share learnings, scale innovations, and drive efficiencies across product lines, supporting both product excellence
and operational performance.
Marketing and Advertising
Our marketing and advertising efforts are designed to strengthen brand awareness, deepen consumer engagement,
and drive purchase intent across our portfolio of brands. We seek to connect with consumers through distinctive
brand storytelling, product innovation, consumer insights, and integrated marketing campaigns that communicate
the unique positioning of each brand and support long-term brand affinity.
We invest in a mix of digital advertising, social media, influencer and ambassador partnerships, experiential
activations, content, public relations, and traditional media to deliver relevant and impactful messaging. These
efforts are intended to attract new consumers, retain and engage existing consumers, and reinforce the authenticity,
relevance and desirability of our brands.
Our campaigns reflect the distinct positioning of each brand. The HOKA brand highlights its premium performance
heritage rooted in enhanced cushioning, inherent stability, and minimal weight, appealing to world champions,
tastemakers, and everyday athletes across running, trail, hiking, fitness, and lifestyle categories for its footwear,
apparel, and accessories. The UGG brand emphasizes its iconic status and year‑round premium footwear, apparel,
and accessories that resonate with a broad global audience, creating iconic products and experiences made for a
growing global demographic to feel comfort, softness, warmth, and confidence. The Teva brand emphasizes modern
outdoor versatility, responsible materials, and elevated design.
We continually evaluate the effectiveness of our marketing investments and adjust our strategies to align with
evolving consumer behaviors and marketplace trends.
Manufacturing and Supply Chain
The production of our finished goods is outsourced to independent manufacturers, the majority of which are in
Southeast Asia. During the year ended March 31, 2026, production of our finished goods was predominantly from
Vietnam and Indonesia, while less than 5% was from China or any other individual country. We continue to diversify
our independent manufacturers and the regions in which they operate.
Production by our independent manufacturers is performed in accordance with our detailed product specifications
and rigorous quality control and operating compliance standards. We maintain a buying office in Hong Kong, as well
as on-site supervisory offices in Vietnam, China, and Indonesia, which collectively serve as a strong link to our
independent manufacturers. We believe our substantial regional presence enhances our manufacturing processes
by providing predictability of material availability and ensuring adherence to quality control standards and final
design specifications.
We generally purchase products from independent manufacturers on the basis of individual purchase orders, rather
than maintaining long-term purchase commitments, which provides us greater flexibility to adapt to changing
consumer preferences, shifts in economic conditions, changes in international trade relations, and evolving
inventory management requirements.
The majority of the raw materials and components used in the production of our products by our independent
manufacturers are purchased from independent suppliers that we designate (designated suppliers), who work with
subcontractors that extract, process, or convert these raw materials.
Table of Contents 8
Sheepskin used to manufacture a significant portion of our UGG brand products is sourced primarily from Australia
and processed by two tanneries in China. We currently enter into fixed purchasing contracts with designated
suppliers of sheepskin and sugarcane-derived ethylene-vinyl acetate (sugarcane-derived EVA) to manage price
volatility and ensure availability. Excluding sheepskin, UGGplush, UGGpure, sugarcane-derived EVA, and certain
branded components, we believe that substantially all raw materials and components used to manufacture our
products are generally available from multiple sources at competitive prices. While alternative materials may be
available for certain branded components, which may be limited, such alternatives would not include the same
trademarks. We believe current supplies are sufficient to meet our anticipated demand for the next 12 months.
Refer to the subsection titled “Contractual Obligations” under the section “Liquidity” within Part II, Item 7,
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 8,
“Commitments and Contingencies,” of our consolidated financial statements in Part IV within this Annual Report for
further information on our purchase obligations.
We require our independent manufacturers and designated suppliers to adopt our Ethical Supply Chain Supplier
Code of Conduct (Supplier Code of Conduct), which requires them to comply with all local laws and regulations
governing human rights, working conditions, anti-corruption, restricted substances, and environmental compliance,
including animal welfare and conflict minerals, before we are willing to conduct business with them. Refer to the
section titled “Environmental, Social, and Governance” below for further information.
Inventory Management and Product Returns
We have an extended design and manufacturing process, which involves product designs, the purchase of raw and
other materials, inventory accumulation, the subsequent sale of finished product, and the collection of resulting
accounts receivable. This production cycle results in significant liquidity requirements and working capital
fluctuations throughout our fiscal year. Because the cycle typically involves long lead times, which requires us to
make manufacturing decisions several months in advance of anticipated customer demand, it is challenging for us
to accurately estimate and manage our inventory and working capital requirements.
We manage our inventory levels by considering existing orders, as well as forecasted sales and budgets by brand
for both the wholesale and DTC channels, taking into account customer delivery requirements. Our systems and
processes are designed to improve our product planning and forecasting, inventory control and supply chain
management capabilities, including our Company-owned e-commerce websites. In addition, added discipline
around SKU productivity, product purchasing decisions, lead time reduction, and selling excess inventory through
our liquidation channels, are key areas of focus that have enhanced inventory performance, including higher
inventory turnover, and partially mitigated product cost increases.
We encourage our customers to place a significant portion of orders through pre-season programs, which are
typically placed up to 12 months prior to shipment, while also allowing for in-season replenishment orders. These
pre-season programs enable us to better plan our production schedules, inventory levels, and shipping
requirements.
Our general practice, consistent with industry standards, is to offer customers in our wholesale channel the right to
return defective or improperly shipped merchandise, and to accept returns from our consumers in the DTC channel
between 30 to 90 days from the point of sale for cash or credit.
Refer to the section titled “Liquidity” within Part II, Item 7, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” within this Annual Report for further information on our liquidity.
Environmental, Social, and Governance
As a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, our
worldwide reach and impact is significant. We believe consumers are increasingly buying brands that deliver quality
products while striving for minimal environmental impact by employing sustainable business practices. Our
sustainability policies and strategies are informed by our ongoing efforts with multi-stakeholder initiatives, which
involve our stockholders, employees, suppliers, and customers, as well as other brands and non-governmental
organizations.
Table of Contents 9
Through our holistic ESG program, we are committed to advancing our sustainable business initiatives. As a result
of our efforts, during fiscal year 2026, we were recognized as a Net Zero Leader by Forbes, by Wall Street Journal
as one of the Best-Managed Companies and by Newsweek as one of America’s Most Responsible Companies, one
of the World’s Greenest Companies and one of America’s Most Charitable Companies.
ESG Oversight. Our Corporate Responsibility, Sustainability & Governance Committee (Corporate Governance
Committee) is comprised of four independent members of our Board of Directors (Board) who oversee our ESG
strategy and have ultimate oversight over all sustainability initiatives, strategies, and programs, including those
related to climate change, human rights, community engagement, charitable giving, and belonging. The Corporate
Governance Committee and Board regularly receive updates on the status of our ESG program. In addition, the
Audit & Risk Management Committee (Audit Committee) of the Board periodically assesses risk management,
including climate-related risks and policies, to ensure a consistent corporate strategy. The Board considers whether
the ESG program adequately identifies material risks in a timely fashion, implements appropriate responsive risk
management strategies, and ensures that management transmits necessary information with respect to material
risks within the organization. Our Chief Administrative and Legal Officer (CALO) is responsible for the day-to-day
management of our ESG program. The program’s execution is driven by our leadership team and various cross-
functional teams including our ethical sourcing, facilities, warehouses and DCs, brands, innovation, materials, and
supply chain teams.
Our ESG program aligns our internal teams with our Sustainable Development Goals (SDGs), which we adopt to
guide our ESG strategy, and establishes policies to encourage our partners and suppliers to employ sustainable
business practices. We annually assess risks related to ESG issues as part of our overall enterprise risk
management approach. In addition, our internal audit team provides periodic targeted reviews of our ESG-related
policies and procedures to the Audit Committee.
Sustainable Development Goals. We work to establish SDGs that we believe are the most relevant to our
business, our operations, our stockholders, and the communities in which we operate. We are a member of the
United Nations Global Compact (UNGC), the world’s largest voluntary corporate sustainability initiative. This
membership requires an annual statement of progress, which is reflected in our Corporate Responsibility and
Sustainability Report (Creating Change Report). Our CALO identifies specific SDGs established by the UNGC,
which we adopt to guide our ESG strategy.
Our annual Creating Change Report for fiscal year 2026, which will be published in calendar year 2026, will provide
more information regarding our fiscal year 2026 ESG achievements with a focus on the SDGs. In addition, during
fiscal year 2026, we adopted a comprehensive Climate Transition Plan, reflecting our commitment to proactive
environmental stewardship.
We recognize that agility and continuous improvement are essential to advancing our global ESG strategy, enabling
us to respond effectively to evolving challenges and opportunities in sustainability. To that end, we have aligned the
reporting standards included in our Climate Transition Plan to the Transition Plan Taskforce and our Creating
Change Report with various frameworks including the Financial Stability Board’s Task Force on Climate-Related
Financial Disclosures (commonly referred to as TCFD), Global Reporting Initiative’s (commonly referred to as GRI)
Core Standards, and Sustainability Accounting Standards Board’s (commonly referred to as SASB), and now part of
the International Finance Reporting Standard (or IFRS) Foundation Consumer Goods Sector Apparel, Accessories
and Footwear Index.
Stakeholder Engagement. We highly value stakeholder input and have consistently demonstrated our commitment
to maintaining open and interactive dialogue on ESG matters with our stakeholders, including non-governmental
organizations, employees, stockholders, suppliers, industry groups, communities, and governments, to ensure their
views are actively considered in executing our ESG program. Our stakeholder outreach program is led by a cross-
functional team that includes members of our investor relations, compliance, sustainability, and legal teams.
Additionally, we actively engage with our employees to obtain valuable feedback and track progress, including
through regular employee engagement surveys.
Table of Contents 10
Human Capital - Our People and Our Culture
Employees. As of March 31, 2026, we employed approximately 6,000 global employees, reflecting an increase of
9.1%, compared to March 31, 2025. This includes approximately 2,200 employees in our retail stores but excludes
temporary and seasonal employees.
Culture. Our key values, which guide our journey onward together to improve our business and create a better
world around us, and help hold us accountable to deliver on this purpose, are as follows:
Our values define our Company and serve as the driving force behind how we work together and with our
customers, consumers, partners, suppliers, and communities. We also have detailed policies that support our
commitment to ethical behavior and legal compliance across our Company. Through our open-door policy and
culture, employees are encouraged to approach their managers if they believe violations of standards or policies
have occurred and are able to make confidential and anonymous reports using a 24/7 online or telephone hotline
hosted by an independent third-party provider.
At Deckers, we believe our culture makes us unique. We regularly conduct employee surveys to understand our
employees’ experiences on a variety of topics focused on employee engagement. Our latest survey completed in
August 2025 had a participation rate of 92.3%. Of those employees who completed the survey, 88.4% noted they
were proud to work for Deckers.
We believe an inclusive workplace that promotes belonging for everyone brings together those with a unique set of
experiences, opinions, and thoughts on critical issues. In turn, these varied perspectives enhance our business and
drive better outcomes. Our people are at the center of everything we do. Their perspectives and passion for
innovation enable us to build brands and create products that people around the world love. We strive to create an
environment where employees can come as they are and are free to bring their authentic selves to work every day.
We publish workforce metrics in our annual Equal Employment Opportunity filing (EEO-1) which is publicly available
at deckers.com/responsibility/policies. The content of our website, including our annual EEO-1 filing, is not
incorporated by reference into this Annual Report or in any other report or document we file with the SEC.
Charitable Giving and Volunteering. Our charitable contributions, product donations, and employee volunteer
efforts are an essential part of our culture. We annually contribute to our local communities through monetary
donations, volunteer efforts, and in-kind donations. During fiscal year 2026, we donated over $5,400 to various non-
profit organizations around the globe, primarily to organizations focused on uplifting youth, community, belonging,
education, and the environment. We also continued our Art of Kindness events, where employees volunteer during
a week-long event in our local communities. Despite having only one event during fiscal year 2026, our employees
volunteered approximately 10,500 hours. Our strategic giving and community-engagement efforts continued to be
aligned with our SDGs.
Talent Development and Retention. The ability to attract, develop, and retain employees is critical to our long-term
success. We focus on our employees’ growth, creating experiences that align with our strategic priorities and
promote inclusion, performance, connection, and opportunities for development. For example, we offer a week fully
dedicated to employee learning, connection, and development across the globe (Explore Week), and four global
leadership development programs for leaders at varying levels (Voyagers, Trailblazers, Navigator, and Ascent).
Further, our executive leadership team and Board commit substantial time to succession planning, evaluating the
Table of Contents 11
bench strength of our leadership and supporting their career development while improving organizational
performance. We are proud to offer a wide range of programs intended to support global employee development
and retention.
We have demonstrated a history of investing in our workforce by offering competitive salaries and wages. We
provide tuition reimbursement for eligible US employees up to $5 thousand per calendar year. Further, to foster a
stronger sense of ownership and align the interests of management with stockholders, equity awards are granted to
a substantial proportion of our leadership team. In addition, employees across the US business have the opportunity
to purchase stock at a discounted price through our Employee Stock Purchase Plan. Further, we engage an
independent compensation consultant, FW Cook, which provides us with information to evaluate the effectiveness
of our executive compensation program, including competitive pay practices and trends in our industry, the design
and structure of our executive compensation program, and the formulation of and benchmarking against our peers
within our industry.
Employee Wellness. We strive to be one of the best places to work and recognize our employees are at different
stages of life and have individual needs. We offer affordable, innovative, comprehensive, and competitive benefits
package that range from health insurance, retirement plan, life insurance, disability, accident coverage, paid time
off, paid and unpaid leave including parental leave, mental health benefits, and other voluntary benefits such as
health savings accounts and our solar and electric car reimbursement program.
Employee Health and Safety. The health and safety of our employees is our highest priority. We have
comprehensive safety training programs to help ensure our employees know how to do their jobs safely and in
compliance with laws and regulations. We prioritize the safety of our facilities and work to ensure they are modern
and efficient.
Seasonality
A significant part of the UGG brand’s business has historically been seasonal, with the highest percentage of net
sales occurring in the third fiscal quarter, which has contributed to variation in results of operations from quarter to
quarter. However, as the HOKA brand’s net sales have increased as a percentage of our aggregate net sales, the
impacts of seasonality have been partially mitigated as HOKA brand sales are generally more evenly distributed
throughout the fiscal year, although quarterly results may fluctuate based on the timing of product launches. This
trend is expected to continue. In addition, we have further mitigated the impacts of seasonality by diversifying and
expanding our year-round product offerings across our brands.
Refer to Part I, Item 1A, “Risk Factors,” and Part II, Item 7, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” within this Annual Report for further discussion of the impacts of seasonality.
Competition
The industry and markets in which we operate are highly competitive. Our competitors include fashion, casual,
lifestyle, and athletic footwear companies, branded apparel companies, and retailers with their own private labels.
Although the industry is fragmented, some of our competitors are larger and have substantially greater resources,
and several sell products that compete directly with our products. In particular, we face competition from domestic
and international competitors selling products designed to compete directly or indirectly with products similar to
those of our HOKA brand and UGG brand. In addition, access to offshore manufacturing and the growth of e-
commerce have made it easier for new companies to enter the markets in which we compete, further increasing
competition in the footwear, apparel, and accessories industry.
We believe our ability to successfully compete depends on numerous factors, including our ability to predict, assess,
and respond quickly to changing consumer tastes and preferences, produce exceptional and innovative products
that meet expectations for product craft, quality and technical performance, maintain and enhance the image and
strength of our brands, price our products competitively, and manage the impacts of supply chain disruptions. In
addition, we believe our key customers face intense competition from other department stores, sporting goods
stores, retail specialty stores, and online retailers, among others, which could negatively impact the financial stability
of their businesses and their ability to conduct business with us. Refer to Part I, Item 1A, “Risk Factors,” within this
Annual Report for further discussion of the potential impact of competition on our business.
Table of Contents 12
Trademarks and Patents
We utilize trademarks for virtually all our products, and we believe having distinctive marks that are readily
identifiable is an important factor in establishing and maintaining a market for our products, promoting our brands,
and distinguishing our products from the products of others. We currently hold trademark registrations for “HOKA,”
“UGG,” and “Teva,” and other marks in the US, and for certain of the marks in many other countries, including
Canada, China, the United Kingdom (UK), various countries in the European Union (EU), Japan, and Korea. As of
March 31, 2026, we hold 201 designs and inventions with corresponding design or utility patent registrations, plus
29 designs and inventions which are currently pending registration. These patents expire at various times. Current
figures reflect natural expiration and strategic portfolio rationalization undertaken during the current period. We
regard our proprietary rights as valuable assets and vigorously protect such rights against infringement by third
parties.
Government Regulation
We are subject to a wide range of laws and regulations, including US federal, state, and local laws; the laws of
jurisdictions where we operate or plan to operate; and the laws of jurisdictions from which we source our products.
Based on the information and circumstances known to us at this time, compliance with such applicable laws and
regulations is not expected to have any material effect on our business, results of operations, financial condition, or
competitive position.
Available Information
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements
and information statements (and any amendments or supplements to the foregoing) filed with or furnished to the
SEC pursuant to the Exchange Act are available free of charge on our website at ir.deckers.com. Such documents
and information are available as soon as reasonably practicable after they are filed with or furnished to the SEC. We
also make certain corporate governance and responsibility documents available through our website at
ir.deckers.com/governance, deckers.com/responsibility, and deckers.com/responsibility/policies, respectively,
including Ethical Supply Chain Supplier Code of Conduct, Audit & Risk Management Committee Charter, Talent &
Compensation Committee Charter, Corporate Responsibility, Sustainability, & Governance Committee Charter,
Code of Ethics, Creating Change Report, Climate Transition Plan, Accounting and Finance Code of Ethics, EEO-1
Report, and Corporate Governance Guidelines. The information contained on or accessed through our website
does not constitute part of this Annual Report, and references to our website address within this Annual Report are
inactive textual references only.