Item 1. FINANCIAL STATEMENTS

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollar and share data amounts in thousands, except par value)

			June 30, 2025						March 31, 2025
ASSETS									(AUDITED)
Cash and cash equivalents			$	1,720,416					$	1,889,188
Trade accounts receivable, net of allowances ($38,321 and $32,883 as of June 30, 2025, and March 31, 2025, respectively)			376,474						332,872
Inventories			849,351						495,226
Prepaid expenses			52,604						39,294
Other current assets			60,624						67,282
Income tax receivable			15,359						36,613
Total current assets			3,074,828						2,860,475
Property and equipment, net of accumulated depreciation ($420,663 and $402,964 as of June 30, 2025, and March 31, 2025, respectively)			332,311						325,599
Operating lease assets			269,248						237,352
Goodwill			13,990						13,990
Other intangible assets, net of accumulated amortization ($26,099 and $25,014 as of June 30, 2025, and March 31, 2025, respectively)			15,667						15,699
Deferred tax assets, net			85,798						77,591
Other assets			47,429						39,546
Total assets			$	3,839,271					$	3,570,252
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable			$	732,881					$	417,955
Accrued payroll			68,975						125,417
Operating lease liabilities (Note 5)			65,254						54,453
Other accrued expenses			151,448						142,120
Income tax payable			22,735						23,299
Value added tax payable			5,703						6,697
Total current liabilities			1,046,996						769,941
Long-term operating lease liabilities (Note 5)			246,817						222,522
Income tax liability			19,761						13,587
Other long-term liabilities			58,218						51,189
Total long-term liabilities			324,796						287,298
Commitments and contingencies (Note 5)
Stockholders’ equity
Common stock ($0.01 par value per share; 750,000 shares authorized; 148,542 and 150,201 shares issued and outstanding as of June 30, 2025, and March 31, 2025, respectively)			1,485						1,502
Additional paid-in capital			261,782						253,466
Retained earnings			2,262,301						2,307,699
Accumulated other comprehensive loss (Note 7)			(58,089)						(49,654)
Total stockholders’ equity			2,467,479						2,513,013
Total liabilities and stockholders’ equity			$	3,839,271					$	3,570,252

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(dollar and share data amounts in thousands, except per share data)

									Three Months Ended June 30,
															2025						2024
Net sales (Note 2 and Note 9)															$	964,538					$	825,347
Cost of sales															426,632						355,347
Gross profit															537,906						470,000
Selling, general, and administrative expenses (Note 9)															372,619						337,193
Income from operations (Note 9)															165,287						132,807
Interest income															(18,696)						(17,252)
Interest expense															935						1,031
Other income, net															(18)						(125)
Total other income, net															(17,779)						(16,346)
Income before income taxes															183,066						149,153
Income tax expense (Note 4)															43,863						33,528
Net income															139,203						115,625
Other comprehensive loss, net of tax
Unrealized (loss) gain on cash flow hedges															(20,209)						856
Foreign currency translation gain (loss)															11,774						(4,656)
Total other comprehensive loss, net of tax															(8,435)						(3,800)
Comprehensive income															$	130,768					$	111,825
Net income per share
Basic															$	0.93					$	0.76
Diluted															$	0.93					$	0.75
Weighted-average common shares outstanding (Note 8)
Basic															149,344						152,867
Diluted															149,635						153,483

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(amounts in thousands)

			Three Months Ended June 30, 2025
			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
			Shares						Amount
Balance, March 31, 2025			150,201						$	1,502					$	253,466					$	2,307,699					$	(49,654)					$	2,513,013
Stock-based compensation			3						—						8,553						—						—						8,553
Shares issued upon vesting			4						—						—						—						—						—
Shares withheld for taxes			—						—						(237)						—						—						(237)
Repurchases of common stock (Note 7)			(1,666)						(17)						—						(182,974)						—						(182,991)
Excise taxes related to repurchases of common stock			—						—						—						(1,627)						—						(1,627)
Net income			—						—						—						139,203						—						139,203
Total other comprehensive loss			—						—						—						—						(8,435)						(8,435)
Balance, June 30, 2025			148,542						$	1,485					$	261,782					$	2,262,301					$	(58,089)					$	2,467,479

			Three Months Ended June 30, 2024
			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
			Shares						Amount
Balance, March 31, 2024			153,554						$	1,536					$	243,050					$	1,913,615					$	(50,733)					$	2,107,468
Stock-based compensation			2						—						8,231						—						—						8,231
Shares issued upon vesting			6						—						—						—						—						—
Exercise of stock options			54						1						600						—						—						601
Shares withheld for taxes			—						—						(495)						—						—						(495)
Repurchases of common stock (Note 7)			(1,062)						(11)						—						(151,956)						—						(151,967)
Excise taxes related to repurchases of common stock			—						—						—						(1,181)						—						(1,181)
Net income			—						—						—						115,625						—						115,625
Total other comprehensive loss			—						—						—						—						(3,800)						(3,800)
Balance, June 30, 2024			152,554						$	1,526					$	251,386					$	1,876,103					$	(54,533)					$	2,074,482

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

			Three Months Ended June 30,
			2025						2024
OPERATING ACTIVITIES
Net income			$	139,203					$	115,625
Reconciliation of net income to net cash provided by (used in) operating activities:
Depreciation, amortization, and accretion			19,424						17,061
Amortization on cloud computing arrangements			556						465
Bad debt expense (benefit)			597						(3,291)
Deferred tax (benefit) expense			(713)						170
Stock-based compensation			8,739						8,346
Loss on disposal of assets			22						79
Changes in operating assets and liabilities:
Trade accounts receivable, net			(44,199)						(3,272)
Inventories			(354,125)						(278,972)
Prepaid expenses and other current assets			(8,817)						39,816
Income tax receivable			21,254						14,079
Net operating lease assets and lease liabilities			1,925						(486)
Other assets			(8,438)						(4,073)
Trade accounts payable			314,845						266,679
Other accrued expenses			(66,301)						(71,398)
Income tax payable			(565)						4,340
Other long-term liabilities			12,739						7,482
Net cash provided by operating activities			36,146						112,650
INVESTING ACTIVITIES
Purchases of property and equipment			(23,940)						(22,521)
Proceeds from sale of assets			11						—
Net cash used in investing activities			(23,929)						(22,521)
FINANCING ACTIVITIES
Proceeds from exercise of stock options			—						601
Repurchases of common stock			(182,991)						(151,967)
Cash paid for shares withheld for taxes			(237)						(495)
Net cash used in financing activities			(183,228)						(151,861)
Effect of foreign currency exchange rates on cash and cash equivalents			2,239						(1,922)
Net change in cash and cash equivalents			(168,772)						(63,654)
Cash and cash equivalents at beginning of period			1,889,188						1,502,051
Cash and cash equivalents at end of period			$	1,720,416					$	1,438,397

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

(continued)

			Three Months Ended June 30,
			2025						2024
SUPPLEMENTAL CASH FLOW DISCLOSURE
Cash paid during the period
Income taxes			$	16,923					$	14,998
Interest			780						414
Operating leases			20,437						16,339
Non-cash investing activities
Changes in trade accounts payable and other accrued expenses for purchases of property and equipment			80						(2,582)
Accrued for asset retirement obligation assets related to leasehold improvements			214						975
Non-cash financing activities
Accrued excise taxes related to repurchases of common stock			1,627						1,181

See accompanying notes to the condensed consolidated financial statements.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

NOTE 1. GENERAL

The Company. Deckers Outdoor Corporation and its wholly owned subsidiaries (collectively, the Company) is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company’s five proprietary brands include the HOKA, UGG, Teva, AHNU, and Koolaburra brands. Refer to the section below entitled “Reportable Operating Segments” for information on recent developments with the Koolaburra brand and Sanuk brand.

The Company sells its products through quality domestic and international retailers and international distributors in its wholesale channel, and directly to global consumers through its Direct-to-Consumer (DTC) channel, which is comprised of an e-commerce and retail store presence. Independent third-party contractors manufacture all of the Company’s products.

Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes thereto (referred to herein as condensed consolidated financial statements) as of June 30, 2025, and for the three months ended June 30, 2025 (current period), and 2024 (prior period) are prepared in accordance with generally accepted accounting principles in the US (US GAAP) for interim financial information pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all the information and disclosures required by US GAAP for annual financial statements and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2025, is derived from the Company’s audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all normal and recurring entries necessary to fairly present the results of the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s 2025 Annual Report.

Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Reportable Operating Segments. As of June 30, 2025, the Company’s three reportable operating segments include the worldwide operations of the HOKA brand, UGG brand, and Other brands (primarily consisting of the Teva brand, AHNU brand, and Koolaburra brand) (collectively, the Company’s reportable operating segments). Refer to Note 9, “Reportable Operating Segments,” for further information on the Company’s reportable operating segments.

During the third quarter of fiscal year 2025, the Company began taking steps to phase out the standalone operations for the Koolaburra brand in order to maintain focus on the Company’s most significant organic opportunities. The Company closed Koolaburra.com as of March 31, 2025, and plan to wind down the Koolaburra brand in the wholesale channel by the end of calendar year 2025.

In addition, the Company completed the sale of the Sanuk brand during the second quarter of its prior fiscal year. The financial results for the Company’s reportable operating segments present the former Sanuk brand within the Other brands reportable operating segment through the brand’s sale date, August 15, 2024.

Use of Estimates. The preparation of the Company’s condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. In addition, the Company has considered the potential impact of macroeconomic factors, including inflation, changes in tariff rates, foreign currency exchange rate volatility, changes in interest rates, changes in commodity pricing, changes in discretionary spending, and recessionary concerns, on its business and operations. Although the full impact of these factors is unknown, the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ materially from these estimates and assumptions, which may result in material effects on

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

the Company’s financial condition, results of operations, and liquidity. Refer to Note 1, “General,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information on the significant areas requiring the use of management estimates and assumptions.

Foreign Currency Translation. The Company considers the US dollar as its functional currency. The Company’s wholly owned foreign subsidiaries have various assets and liabilities, primarily cash, receivables, and payables, which are denominated in currencies other than its functional currency. The Company remeasures these monetary assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses that are recorded in selling, general, and administrative (SG&A) expenses in the condensed consolidated statements of comprehensive income as incurred. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at the end of the reporting period, which results in financial statement translation gains and losses recorded in other comprehensive income or loss (OCI), net of tax, in the condensed consolidated statements of comprehensive income.

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, the Company has mitigated the impacts of seasonality by diversifying and expanding product offerings with additional year-round styles. In addition, as the HOKA brand’s net sales, which generally occur more evenly throughout the fiscal year, continue to increase as a percentage of the Company’s aggregate net sales, the Company expects to reduce the impacts of seasonality in future periods.

Supplier Finance Program**.** As of June 30, 2025 and March 31, 2025, the Company had immaterial balances outstanding related to the Supplier Finance Program (SFP) that are presented in trade accounts payable in the condensed consolidated balance sheets. Refer to Note 14, “Supplier Finance Program,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information regarding the SFP.

Recent Accounting Pronouncements. There have been no developments to recently issued accounting standards relative to those disclosed in the 2025 Annual Report, including the expected dates of adoption and impact on disclosures in the Company’s annual and interim consolidated financial statements.

NOTE 2. REVENUE RECOGNITION AND BUSINESS CONCENTRATIONS

Disaggregated Revenue. Refer to Note 9, “Reportable Operating Segments,” for further information on the Company’s disaggregation of revenue by reportable operating segment.

Channel Concentration. Net sales by channel was as follows:

															Three Months Ended June 30,
															2025						2024
Wholesale															$	652,364					$	514,782
Direct-to-Consumer															312,174						310,565
Total															$	964,538					$	825,347

Geographic Concentration**.** Net sales by geography was as follows:

									Three Months Ended June 30,
															2025						2024
Domestic															$	501,258					$	515,856
International															463,280						309,491
Total															$	964,538					$	825,347

For the three months ended June 30, 2025, and 2024, no single foreign country comprised 10.0% or more of the Company’s total net sales.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

Customer Concentration. For the three months ended June 30, 2025, and 2024, no single global customer comprised 10.0% or more of the Company’s total net sales. As of June 30, 2025, the Company has one customer that represents 12.1% of trade accounts receivable, net, compared to one customer that represents 13.6% of trade accounts receivable, net, as of March 31, 2025. Management performs regular evaluations concerning the ability of the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful accounts based on these evaluations.

Sales Return Asset and Liability. Sales returns are a refund asset for the right to recover the inventory and a refund liability for the stand-ready right of return. The refund asset for the right to recover the inventory is recorded in other current assets and the related refund liability is recorded in other accrued expenses in the condensed consolidated balance sheets.

The following tables summarize changes in the estimated sales returns for the periods presented:

			Sales Return Asset						Sales Return Liability
Balance, March 31, 2025			$	21,120					$	(63,462)
Net additions to sales return liability (1)			7,369						(40,888)
Actual returns			(13,556)						55,508
Balance, June 30, 2025			$	14,933					$	(48,842)

			Sales Return Asset						Sales Return Liability
Balance, March 31, 2024			$	13,866					$	(55,327)
Net additions to sales return liability (1)			10,976						(40,741)
Actual returns			(14,077)						58,277
Balance, June 30, 2024			$	10,765					$	(37,791)

(1) Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns.

Contract Liabilities. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets and include loyalty programs and other deferred revenue.

Loyalty Programs. Activity related to loyalty programs was as follows:

			Three Months Ended June 30,
			2025						2024
Beginning balance			$	(18,566)					$	(17,586)
Redemptions and expirations for loyalty certificates and points recognized in net sales			4,994						5,060
Deferred revenue for loyalty points and certificates issued			(4,205)						(4,575)
Ending balance			$	(17,777)					$	(17,101)

Deferred Revenue. Activity related to deferred revenue was as follows:

			Three Months Ended June 30,
			2025						2024
Beginning balance			$	(27,305)					$	(9,591)
Additions of customer cash payments			(27,176)						(27,101)
Revenue recognized			25,573						9,254
Ending balance			$	(28,908)					$	(27,438)

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

Refer to Note 2, “Revenue Recognition,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information on the Company’s variable consideration accounting policies.

NOTE 3. FAIR VALUE MEASUREMENTS

The Company measures certain financial assets and liabilities at fair value on a recurring basis. Refer to Note 4, “Fair Value Measurements,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information on the Company’s fair value accounting policies.

Assets and liabilities that are measured on a recurring basis at fair value in the condensed consolidated balance sheets are as follows:

			As of						Measured Using
			June 30, 2025			Level 1						Level 2						Level 3
Assets:
Cash equivalents:
Money-market funds			$	1,376,741					$	1,376,741					$	—					$	—
Other assets:
Non-qualified deferred compensation asset			19,593						19,593						—						—
Total assets measured at fair value			$	1,396,334					$	1,396,334					$	—					$	—
Liabilities:
Other accrued expenses:
Designated Derivative Contracts liability			$	(24,676)					$	—					$	(24,676)					$	—
Non-qualified deferred compensation liability			(2,346)						(2,346)						—						—
Non-Designated Derivative Contracts liability			(354)						—						(354)						—
Other long-term liabilities:
Non-qualified deferred compensation liability			(28,932)						(28,932)						—						—
Total liabilities measured at fair value			$	(56,308)					$	(31,278)					$	(25,030)					$	—

			As of						Measured Using
			March 31, 2025			Level 1						Level 2						Level 3
Assets:
Cash equivalents:
Money-market funds			$	1,485,555					$	1,485,555					$	—					$	—
Other current assets:
Designated Derivative Contracts asset			2,163						—						2,163						—
Non-Designated Derivative Contracts asset			75						—						75						—
Other assets:
Non-qualified deferred compensation asset			16,967						16,967						—						—
Total assets measured at fair value			$	1,504,760					$	1,502,522					$	2,238					$	—
Liabilities:
Other accrued expenses:
Non-qualified deferred compensation liability			$	(2,345)					$	(2,345)					$	—					$	—
Designated Derivative Contracts liability			(64)						—						(64)						—
Other long-term liabilities:

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

			As of						Measured Using
			March 31, 2025			Level 1						Level 2						Level 3
Non-qualified deferred compensation liability			(22,793)						(22,793)						—						—
Total liabilities measured at fair value			$	(25,202)					$	(25,138)					$	(64)					$	—

The fair value of Designated Derivative Contracts is determined using quoted forward spot rates at the end of the applicable reporting period from counterparties, which are corroborated by market-based pricing (Level 2), with related assets and liabilities recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets. Refer to Note 6, “Derivative Instruments,” for further information, including the definition of the term Designated Derivative Contracts.

NOTE 4. INCOME TAXES

Income tax expense and the effective income tax rate were as follows:

									Three Months Ended June 30,
															2025						2024
Income tax expense															$	43,863					$	33,528
Effective income tax rate															24.0		%				22.5		%

The tax provisions during the three months ended June 30, 2025, and 2024, were computed using the estimated effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the fiscal years ending March 31, 2026, and ended March 31, 2025, respectively, and were adjusted for discrete items that occurred within the periods presented above. During the current period, the net change in the effective income tax rate, compared to the prior period, was primarily due to discrete tax expense for reserve adjustments and a reduced benefit for stock-based compensation, partially offset by net discrete tax benefits for audit settlements and changes in jurisdictional mix of worldwide income before income taxes.

Recent Tax Law Changes. On July 4, 2025, H.R. 1, also known as the One Big Beautiful Bill Act (OBBBA), was signed into law. The OBBBA includes, among other provisions, changes to US corporate income tax law, including restoration of accelerated depreciation on capital expenditures, deductible research and experimental expenditures, and modifications to the international tax framework. The Company continues to evaluate the potential impacts of the law on its condensed consolidated financial statements and expects to recognize the impact of the law in the period of enactment in its next fiscal quarter.

NOTE 5. COMMITMENTS AND CONTINGENCIES

Leases. The Company enters into operating lease contracts, which primarily relate to retail stores, showrooms, offices, and distribution facilities. There were no material changes outside the ordinary course of business during the three months ended June 30, 2025, to the Company’s operating lease terms disclosed in the 2025 Annual Report.

Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases was as follows:

									Three Months Ended June 30,
															2025						2024
Non-cash operating activities (1)
Operating lease assets obtained in exchange for lease liabilities															$	45,271					$	12,336
Reductions to operating lease assets for reductions to lease liabilities															(2,652)						(1,106)

(1) Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements, as well as reductions for tenant improvement allowances.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

As of June 30, 2025, operating lease liabilities recorded in the condensed consolidated balance sheets exclude an aggregate of $37,975 of undiscounted minimum lease payments due pursuant to leases signed during the three months ended June 30, 2025 but not yet commenced, which primarily relate to leases for new retail stores , that the Company expects will be operational during the quarter ending September 30, 2025.

Purchase Obligations. There were no material changes outside the ordinary course of business during the three months ended June 30, 2025, to the Company’s purchase obligations disclosed in the 2025 Annual Report.

Litigation. From time to time, the Company is involved in various legal proceedings, disputes, and other claims arising in the ordinary course of business, including employment, intellectual property, and product liability claims. Although the results of these matters cannot be predicted with certainty, the Company believes it is not currently a party to any legal proceedings, disputes, or other claims for which a material loss is considered probable and for which the amount (or range) of loss is reasonably estimable.

Refer to Note 7, “Commitments and Contingencies,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information on the Company’s contractual obligations and commitments.

NOTE 6. DERIVATIVE INSTRUMENTS

The Company enters into foreign currency forward or option contracts (derivative contracts) with maturities of 15 months or less to manage foreign currency risk and certain of these derivative contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts). The Company enters into derivative contracts that are not designated as cash flow hedges, to offset a portion of anticipated gains and losses on certain intercompany balances until the expected time of repayment (Non-Designated Derivative Contracts). Refer to Note 1, “General,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information related to accounting policies on the Company’s derivative contracts.

The Company has the following derivative contracts recorded at fair value in the condensed consolidated balance sheets:

			June 30, 2025
			Designated Derivative Contracts						Non-Designated Derivative Contracts						Total
Notional value			$	374,348					$	42,207					$	416,555
Fair value recorded in other accrued expenses			(24,676)						(354)						(25,030)

			March 31, 2025
			Designated Derivative Contracts						Non-Designated Derivative Contracts						Total
Notional value			$	367,695					$	14,018					$	381,713
Fair value recorded in other current assets			2,163						75						2,238
Fair value recorded in other accrued expenses			(64)						—						(64)

As of June 30, 2025, five counterparties hold the Company’s outstanding derivative contracts, all of which are expected to mature in the next nine months. As of March 31, 2025, five counterparties held the Company’s outstanding derivative contracts.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

The following table summarizes the effect of Designated Derivative Contracts and the related income tax effects of unrealized gains or losses recorded in the condensed consolidated statements of comprehensive income for changes in accumulated other comprehensive loss (AOCL):

									Three Months Ended June 30,
															2025						2024
(Loss) gain recorded in OCI															$	(25,210)					$	1,132
Reclassifications from AOCL into net sales															535						—
Income tax benefit (expense) in OCI															6,050						(276)
Total															$	(18,625)					$	856

The non-performance risk of the Company and its counterparties did not have a material impact on the fair value of its derivative contracts. As of June 30, 2025, the amount of unrealized loss on derivative contracts recorded in AOCL is expected to be reclassified into net sales within the next nine months. Refer to Note 7, “Stockholders’ Equity,” for further information on the components of AOCL.

NOTE 7. STOCKHOLDERS’ EQUITY

Stock Repurchase Program. The Company’s Board of Directors (Board) has approved various authorizations under the Company’s stock repurchase program to repurchase shares of its common stock in the open market or in privately negotiated transactions, subject to market conditions, applicable legal requirements, and other factors (collectively, the stock repurchase program). The Board last approved an authorization of $2,250,000 on May 21, 2025 to repurchase shares of its common stock under the same conditions as the prior stock repurchase program. As of June 30, 2025, the aggregate remaining approved amount under the stock repurchase program is $2,441,711. The stock repurchase program does not obligate the Company to acquire any amount of common stock and may be suspended at any time at the Company’s discretion.

Stock repurchase activity under the stock repurchase program was as follows:

			Three Months Ended June 30,
			2025						2024
Total number of shares repurchased (1)			1,665,902						1,061,736
Weighted average price per share			$	109.84					$	143.13
Dollar value of shares repurchased (2) (3)			$	182,991					$	151,967

(1) All share repurchases were made pursuant to the stock repurchase program in open-market transactions.

(2) May not calculate on rounded amounts.

(3) The dollar value of shares repurchased excludes the cost of broker commissions, excise taxes, and other costs.

Subsequent to June 30, 2025, through July 10, 2025, the Company repurchased 198,863 shares at a weighted average price of $105.60 per share for $21,000 and had $2,420,711 remaining authorized under the stock repurchase program.

Accumulated Other Comprehensive Loss. The components within AOCL, net of tax, recorded in the condensed consolidated balance sheets, are as follows:

			June 30, 2025						March 31, 2025
Unrealized (loss) gain on cash flow hedges			$	(18,625)					$	1,584
Cumulative foreign currency translation loss			(39,464)						(51,238)
Total			$	(58,089)					$	(49,654)

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

NOTE 8. BASIC AND DILUTED SHARES

The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:

			Three Months Ended June 30,
			2025						2024
Basic			149,344,000						152,867,000
Dilutive effect of equity awards			291,000						616,000
Diluted			149,635,000						153,483,000
Excluded
Time-Based Restricted Stock Units			60,000						3,000
Long-Term Incentive Plan Performance-Based Restricted Stock Units			155,000						290,000
Deferred Non-Employee Director Equity Awards			5,000						1,000
Employee Stock Purchase Plan			4,000						1,000

Excluded Awards. The equity awards excluded from the calculation of the dilutive effect may be excluded due to one of the following: (1) the shares were antidilutive or (2) the necessary conditions had not been satisfied for the shares to be deemed issuable based on the Company’s performance for the relevant performance period. The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and may be materially lower than the number of shares presented, which could result in a lower dilutive effect. Refer to Note 8, “Stock-Based Compensation,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report for further information on the Company’s equity incentive plans.

NOTE 9. REPORTABLE OPERATING SEGMENTS

Information reported to the Chief Operating Decision Maker (CODM), who is the Principal Executive Officer (PEO), is organized into the Company’s three reportable operating segments, which include the brand operations for the HOKA brand, UGG brand, and Other brands. The Company does not regularly provide total assets or capital expenditures information by reportable operating segments to the CODM because that information is not used to evaluate performance or allocate resources to each reportable operating segment.

Segment Net Sales, Gross Margin, and Income from Operations. The CODM regularly evaluates the performance of each reportable operating segment based on net sales, gross profit as a percentage of net sales (gross margin), and income from operations when making decisions about resource allocations to each reportable operating segment. Income from operations of each reportable operating segment includes certain costs, which are specifically related to each reportable operating segment and that are regularly provided to the CODM. These costs consist of cost of sales; payroll and related expenses, including stock-based compensation; advertising, marketing, and promotion expenses; rent and occupancy; depreciation and other related costs; and other segment items. There are no inter-segment sales for any period presented. The accounting policies of the Company’s reportable operating segments are consistent with those described in Note 1, “General,” in the Company’s consolidated financial statements in Part IV of the 2025 Annual Report.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

Income from operations of each reportable operating segment excludes enterprise and shared brand expenses as well as total other income, net, which are not used to assess reportable operating segment performance. Unallocated enterprise and shared brand expenses are costs that are managed centrally and not specific to any one brand. These costs are primarily comprised of certain payroll and related expenses, including stock-based compensation; global IT expenses; 3PL service fees; depreciation, rent, and occupancy for owned warehouses and offices; and other SG&A expenses, such as costs for contract services, materials, supplies, and travel. These costs span multiple functions including owned warehouses and 3PL service fees, along with enterprise costs, which include centralized commercial operations, IT, finance, human resources, legal, supply chain, and corporate executives.

Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:

Three Months Ended June 30, 2025			HOKA						UGG						Other Brands						Total
Net sales			$	653,119					$	265,092					$	46,327					$	964,538
Less: Cost of sales (1)			276,172						125,768						24,692						426,632
Segment gross profit			376,947						139,324						21,635						537,906
Segment gross margin			57.7		%				52.6		%				46.7		%				55.8		%
Less: (1)
Payroll and related costs			28,508						32,865						4,532						65,905
Advertising, marketing, and promotion expenses			55,988						19,568						6,208						81,764
Rent and occupancy			9,046						17,217						38						26,301
Depreciation and other related costs (2)			1,473						2,957						39						4,469
Other segment items (3)			28,404						12,734						3,065						44,203
Segment SG&A expenses			123,419						85,341						13,882						222,642
Segment income from operations			$	253,528					$	53,983					$	7,753					$	315,264
Segment operating margin (4)			38.8		%				20.4		%				16.7		%				32.7		%

Three Months Ended June 30, 2024			HOKA						UGG						Other Brands						Total
Net sales			$	545,178					$	222,951					$	57,218					$	825,347
Less: Cost of sales (1)			221,513						103,692						30,142						355,347
Segment gross profit			323,665						119,259						27,076						470,000
Segment gross margin			59.4		%				53.5		%				47.3		%				56.9		%
Less: (1)
Payroll and related costs			20,729						28,420						4,194						53,343
Advertising, marketing, and promotion expenses			45,303						15,860						7,323						68,486
Rent and occupancy			5,767						15,186						189						21,142
Depreciation and other related costs (2)			1,055						2,404						308						3,767
Other segment items (3)			19,893						11,503						2,376						33,772
Segment SG&A expenses			92,747						73,373						14,390						180,510
Segment income from operations			$	230,918					$	45,886					$	12,686					$	289,490
Segment operating margin (4)			42.4		%				20.6		%				22.2		%				35.1		%

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the Three Months Ended June 30, 2025, and 2024

(amounts in thousands, except per share and share data)

(2) Depreciation and other related costs generally includes depreciation of property and equipment, amortization and impairment of intangible assets or other long-lived assets, accretion, and loss on disposal of assets.

(3) Other segment items are comprised of other SG&A expenses, which primarily include IT expenses, certain 3PL service fees, contract service fees, travel, materials and supplies, credit card fees, and commissions.

(4) Operating margin is defined as income from operations divided by net sales.

A reconciliation of reportable segment income from operations to condensed consolidated statements of comprehensive income was as follows:

			Three Months Ended June 30,
			2025						2024
Segment income from operations			$	315,264					$	289,490
Unallocated enterprise and shared brand expenses (1)			(149,977)						(156,683)
Total other income, net			17,779						16,346
Consolidated income before income taxes			$	183,066					$	149,153

(1) The change in reportable operating segments had an impact on segment income from operations, a measure of segment profitability, and a clarification was made that certain prior unallocated overhead costs are defined as unallocated enterprise and shared brand expenses and are excluded from the measure of segment profitability.