Deckers Brands

Sustained high gross margins and full‑price sell‑through indicate meaningful pricing power, especially on core UGG franchises and HOKA’s hero models.

FY25 gross margin was 57.9 percent, aided by favorable mix and disciplined markdowns; Q1 FY26 gross margin of 55.8 percent reflected channel mix (wholesale outpaced DTC) and higher promotions, a reminder that pricing is not unconstrained. Tariff pass‑through in 2025 could require selective price increases and cost actions to defend unit economics.

Overall we see solid pricing power, with some near‑term pressure from trade frictions.