DECK · 10-Q · 2026Q3 · Full report

Operating Expense Trends

DECKERS OUTDOOR CORP · 2026-10-29 · Importance 30 · Surprise 14

Six-month SG&A increased 8.9% to $925,518, or 37.0% of sales versus 35.5% a year earlier. Advertising, marketing, and promotion rose approximately $29,800, primarily for HOKA and UGG; payroll and related costs rose $19,800, driven mainly by higher HOKA-led headcount and international retail investments. Rent and occupancy increased approximately $11,600, particularly from HOKA expansion in Asia, while other SG&A rose approximately $11,200, primarily due to higher IT expenses. In the quarter, SG&A rose 5.9% to $505,656, including approximately $19,500 of additional advertising and $7,300 of higher payroll costs.

Key facts

• For the three months ended September 30, 2026, advertising, marketing, and promotion expenses increased approximately $19,500, primarily for HOKA and UGG global awareness, market share gains, new product categories, and localized marketing. source
• For the six months ended September 30, 2026, advertising, marketing, and promotion expenses increased approximately $29,800, primarily for HOKA and UGG global awareness, market share gains, new product categories, and localized marketing. source
• For the six months ended September 30, 2026, payroll and related costs increased approximately $19,800, primarily due to higher headcount and HOKA-led talent investments, including international retail stores. source
• For the three months ended September 30, 2026, payroll and related costs increased approximately $7,300, primarily due to higher headcount and HOKA-led talent investments, including international retail stores. source
• For the six months ended September 30, 2026, rent and occupancy increased approximately $11,600, primarily due to HOKA and UGG global retail footprint investments, particularly HOKA expansion in Asia. source
• For the six months ended September 30, 2026, other SG&A expenses increased approximately $11,200, primarily due to higher IT expenses, partially offset by other miscellaneous expenses, including bad debt expenses. source
• Deckers' investing cash outflow decreased in the six months ended September 30, 2026, primarily because of lower property and equipment purchases following office facility upgrades completed in the prior fiscal year, partly offset by global retail footprint investments. source