DECK · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

DECKERS OUTDOOR CORP · 2026-10-29 · Importance 20 · Surprise 32

Six-month income tax expense increased 9.6% to $129,394, while the effective tax rate edged up to 22.6% from 22.5%. The rate change reflected non-recurring discrete tax benefits for prior-period adjustments to taxes payable, offset by non-recurring discrete tax expenses related to changes in unrecognized tax benefits. For the quarter, tax expense increased 21.7% to $90,316 and the effective rate rose to 22.4% from 21.7%, primarily because prior-period discrete tax benefits did not recur and excess stock-compensation tax benefits declined.

Key facts

• For the three months ended September 30, 2026, Deckers' effective income tax rate was 22.4%, compared with 21.7% in the prior period; the increase primarily reflected non-recurring discrete tax benefits in the prior period and reduced excess tax benefits for stock-based compensation. source
• For the six months ended September 30, 2026, Deckers' effective income tax rate was 22.6%, compared with 22.5% in the prior period; the increase primarily reflected non-recurring prior-period discrete tax benefits, offset by discrete tax expenses related to changes in unrecognized tax benefits. source