Deckers Outdoor Corporation stock research
FY2026 Q1
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Jun 30, 2025
In the current quarter, revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Gross margin decreased relative to both comparison periods, indicating that cost of revenue grew faster than revenue on a year-over-year basis and declined sequentially.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2026 Q1
In the current quarter, revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Gross margin decreased relative to both comparison periods, indicating that cost of revenue grew faster than revenue on a year-over-year basis and declined sequentially.
- The strongest observable margin driver is the change in the relationship between revenue and cost of revenue. The gross margin weakened from both the immediate prior quarter and the year-ago quarter.
- Compared to the preceding quarter, revenue and gross profit decreased, while gross margin also decreased. Compared to the same quarter one year earlier, revenue and gross profit increased, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.8%
Gross profit
$537.9M
Revenue
$964.5M
Cost of revenue
$426.6M
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $1.3B | $733.3M | $578.0M | 55.9% |
| Dec 31, 2024 | $1.8B | $1.1B | $724.5M | 60.3% |
| Mar 31, 2025 | $1.0B | $579.8M | $442.0M | 56.7% |
| Jun 30, 2025 | $964.5M | $537.9M | $426.6M | 55.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-1.0 pts
Year-over-year change
Jun 30, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in the relationship between revenue and cost of revenue. The gross margin weakened from both the immediate prior quarter and the year-ago quarter.
Compared to the preceding quarter, revenue and gross profit decreased, while gross margin also decreased. Compared to the same quarter one year earlier, revenue and gross profit increased, but gross margin was lower.
Monitor the trend of cost of revenue relative to revenue, as the gross margin has declined in both sequential and year-over-year comparisons.