Deckers Outdoor (DECK) FY2026 10-K Risk Factors: 10 New, 6 Dropped

What the changes say

Supply-chain risks are more specific, including concentrated sheepskin processing, independent manufacturers, inventory forecasting, and logistics constraints.
New disclosures expand exposure to privacy enforcement, global tax changes, revolving-credit covenants, and tax audits.
Digital platforms, AI-enabled competition, ESG disclosures, and customer compliance receive more detailed treatment.
Premium UGG and HOKA demand is tied more explicitly to inflation, tariffs, interest rates, and consumers trading down.

What changed since the prior 10-K

New

New
Our short and long -term success is subject to numerous risks and uncertainties, many of which involve factors that are difficult to predict or beyond our control. As a result, investing in our common stock involves substantial risk
NewRisks Related to Our Business and Industry
The footwear, apparel, and accessories industry is subject to rapid changes in consumer preferences, and if we do not accurately anticipate and promptly respond to consumer demand and spending patterns, we could lose sales, our relationships with customers could be harmed, and our brand loyalty could be diminished
Rapidly changing preferences, pricing sensitivity, or weaker brand loyalty could reduce demand for UGG, HOKA, and other products.
NewRisks Related to Our Business and Industry
I f we are unsuccessful at managing inventory planning, forecasting, and global supply chain execution, we may be unable to accurately forecast our inventory and working capital requirements, which may have a material adverse effect on our financial condition and results of operations
Poor inventory forecasts, supplier performance, manufacturing capacity, raw-material availability, or logistics could create working-capital pressure and excess inventory.
NewRisks Related to Our Business and Industry
Table of Contents 16 There can be no assurance of a long-term, uninterrupted supply of products from our independent manufacturers
Key independent manufacturers could terminate relationships, raise prices, face capacity constraints, or suffer disruptions while proprietary shoe molds remain in their custody.
NewRisks Related to Our Business and Industry
S heepskin and other raw materials are used to manufacture a significant portion of our products, and disruptions in the availability, pricing, or quality standards of these inputs could have a material adverse effect on our business
Sheepskin processed mainly in Australia and by two Chinese tanneries, plus sugarcane-derived EVA, creates concentrated supply, quality, sustainability, and pricing risks.
NewRisks Related to Our Business and Industry
Our success relies in part on our continued innovation in both the materials we use and the design of our footwear
Late, unsuccessful, lower-quality, or less competitive innovations in HOKA designs and preferred materials could reduce demand and market share.
NewRisks Related to Technology, Data Security and Privacy
There are a number of laws protecting the privacy and security of personal information, as well as increased scrutiny by regulators, such as the Federal Trade Commission, and state attorneys general focused on our industry
Privacy laws and enforcement covering California, the EU, Canada, and China could create penalties, private lawsuits, and reputational damage after violations by Deckers or service providers.
NewRisks Related to Our Legal, Compliance, and Regulatory Environment
From time to time, we have financed our liquidity needs in part through borrowings under revolving credit facilities
Credit facilities may not be renewed, and covenant breaches or cross-defaults could accelerate repayment and restrict liquidity.
NewRisks Related to Our Legal, Compliance, and Regulatory Environment
Changes in global tax laws, regulations, and treaties could materially affect our business. These tax laws require significant judgment and specialized expertise to evaluate and estimate our worldwide provision for income taxes
OECD Pillar Two rules, U.S. legislation, and other global tax changes could raise worldwide tax expense and the effective tax rate.
NewRisks Related to Our Legal, Compliance, and Regulatory Environment
Refer to Note 5, “Income Taxes,” of our consolidated financial statements in Part IV within this Annual Report for further information regarding tax law changes
Tax audits, litigation, and changes in uncertain-tax-position estimates could increase taxes or cash outflows and require restating prior financial reports.

Dropped

DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
If we are unsuccessful at managing product manufacturing decisions to offset the inherent seasonality of our business, we may be unable to accurately forecast our inventory and working capital requirements, which may have a material adverse effect on our financial condition and results of operations
DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
We use sheepskin to manufacture a significant portion of our products, and if we are unable to obtain sufficient sheepskin at acceptable prices that meets our quality expectations, or if there are legal or social impediments to our ability to use sheepskin, it could have a material adverse effect on our business
DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
We rely on technical innovation to compete in the market for our products
Managing manufacturing decisions to offset seasonal inventory and working-capital requirements.
DroppedRISKS RELATED TO OUR GLOBAL BUSINESS STRATEGY AND OPERATIONS, AND INTERNATIONAL COMMERCE
Supply chain disruptions could interrupt product manufacturing and global logistics and increase product and transportation costs
DroppedRISKS RELATED TO OUR LEGAL, COMPLIANCE, AND REGULATORY ENVIRONMENT
Our revolving credit facility agreements expose us to certain risks
DroppedRISKS RELATED TO OUR LEGAL, COMPLIANCE, AND REGULATORY ENVIRONMENT
The tax laws applicable to our business are complex, and changes in tax laws or audits by taxing authorities could increase our worldwide tax rate and may subject us to additional tax liabilities, which may materially affect our financial position and results of operations

Reworded

100% rewrittenRisks Related to Technology, Data Security and Privacy
If we are found to have violated laws concerning the privacy and security of consumers’ or other individuals’ personal information, we could be subject to civil or criminal penalties, which could increase our liabilities and harm our reputation or our business
The this-year text is not provided, so the change from the prior privacy-risk wording cannot be determined.
99% rewrittenRisks Related to Technology, Data Security and Privacy
If the technology-based systems that give our customers the ability to shop or interact with us online do not function effectively, our results of operations, as well as our ability to grow our e-commerce websites globally or to retain our customer base, could be materially and adversely affected
The risk now emphasizes third-party platform algorithm, policy, fee, data-access, and AI changes that could reduce traffic or raise customer-acquisition costs.
Was: If the technology-based systems that give our customers the ability to shop or interact with us online do not function effectively, our results of operations, as well as our ability to grow our e-commerce websites globally or to retain our customer base, could be materially adversely affected
99% rewrittenRisks Related to Our Business and Industry
Table of Contents 19 Increasing expectations from investors, regulators, and other key stakeholders with respect to our ESG practices may impose additional costs on us or expose us to additional risks
ESG scrutiny now expressly includes regulatory inquiries, litigation, greenwashing allegations, and disclosures covering human rights, supply chains, and diversity.
Was: Increasing expectations from investors, regulators, and other key stakeholders with respect to our ESG practices may impose additional costs on us or expose us to new or additional risks
98% rewrittenRisks Related to Our Business and Industry
C limate change, natural disasters, public health issues, or other events beyond our control, as well as related regulations, have adversely affected, and could in the future adversely affect, our business
The wording focuses more specifically on employee availability, facility damage, supply-chain interruption, and IT-system compromise during disasters or other events.
Was: Climate change, natural disasters, public health issues, or other events beyond our control, as well as related regulations, have adversely affected, and could in the future adversely affect, our business
96% rewrittenRisks Related to Our Business and Industry
We face intense competition from both established companies and newer entrants into the market, and our failure to compete effectively could cause our market share to decline, which could harm our reputation and have a material adverse effect on our financial condition and results of operations
Competition now explicitly includes pricing, speed-to-market, data analytics and AI, manufacturing access, distribution control, and larger competitors’ broader assortments.
95% rewrittenRisks Related to Our Business and Industry
Our financial success is influenced by the success of our customers, and the loss of a key customer could have a material adverse effect on our results of operations
The risk now covers wholesale-channel disputes, litigation or arbitration, customer financial problems, and failures to follow laws, labor standards, or Deckers policies.
Was: Our financial success is influenced by the success of our customers, and the loss of a key customer could have a material adverse effect on our financial condition and results of operations
94% rewrittenRisks Related to Our Business and Industry
Changes to economic conditions may adversely affect our financial condition and results of operations
Economic sensitivity now adds wages and employment, public health issues, trading down, delayed purchases, and possible price reductions or higher promotions.
87% rewrittenRisks Related to Our Business and Industry
We rely upon independent manufacturers for all of our production needs, and the failure of these manufacturers to manage these responsibilities would prevent us from filling customer orders, which would result in loss of sales and harm our relationships with customers
Manufacturing concentration now includes Indonesia alongside Vietnam and explicitly identifies regional economic, political, environmental, and operational risks.
Was: We rely upon independent manufacturers for most of our production needs, and the failure of these manufacturers to manage these responsibilities would prevent us from filling customer orders, which would result in loss of sales and harm our relationships with customers
71% rewrittenRisks Related to Our Business and Industry
We depend on qualified talent and, if we are unable to retain or hire executive officers, key employees, and skilled talent, we may not be able to achieve our strategic objectives, which could adversely affect our results of operations
Was: We depend on qualified talent and, if we are unable to retain or hire executive officers, key employees, and skilled talent, we may not be able to achieve our strategic objectives, and our results of operations may be adversely impacted
69% rewrittenRisks Related to Our Business and Industry
We rely upon a number of warehouse and distribution facilities to operate our business, and any damage to one of these facilities, or any disruptions caused by incorporating new facilities into our operations, could have a material adverse effect on our business
61% rewrittenRisks Related to Our Global Business Strategy and Operations, and
Our sales in international markets are subject to a variety of legal, regulatory, political, cultural, and economic risks that may adversely affect our results of operations
Was: Our sales in international markets are subject to a variety of legal, regulatory, political, cultural, and economic risks that may adversely affect our results of operations in certain regions
59% rewrittenRisks Related to Our Common Stock
Our common stock price has been volatile, which could result in losses for stockholders
Was: Our common stock price has been volatile, which could result in substantial losses for stockholders
53% rewrittenRisks Related to Our Global Business Strategy and Operations, and
We conduct business outside the US , which exposes us to foreign currency exchange rate risk, and could have a negative effect on our results of operations
Was: We conduct business outside the US, which exposes us to foreign currency exchange rate risk, and could have a negative effect on our financial results
52% rewrittenRisks Related to Technology, Data Security and Privacy
If we are unsuccessful at improving our operational and IT systems and our efforts do not result in the anticipated benefits to us or result in unanticipated disruption to our business, our results of operations could be adversely affected
Was: If we are unsuccessful at improving our operational and IT systems and our efforts do not result in the anticipated benefits to us or result in unanticipated disruption to our business, our financial condition and results of operations could be adversely affected, and our business may become less competitive
50% rewrittenRisks Related to Our Legal, Compliance, and Regulatory Environment
Failure to adequately protect our intellectual property rights could reduce sales and adversely affect the value of our brands
45% rewrittenRisks Related to Our Business and Industry
We face risks associated with strategic acquisitions and divestitures, and our failure to successfully integrate any acquired business could have a material adverse effect on our results of operations and financial condition
45% rewrittenRisks Related to Our Business and Industry
We may not succeed in implementing our growth strategies, in which case we may not be able to take advantage of certain market opportunities and our competitive position and results of operations could be adversely affected
Was: We may not succeed in implementing our growth strategies, in which case we may not be able to take advantage of certain market opportunities and may become less competitive

All 28 risk factors

Headings as the filing states them, in filing order.

Other

01Our short and long -term success is subject to numerous risks and uncertainties, many of which involve factors that are difficult to predict or beyond our control. As a result, investing in our common stock involves substantial riskNew

Risks Related to Our Business and Industry

02The footwear, apparel, and accessories industry is subject to rapid changes in consumer preferences, and if we do not accurately anticipate and promptly respond to consumer demand and spending patterns, we could lose sales, our relationships with customers could be harmed, and our brand loyalty could be diminishedNew
03Changes to economic conditions may adversely affect our financial condition and results of operations94% rewritten
04We face intense competition from both established companies and newer entrants into the market, and our failure to compete effectively could cause our market share to decline, which could harm our reputation and have a material adverse effect on our financial condition and results of operations96% rewritten
05I f we are unsuccessful at managing inventory planning, forecasting, and global supply chain execution, we may be unable to accurately forecast our inventory and working capital requirements, which may have a material adverse effect on our financial condition and results of operationsNew
06We rely upon a number of warehouse and distribution facilities to operate our business, and any damage to one of these facilities, or any disruptions caused by incorporating new facilities into our operations, could have a material adverse effect on our business69% rewritten
07We rely upon independent manufacturers for all of our production needs, and the failure of these manufacturers to manage these responsibilities would prevent us from filling customer orders, which would result in loss of sales and harm our relationships with customers87% rewritten
08Table of Contents 16 There can be no assurance of a long-term, uninterrupted supply of products from our independent manufacturers New
09Our financial success is influenced by the success of our customers, and the loss of a key customer could have a material adverse effect on our results of operations95% rewritten
10We depend on qualified talent and, if we are unable to retain or hire executive officers, key employees, and skilled talent, we may not be able to achieve our strategic objectives, which could adversely affect our results of operations71% rewritten
11S heepskin and other raw materials are used to manufacture a significant portion of our products, and disruptions in the availability, pricing, or quality standards of these inputs could have a material adverse effect on our businessNew
12Our success relies in part on our continued innovation in both the materials we use and the design of our footwearNew
13We may not succeed in implementing our growth strategies, in which case we may not be able to take advantage of certain market opportunities and our competitive position and results of operations could be adversely affected45% rewritten
14Table of Contents 19 Increasing expectations from investors, regulators, and other key stakeholders with respect to our ESG practices may impose additional costs on us or expose us to additional risks99% rewritten
15C limate change, natural disasters, public health issues, or other events beyond our control, as well as related regulations, have adversely affected, and could in the future adversely affect, our business98% rewritten
16We face risks associated with strategic acquisitions and divestitures, and our failure to successfully integrate any acquired business could have a material adverse effect on our results of operations and financial condition45% rewritten

Risks Related to Our Global Business Strategy and Operations, and

17Our sales in international markets are subject to a variety of legal, regulatory, political, cultural, and economic risks that may adversely affect our results of operations61% rewritten
18We conduct business outside the US , which exposes us to foreign currency exchange rate risk, and could have a negative effect on our results of operations53% rewritten

Risks Related to Technology, Data Security and Privacy

19If we are found to have violated laws concerning the privacy and security of consumers’ or other individuals’ personal information, we could be subject to civil or criminal penalties, which could increase our liabilities and harm our reputation or our business100% rewritten
20There are a number of laws protecting the privacy and security of personal information, as well as increased scrutiny by regulators, such as the Federal Trade Commission, and state attorneys general focused on our industryNew
21If the technology-based systems that give our customers the ability to shop or interact with us online do not function effectively, our results of operations, as well as our ability to grow our e-commerce websites globally or to retain our customer base, could be materially and adversely affected99% rewritten
22If we are unsuccessful at improving our operational and IT systems and our efforts do not result in the anticipated benefits to us or result in unanticipated disruption to our business, our results of operations could be adversely affected52% rewritten

Risks Related to Our Legal, Compliance, and Regulatory Environment

23Failure to adequately protect our intellectual property rights could reduce sales and adversely affect the value of our brands50% rewritten
24From time to time, we have financed our liquidity needs in part through borrowings under revolving credit facilitiesNew
25Changes in global tax laws, regulations, and treaties could materially affect our business. These tax laws require significant judgment and specialized expertise to evaluate and estimate our worldwide provision for income taxesNew
26Refer to Note 5, “Income Taxes,” of our consolidated financial statements in Part IV within this Annual Report for further information regarding tax law changesNew

Risks Related to Our Common Stock

27Our common stock price has been volatile, which could result in losses for stockholders59% rewritten
28Anti-takeover provisions contained in our Amended and Restated Certificate of Incorporation (Certificate) and Amended and Restated Bylaws ( Bylaws ), as well as provisions of Delaware law, could impair or delay a takeover attempt

Other Deckers Outdoor 10-Ks

FY2025 10-K risk factors
24 risks
Deckers relies heavily on premium brands like UGG and HOKA, international sourcing primarily in Vietnam, and sheepskin commodities.
Filed May 23, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.