DECKERS OUTDOOR CORP (DECK) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that DECKERS OUTDOOR CORP surfaced in its latest filing.

• The company completed the phase out of standalone operations of the Koolaburra brand and AHNU brand during fiscal year 2026.2026
• The company completed the sale of the Sanuk brand.2025
• As of March 31, 2026, one customer represents 18.5% of trade accounts receivable, net.March 31, 2026
• During fiscal year 2026, 41.7% of total net sales were generated from operations outside the US.2026
• The company is transitioning certain international 3PL operations to a new partner.
• The company proactively took a subset of servers offline in response to a cybersecurity incident.
• The company engaged third-party cybersecurity experts and an incident response firm.
• A genericness claim regarding the 'ugg' trademark was successful in Australia.
• The company faced a genericness claim regarding the 'ugg' trademark, which was rejected by courts in the US, China, the Republic of Türkiye, and the Netherlands.
• Certain tariffs imposed under the International Emergency Economic Powers Act have been invalidated by a recent US Supreme Court decision.
• The company may face uncertainty regarding recovery or refund of tariff amounts previously paid.
• The company operates warehouses in Moreno Valley, California and Mooresville, Indiana.
• The company's headquarters are located in Goleta, California.
• The company sources sheepskin primarily from Australia.
• Sheepskin is processed largely by two tanneries in China.
• The company relies on designated suppliers for sugarcane-derived EVA.
• The company published its annual Creating Change Report.
• The company is subject to ESG-related disclosure requirements of the SEC, European regulators, and California.
• The enactment of H.R. 1 (One Big Beautiful Bill Act) may affect applicable tax rules.
• A default under one revolving credit facility could trigger cross-default under other facilities.
• Customs authorities may challenge the company's tariff classifications.