Deckers Outdoor (DECK) Risk Factor Changes

The footwear, apparel, and accessories industry is subject to rapid changes in consumer preferences and fashion

The footwear, apparel, and accessories industry is subject to rapid changes in consumer preferences and fashion tastes, which make it difficult to anticipate demand for our products and forecast our financial results.

Anti-takeover provisions contained in our Amended and Restated Certificate of Incorporation (Certificate)

•general market, geopolitical, and macroeconomic conditions, including evolving international trade

•broad market fluctuations in trading volume and market price of publicly traded securities;

•the declaration of stock or cash dividends, stock repurchases, or stock or reverse stock splits;

•legal proceedings, regulatory actions, and legislative changes impacting us, our competitors, or the

•the financial stability of our customers, manufacturers, suppliers, and competitors;

•quarterly fluctuations in our sales, margins, expenses, financial condition, and results of operations;

•market research and opinions published by securities analysts and other market participants, and

•changes in our stockholder base or public actions taken by investors, including activism;

•changes in estimates and opinions of our performance by securities analysts and other market

The trading price of our common stock has been and may continue to be volatile.

Failure to adequately protect our intellectual property rights could reduce sales and adversely affect the

If we are found to have violated laws concerning the privacy and security of consumers’ or other

•employees are unable to perform their duties or communicate effectively with third parties;

•critical systems become inoperable or require significant time or cost to restore;

We conduct business outside the US, which exposes us to foreign currency exchange rate risk, and could

•general economic fluctuations in international markets; and

•difficulties associated with promoting and marketing products in unfamiliar markets and cultures;

•legal costs related to defending allegations of non-compliance with international laws;

•burdens of complying with a variety of international laws and regulations, which may change

•limitations on our ability to move currency out of international markets or repatriate earnings;

Europe, Asia, Canada, and Latin America affect the prices at which products are sold to

Our ability to capitalize on growth in new international markets and to maintain the current level of operations in our

Our sales in international markets are subject to a variety of legal, regulatory, political, cultural, and

•adverse consumer perceptions of goods sourced from certain countries, including as a result of

In addition to trade-related risks, our international operations and independent manufacturers are subject to

Risks Related to Our Global Business Strategy and Operations, and

The process of completing any acquisitions or divestitures may be time-consuming, involve significant costs and

•incur costs relating to potential acquisitions that we fail to consummate, which we may not recover.

•encounter difficulties marketing to new consumers or managing geographically dispersed

•encounter difficulties integrating and managing acquired assets;

•expose us to risks inherent in entering into new markets or geographic regions;

integrate any acquired business could have a material adverse effect on our results of operations and

Climate change, natural disasters, public health issues, or other events beyond our control, as well as

Increasing expectations from investors, regulators, and other key stakeholders with respect to our ESG

We may not succeed in implementing our growth strategies, in which case we may not be able to take

We rely on technical innovation to compete in the market for our products, and if we fail to innovate

We depend on qualified talent and, if we are unable to retain or hire executive officers, key employees, and

We rely upon a number of warehouse and distribution facilities to operate our business, and any damage to

•changes in consumer preferences, discretionary spending patterns, prevailing fashion trends, and

have a material adverse effect on our financial condition and results of operations.

Our Certificate and Bylaws contain provisions that could have the effect of rendering more difficult hostile takeovers, change-in-control transactions, or changes in our Board or management.

In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of individual companies.

•a variety of risk factors, including the ones described herein and in our other SEC filings.

Additionally, we are subject to tax audits, which may result in the assessment of additional taxes.

Many countries in which we operate have adopted tax laws that could impact our financial position and results of operations beyond fiscal year 2025, including the 15% global minimum tax under the Organization for Econ…

Changes in US and foreign tax laws, regulations, and treaties could materially affect our business.

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…

From time to time, we have financed our liquidity needs in part from borrowings made under our revolving credit facilities.

Our business could be significantly harmed if we are not able to protect our intellectual property rights.

We continually strive to improve and automate our operational and IT systems and processes as part of our ongoing effort to improve the overall efficiency and competitiveness of our business.

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 res…

effect on the growth of our e-commerce websites and have an adverse effect on our business and results of operations.

Many of our consumers shop with us through our Company-owned e-commerce websites or through third-party digital marketplaces.

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 glo…

There are a number of laws protecting the privacy and security of personal information and increased scrutiny by regulators, such as the Federal Trade Commission, and state attorneys general focused on our industry.

If any of these events were to occur, it could have a material adverse effect on our financial condition and results of operations and result in harm to our reputation.

•we become subject to other unanticipated liabilities, costs, or claims.

•customers cannot place or receive orders, and we are unable to timely ship orders or at all; or

•we are required to make unanticipated investments in equipment, technology, or security measures;

•we are prevented from accessing information necessary to conduct our business;

•it results in the loss, theft, misuse, or unauthorized disclosure of confidential information;

Although we take the security of our IT systems seriously, there can be no assurance the measures we employ will prevent unauthorized access to our systems and information.

expend significant resources on IT and data security tools, and processes designed to protect our IT systems and information, and to ensure an effective response to any attack or incident.

The frequency, intensity, and sophistication of cyber and data security incidents have significantly increased in recent years.

Our success also depends in part on the continued operation of our key business processes, including our IT and global communications systems.

We store and transmit a significant amount of sensitive information, including the personal information of our customers and employees, credit card information, and our proprietary financial, operational, and strategi…

A security breach or disruption to our IT systems could materially harm our business, disrupt our operations, or result in unauthorized disclosure of sensitive information, which could damage our relationships, expose…

We operate on a global basis, with 36.1% of our total net sales for the year ended March 31, 2025, generated from operations outside the US.

•changes in unemployment rates and consumer spending;

•political or economic uncertainty or instability, which has disrupted the global economy and has the potential to reduce levels of consumer spending, which could have a material adverse effect on our business, partic…

•supply chain logistics disruptions, such as shipping disruptions in the Red Sea;

In addition, while we have historically used more expensive air freight to ship our products to meet demand, we continued to reduce our use of air freight into fiscal year 2025.

Elevated inventory levels, combined with the uneven flow of receipts and shipments, could cause further capacity pressures within our US warehouses and DCs and international 3PLs.

Port congestion, temporary closures, vessel availability and reliability, worker shortages, government-imposed restrictions, such as border closures and shipment restrictions, as well as trade policy changes, may disr…

Our business depends on our ability to source and distribute products in a timely manner.

Supply chain disruptions could interrupt product manufacturing and global logistics and increase product and transportation costs.

business, operations, and financial condition.

While we pursue mitigation strategies, including selective, staggered, and strategic price increases on our products in the US and by negotiating cost-sharing arrangements with our independent manufacturers, we may be…

Transportation and distribution costs may also be adversely affected by fluctuating demand, fuel cost volatility, labor disputes, inflation, and political, social, and economic instability.

•health-related disruptions, such as disease outbreaks or raw material shortages, which could impact our workforce or scarcity of raw and other materials; and

•use of unauthorized or prohibited materials or reclassification of materials;

•social instability and corruption, extortion, bribery, pay-offs, theft, and other fraudulent activity;

•decreased scrutiny by custom officials for counterfeit products;

•customary business traditions in certain countries such as local holidays, which are traditionally accompanied by elevated levels of turnover in the factories;

•restrictions on the transfer of funds from foreign jurisdictions or volatile foreign exchange rates;

•poor infrastructure and equipment shortages, which can disrupt transportation and utilities;

In addition to trade-related risks, our international operations and independent manufacturers are subject to a range of regulatory, operational, and reputational risks.

The production of finished goods is outsourced to independent manufacturers, which are primarily located in Southeast Asia, predominately in Vietnam.

Our reliance on independent manufacturers and suppliers located primarily in Southeast Asia subjects us to risks associated with complex and evolving international trade policies, regulatory environments, and geopolit…

As part of our overall strategy to allocate resources that best align with our long-term objectives, we may seek to sell one or more brands.

Further, we may be required to issue equity securities to finance an acquisition, which would be dilutive to our stockholders, and equity securities may have rights or preferences senior to those of our existing stock…

Additionally, we may not be able to successfully integrate the assets or operations of any acquired businesses into our operations, or to achieve the expected benefits of any acquisitions.

As part of our overall strategy, we may periodically consider strategic acquisitions to expand our brands into complementary product categories and markets, or to acquire new brands, technologies, intellectual propert…

These events could also adversely affect the supply of raw materials, including sheepskin and leather, disrupt the operation of our supply chain and the productivity of our contract manufacturers, increase our product…

production, transportation, raw and other materials, as well as higher insurance premiums and deductibles, which could adversely affect our operations.

Natural disasters or other catastrophic events, including the effects of climate change or a pandemic, may damage or disrupt our operations, international markets, and the global economy.

Increasing focus on ESG matters has resulted in, and is expected to continue to result in, the adoption of legal and regulatory requirements designed to mitigate the effects of climate change on the environment and re…