<SEC-DOCUMENT>0001157523-17-000327.txt : 20170202
<SEC-HEADER>0001157523-17-000327.hdr.sgml : 20170202
<ACCEPTANCE-DATETIME>20170202160548
ACCESSION NUMBER:		0001157523-17-000327
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170202
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170202
DATE AS OF CHANGE:		20170202

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DECKERS OUTDOOR CORP
		CENTRAL INDEX KEY:			0000910521
		STANDARD INDUSTRIAL CLASSIFICATION:	RUBBER & PLASTICS FOOTWEAR [3021]
		IRS NUMBER:				953015862
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36436
		FILM NUMBER:		17568307

	BUSINESS ADDRESS:	
		STREET 1:		250 COROMAR DRIVE
		CITY:			GOLETA
		STATE:			CA
		ZIP:			93117
		BUSINESS PHONE:		8059677611

	MAIL ADDRESS:	
		STREET 1:		250 COROMAR DRIVE
		CITY:			GOLETA
		STATE:			CA
		ZIP:			93117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DECKERS FOOTWEAR CORP
		DATE OF NAME CHANGE:	19930811
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51504428.htm
<DESCRIPTION>DECKERS OUTDOOR CORPORATION 8-K
<TEXT>
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    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 18pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 18pt"><br style="font-size: 18pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 18pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 10pt"><b>Washington,
      D.C. 20549</b></font><br><font style="font-family: Times New Roman"><b>______________</b></font><br>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 18pt"><b>FORM 8-K</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">Date of
      Report (Date of earliest event reported): February 2, 2017</font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-size: 10pt; font-family: Times New Roman"></font><br><br>
    </p>
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    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
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        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; text-align: center; border-bottom-style: solid" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 18pt">DECKERS OUTDOOR CORPORATION</font>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          (Exact name of registrant as specified in its charter)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; text-align: center; border-bottom-style: solid" valign="top">
          Delaware
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          (State or other jurisdiction of incorporation)
        </td>
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    </table>
    </div>
    <p>

    </p>
<div style="text-align:left">
    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
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          000-22446
        </td>
        <td style="width: 50%; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top">
          95-3015862
        </td>
      </tr>
      <tr>
        <td style="width: 50%; padding-left: 0.0px; text-align: center" valign="top">
          (Commission File Number)
        </td>
        <td style="width: 50%; padding-left: 0.0px; text-align: center" valign="top">
          (IRS Employer Identification No.)
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 50%; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; text-align: center; border-bottom-style: solid" valign="top">
          250 Coromar Drive, Goleta, California
        </td>
        <td style="width: 50%; padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top">
          93117
        </td>
      </tr>
      <tr>
        <td style="width: 50%; padding-left: 0.0px; text-align: center" valign="top">
          (Address of principal executive offices)
        </td>
        <td style="width: 50%; padding-left: 0.0px; text-align: center" valign="top">
          (Zip code)
        </td>
      </tr>
    </table>
    </div>
    <p style="margin-left: 120.0px; margin-right: 120.0px; text-align: center">
      Registrant&#8217;s telephone number, including area code (805) 967-7611
    </p>
<div style="text-align:left">
    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
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          &#160;
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      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          (Former name or former address, if changed since last report)
        </td>
      </tr>
    </table>
    </div>
    <p style="margin-left: 120.0px; margin-right: 120.0px; text-align: center">
      <br>

    </p>
    <p>

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions </font>(see General Instruction A.2. below):
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <p>

    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="white-space: nowrap; margin-right: 120.0px">
      <b>Item&#160;2.02.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Results of Operations and Financial Condition.&#160;&#160;</b>
    </p>
    <p>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;On February 2, 2017, Deckers Outdoor Corporation issued a press
      release announcing its financial results for the three months ended
      December 31, 2016 and held a conference call regarding these financial
      results. A copy of the press release is furnished hereto as Exhibit
      99.1.&#160;&#160;&#160;
    </p>
    <p>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;The information in this Form 8-K and the exhibit attached hereto
      shall not be deemed &#8220;filed&#8221; for purposes of Section 18 of the Securities
      Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), nor shall they be
      deemed incorporated by reference in any filing under the Securities Act
      of 1933, as amended, or the Exchange Act, except as shall be expressly
      set forth by specific reference in such filing.
    </p>
    <p style="white-space: nowrap; margin-right: 120.0px">
      <b>Item 9.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
    <p style="margin-left: 90.0px; white-space: nowrap; margin-right: 120.0px">
      (d)&#160;&#160;Exhibits.
    </p>
    <p style="margin-left: 90.0px; white-space: nowrap; margin-right: 120.0px">
      <u>Exhibit No</u>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Description</u><br>&#160;&#160;&#160;&#160;&#160;&#160;&#160;99.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Press
      Release, dated February 2, 2017
    </p>
    <p style="margin-left: 90.0px; white-space: nowrap; margin-right: 120.0px">

    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <br>
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      <br>

    </p>
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    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 5%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td style="width: 55%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            February 2, 2017
          </p>
        </td>
        <td style="width: 40%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Deckers Outdoor Corporation
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 40%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%; padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 40%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%; padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 55%; padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 40%; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; text-align: left; border-bottom-style: solid" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Thomas A. George
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 40%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Thomas A. George
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 40%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <b>EXHIBIT INDEX</b>
    </p>
    <p style="margin-left: 150.0px">
      <br>

    </p>
<div style="text-align:left">
    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 20%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit No.</b>
          </p>
        </td>
        <td style="width: 80%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 20%; padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left" valign="top">
          99.1
        </td>
        <td style="width: 80%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release, dated February 2, 2017
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="margin-left: 150.0px">

    </p>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51504428ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Deckers
      Brands Reports Third Quarter Fiscal 2017 Financial Results</b></font>
    </p>
    <p>
      GOLETA, Calif.--(BUSINESS WIRE)--February 2, 2017--Deckers Brands (NYSE:
      DECK), a global leader in designing, marketing and distributing
      innovative footwear, apparel and accessories, today announced financial
      results for the third fiscal quarter ended December 31, 2016.
    </p>
    <p>
      Throughout this release, references to Non-GAAP financial measures
      exclude certain restructuring and other charges. Additional information
      regarding these Non-GAAP financial measures is set forth under the
      heading &#8220;Non-GAAP Financial Measures&#8221; below.
    </p>
    <p>
      &#8220;While the slow start to the holiday season limited our reorder<b> </b>opportunities
      and led to a shortfall in third quarter sales and earnings, sell-through
      of the UGG&#174; brand accelerated sharply late in the quarter. Our December
      performance helped drive a positive 4.7% Direct-to-Consumer (DTC)
      comparable sales increase and also ensured that our wholesale partners
      ended the calendar year with cleaner inventory levels compared with a
      year ago. While we are disappointed that our overall results fell short
      of projections, we are confident that our product, pricing and
      distribution strategies will benefit the long-term health of the UGG
      brand,&#8221;&#160;said Dave Powers, President and CEO.
    </p>
    <p>
      &#8220;With the accelerated change that we are seeing in the marketplace, we
      plan to further transform our operating structure in order to grow
      profitably and become more nimble. On top of approximately $60 million
      in previously announced SG&amp;A and gross margin improvements, we have
      identified approximately $90 million of additional savings that we plan
      to implement over the course of the next two fiscal years, which we
      anticipate will ultimately more than offset future investments aimed at
      growing the business. These new initiatives will better position the
      Company to succeed in a more competitive and faster paced environment,
      drive improved profitability, and deliver greater shareholder value,&#8221;
      said Powers.
    </p>
    <p>
      Third quarter results include charges of $128.9 million related to the
      write-down of Sanuk&#174; brand goodwill and intangible assets, retail
      impairments and other restructuring related charges. The Sanuk brand
      impairment charge was $118.0 million, retail related charges were $9.0
      million and other restructuring charges totaled $1.9 million. While
      Sanuk continues to be an important brand in the casual canvas and sandal
      categories, our current expectations for future international and
      domestic expansion are more limited than our initial estimates.
    </p>
    <p>
      <b>Third Quarter Fiscal 2017 Financial Review</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <b>Net sales</b> decreased (4.5)% to $760.3 million compared to $795.9
        million for the same period last year. On a constant currency basis,
        net sales decreased (3.7)%.
      </li>
      <li style="margin-bottom: 10.0px">
        <b>Gross margin</b> was 50.5% compared to 49.1% for the same period
        last year.
      </li>
      <li style="margin-bottom: 10.0px">
        <b>SG&amp;A expenses </b>as a percentage of sales were 43.5% compared
        to 23.7% for the same period last year. Non-GAAP SG&amp;A expenses as a
        percentage of sales were 26.5%.
      </li>
      <li style="margin-bottom: 10.0px">
        <b>Operating income</b> was $53.3 million compared to $202.5 million
        for the same period last year. Non-GAAP operating income was $182.2
        million.
      </li>
      <li style="margin-bottom: 10.0px">
        <b>Diluted earnings per share</b> was $1.27 compared to $4.78 for the
        same period last year. Non-GAAP diluted earnings per share was $4.11.
      </li>
      <li style="margin-bottom: 10.0px">
        In the quarter, the company recorded impairment charges related to the
        Sanuk brand, retail restructuring, and other charges of $128.9 million.
      </li>
    </ul>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Brand Summary</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        UGG brand net sales for the third quarter decreased (5.3)% to $704.0
        million compared to $743.2 million for the same period last year. On a
        constant currency basis, sales decreased (4.4)%. The year over year
        decrease was driven by lower domestic wholesale sales, primarily due
        to a slower than expected start to the quarter, partially offset by
        stronger than expected DTC comparable sales.
      </li>
      <li style="margin-bottom: 10.0px">
        Teva&#174; brand net sales for the third quarter increased 3.9% to $14.6
        million compared to $14.1 million for the same period last year. On a
        constant currency basis, sales increased 2.0%. The increase in sales
        was driven by an increase in global DTC sales.
      </li>
      <li style="margin-bottom: 10.0px">
        Sanuk brand net sales for the third quarter decreased (18.4)% to $13.9
        million compared to $17.0 million for the same period last year on
        both a reported and constant currency basis. The decrease in sales was
        driven by a decrease in global wholesale and distributor sales.
      </li>
      <li style="margin-bottom: 10.0px">
        Combined net sales for the third quarter of the Company&#8217;s other brands
        increased 28.6% to $27.8 million compared to $21.6 million for the
        same period last year. On a constant currency basis, sales increased
        27.9%. The increase was primarily attributable to increased HOKA ONE
        ONE&#174; sales and Koolaburra&#174; by UGG sales. HOKA ONE ONE brand net sales,
        which are included as part of the Company&#8217;s other brand sales,
        increased 18.3% compared to the same period last year.
      </li>
    </ul>
    <p>
      <b>Channel Summary (included in the brand sales numbers above)</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Wholesale and distributor net sales for the third quarter decreased
        (12.6)% to $388.6 million compared to $444.6 million for the same
        period last year. On a constant currency basis, sales decreased
        (12.5)%.
      </li>
      <li style="margin-bottom: 10.0px">
        DTC net sales for the third quarter increased 5.8% to $371.7 million
        compared to $351.3 million for the same period last year. On a
        constant currency basis, sales increased 7.4%. DTC comparable sales
        for the third quarter increased 4.7% over the same period last year.
      </li>
    </ul>
    <p>
      <b>Geographic Summary (included in the brand and channel sales numbers
      above)</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Domestic net sales for the third quarter decreased (9.9)% to $489.5
        million compared to $543.3 million for the same period last year.
      </li>
      <li style="margin-bottom: 10.0px">
        International net sales for the third quarter increased 7.2% to $270.8
        million compared to $252.6 million for the same period last year. On a
        constant currency basis, sales increased 11.7%.
      </li>
    </ul>
    <p>
      <b>Balance Sheet</b>
    </p>
    <p>
      At December 31, 2016, cash and cash equivalents were $296.4 million
      compared to $263.0 million at December 31, 2015. The Company had $62.4
      million in outstanding borrowings at December 31, 2016 compared to $56.3
      million at December 31, 2015.
    </p>
    <p>
      Company-wide inventories at December 31, 2016 increased 0.8% to $373.5
      million from $370.6 million at December 31, 2015. By brand, UGG
      inventory decreased (0.1)% to $287.2 million at December 31, 2016, Teva
      inventory increased 7.1% to $31.1 million at December 31, 2016, Sanuk
      inventory decreased (3.9)% to $22.3 million at December 31, 2016, and
      the other brands inventory increased 6.1% to $32.9 million at December
      31, 2016.
    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Full Year Fiscal 2017 Outlook for the Twelve Month Period Ending
      March 31, 2017</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        The Company now expects fiscal year 2017 net sales to be down
        approximately (5.0)%.
      </li>
      <li style="margin-bottom: 10.0px">
        Gross margin for fiscal 2017 is expected to be approximately 47.0%.
      </li>
      <li style="margin-bottom: 10.0px">
        SG&amp;A expenses as a percentage of sales are expected to be
        approximately 38% on a non-GAAP basis.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company expects fiscal 2017 non-GAAP diluted earnings per share to
        be in the range of $3.45 to $3.55. This excludes any pretax charges
        that may occur from any further restructuring charges.
      </li>
      <li style="margin-bottom: 10.0px">
        The effective tax rate is expected to be approximately 27% on a
        non-GAAP basis.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company expects total impairment, restructuring, and other charges
        for fiscal year 2017 to be approximately $150 million.
      </li>
    </ul>
    <p>
      <b>Fourth Quarter Fiscal 2017 Outlook for the Three Month Period Ending
      March 31, 2017</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        The Company expects fourth quarter fiscal year 2017 net sales to be in
        the range of down approximately (6)% to (5)% versus the same period
        last year.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company expects non-GAAP diluted earnings per share to be in the
        range of a loss of $(0.10) to break-even compared to non-GAAP diluted
        earnings per share of $0.11 for the same period last year. This
        excludes any pretax charges that may occur from any further
        restructuring charges.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company expects restructuring charges for fourth quarter fiscal
        year 2017 to be approximately $20 million.
      </li>
    </ul>
    <p>
      <b>Non-GAAP Financial Measures</b>
    </p>
    <p>
      We present certain Non-GAAP financial measures in this press release,
      including Non-GAAP SG&amp;A expenses, Non-GAAP operating income and Non-GAAP
      diluted earnings per share, to provide information that may assist
      investors in understanding our financial results and assessing our
      prospects for future performance. We believe these Non-GAAP financial
      measures are important indicators of our operating performance because
      they exclude items that are unrelated to, and may not be indicative of,
      our core operating results, such as restructuring charges relating to
      retail store closures and office consolidations. In particular, we
      believe that the exclusion of certain costs and charges allows for a
      more meaningful comparison of our results from period to period. These
      Non-GAAP measures, as we calculate them, may not necessarily be
      comparable to similarly titled measures of other companies and may not
      be appropriate measures for comparing the performance of other companies
      relative to Deckers. These Non-GAAP financial results are not intended
      to represent, and should not be considered to be more meaningful
      measures than, or alternatives to, measures of operating performance as
      determined in accordance with GAAP. To the extent we utilize such
      Non-GAAP financial measures in the future, we expect to calculate them
      using a consistent method from period to period. A reconciliation of
      each of the financial measures to the most directly comparable GAAP
      measures has been provided under the heading &#8220;Reconciliation of GAAP
      Financial Measures to Non-GAAP Financial Measures&#8221; in the financial
      statement tables included below.
    </p>
    <p>
      <b>Conference Call Information</b>
    </p>
    <p>
      The Company&#8217;s conference call to review the results for the third
      quarter 2017 will be broadcast live today, Thursday, February 2, 2017 at
      4:30 pm Eastern Time and hosted at <u><i>www.deckers.com</i></u>. You
      can access the broadcast by clicking on the &#8220;Investor Information&#8221; tab
      and then clicking on the microphone icon at the top of the page.
    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>About Deckers Brands</b>
    </p>
    <p>
      Deckers Brands is a global leader in designing, marketing and
      distributing innovative footwear, apparel and accessories developed for
      both everyday casual lifestyle use and high performance activities. The
      Company&#8217;s portfolio of brands includes UGG&#174;, Koolaburra&#174; by UGG, HOKA
      ONE ONE&#174;, Teva&#174; and Sanuk&#174;. Deckers Brands products are sold in more
      than 50 countries and territories through select department and
      specialty stores, Company-owned and operated retail stores, and select
      online stores, including Company-owned websites. Deckers Brands has a
      40-year history of building niche footwear brands into lifestyle market
      leaders attracting millions of loyal consumers globally. For more
      information, please visit <u>www.deckers.com</u>.
    </p>
    <p>
      <b>Forward-Looking Statements</b>
    </p>
    <p>
      This press release contains &#8220;forward-looking statements&#8221; within the
      meaning of the federal securities laws, which statements are subject to
      considerable risks and uncertainties. These forward-looking statements
      are intended to qualify for the safe harbor from liability established
      by the Private Securities Litigation Reform Act of 1995. Forward-looking
      statements include all statements other than statements of historical
      fact contained in this press release, including statements regarding our
      anticipated financial performance, including our projected net sales,
      margins, expenses and earnings per share, as well as statements
      regarding the implementation or expected outcome of our various product,
      pricing, branding and marketing strategies. We have attempted to
      identify forward-looking statements by using words such as &#8220;anticipate,&#8221;
      &#8220;believe,&#8221; &#8220;could,&#8221; &#8220;estimate,&#8221; &#8220;expect,&#8221; &#8220;intend,&#8221; &#8220;may,&#8221; &#8220;plan,&#8221;
      &#8220;predict,&#8221; &#8220;project,&#8221; &#8220;should,&#8221; &#8220;will,&#8221; or &#8220;would,&#8221; and similar
      expressions or the negative of these expressions.
    </p>
    <p>
      Forward-looking statements represent our management&#8217;s current
      expectations and predictions about trends affecting our business and
      industry and are based on information available as of the time such
      statements are made. Although we do not make forward-looking statements
      unless we believe we have a reasonable basis for doing so, we cannot
      guarantee their accuracy or completeness. Forward-looking statements
      involve numerous known and unknown risks, uncertainties and other
      factors that may cause our actual results, performance or achievements
      to be materially different from any future results, performance or
      achievements predicted, assumed or implied by the forward-looking
      statements. Some of the risks and uncertainties that may cause our
      actual results to materially differ from those expressed or implied by
      these forward-looking statements are described in the section entitled
      &#8220;Risk Factors&#8221; in our Annual Report on Form 10-K for the fiscal year
      ended March 31, 2016, as well as in our other filings with the
      Securities and Exchange Commission.
    </p>
    <p>
      Except as required by applicable law or the listing rules of the New
      York Stock Exchange, we expressly disclaim any intent or obligation to
      update any forward-looking statements, or to update the reasons actual
      results could differ materially from those expressed or implied by these
      forward-looking statements, whether to conform such statements to actual
      results or changes in our expectations, or as a result of the
      availability of new information.
    </p>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="15">
          <b>DECKERS OUTDOOR CORPORATION</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="15">
          <b>AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="15">
          <b>Condensed Consolidated Statements of Comprehensive Income</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="15">
          <b>(Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="15">
          <b>(Amounts in thousands, except for per share data)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="6">
          <b>Three-month period ended</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="6">
          <b>Nine-month period ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="6">
          <b>December 31,</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="6">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom">
          <b>2016</b>
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2015</b>
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom">
          <b>2016</b>
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2015</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net sales
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          760,345
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          795,902
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1,420,682
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1,496,562
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Cost of sales
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          376,711
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          404,885
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          744,371
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          804,836
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          383,634
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          391,017
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          676,311
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          691,726
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          330,384
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          188,517
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          647,357
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          501,721
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          53,250
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          202,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          28,954
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          190,005
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Other expense, net
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          2,363
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          1,842
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          4,476
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          4,187
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          50,887
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          200,658
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          24,478
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          185,818
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Income tax expense
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          9,860
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          43,737
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          3,064
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          39,847
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          41,027
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          156,921
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          21,414
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          145,971
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Other comprehensive (loss) income, net of tax
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Unrealized (loss) gain on foreign currency hedging
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          (1,399
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1,417
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          620
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          981
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="top">
          Foreign currency translation adjustment
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (13,067
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (3,568
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (10,224
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (1,893
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 30.0px; text-align: left" valign="top">
          Total other comprehensive (loss) income
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (14,466
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (2,151
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (9,604
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          (912
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: left; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left" valign="top">
          Comprehensive income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          26,561
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          154,770
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          11,810
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          145,059
        </td>
        <td style="border-bottom-width: 2.25pt; border-bottom-color: black; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net income per share:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1.28
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          4.85
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          0.67
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          4.47
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1.27
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          4.78
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          0.66
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          4.40
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Weighted-average common shares outstanding:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          31,973
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,341
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,018
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,655
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,309
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,843
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,377
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          33,157
        </td>
        <td>

        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="6">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="6">
          <b>DECKERS OUTDOOR CORPORATION</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="6">
          <b>AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="6">
          <b>Condensed Consolidated Balance Sheets</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="6">
          <b>(Unaudited)</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="6">
          <b>(Amounts in thousands)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="2">
          <b>December 31,</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top">
          <b>March 31,</b>
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 65.0px; text-align: left" valign="top">
          <b>Assets</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2016</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current assets:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          296,428
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          245,956
        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          Trade accounts receivable, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          216,786
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          160,154
        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          373,502
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          299,911
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 30.0px; text-align: left" valign="top">
          Other current assets
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          81,982
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          79,744
        </td>
      </tr>
      <tr>
        <td style="padding-left: 40.0px; text-align: left" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          968,698
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          785,765
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          240,618
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          237,246
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Other noncurrent assets
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          159,989
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          255,057
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 40.0px; text-align: left" valign="top">
          Total assets
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          1,369,305
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          1,278,068
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 65.0px; text-align: left" valign="top">
          <b>Liabilities and Stockholders' Equity</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current liabilities:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          Short-term borrowings
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          30,168
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          67,475
        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          Trade accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          172,751
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          100,593
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 30.0px; text-align: left" valign="top">
          Other current liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          124,059
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          70,430
        </td>
      </tr>
      <tr>
        <td style="padding-left: 40.0px; text-align: left" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          326,978
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          238,498
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Long-term liabilities:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          Mortgage payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,227
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,631
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 30.0px; text-align: left" valign="top">
          Other liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          39,602
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          39,468
        </td>
      </tr>
      <tr>
        <td style="padding-left: 40.0px; text-align: left" valign="top">
          Total long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          71,829
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          72,099
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 40.0px; text-align: left" valign="top">
          Total stockholders' equity
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          970,498
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          967,471
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 40.0px; text-align: left" valign="top">
          Total liabilities and stockholders' equity
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          1,369,305
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          1,278,068
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Reconciliation of GAAP Financial Measures to Non-GAAP
            Financial Measures</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <b>DECKERS BRANDS - GAAP to Non-GAAP Reconciliation</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <b>For the Three Months Ended December 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          (in thousands, except per share data)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          (unaudited)
        </td>
      </tr>
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid" colspan="7">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="7">
          <b>Three-month period ended December 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="2">
          <b>Non-GAAP</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="2">
          <b>GAAP Measures</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top">
          <b>Restructuring and</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="2">
          <b>Measures</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="2">
          <b>(As Reported)</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top">
          <b>Other Charges (1)</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="2">
          <b>(Excluding Items) (2)</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net sales
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          760,345
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          760,345
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Cost of sales
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          376,711
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          376,711
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          383,634
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          383,634
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          330,384
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom">
          (128,935)
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          201,449
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          53,250
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="bottom">
          128,935
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          182,185
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Other expense, net
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          2,363
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          2,363
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          50,887
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          179,822
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Income tax expense
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          9,860
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          47,092
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          41,027
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          132,730
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net income per share:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1.28
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          4.15
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1.27
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          4.11
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Weighted-average common shares outstanding:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          31,973
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          31,973
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,309
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,309
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (1)
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Amounts as of December 31, 2016 reflect charges related to
            restructuring costs as a result of retail store closures, office
            consolidations and the impairment of goodwill and patents related
            to the Sanuk brand.
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (2)
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            The tax rate applied to the Non-GAAP measures is 26.2% for the
            fiscal quarter ended December 31, 2016. The difference from the
            GAAP tax rate is a result of the jurisdictional tax rates applied
            to the restructuring charges.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="width: 100%; margin-left: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="9">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Reconciliation of GAAP Financial Measures to Non-GAAP
            Financial Measures</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <b>DECKERS BRANDS - GAAP to Non-GAAP Reconciliation</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <b>For the Nine Months Ended December 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          (in thousands, except per share data)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          (unaudited)
        </td>
      </tr>
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid" colspan="7">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="7">
          <b>Nine-month period ended December 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="2">
          <b>Non-GAAP</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top" colspan="2">
          <b>GAAP Measures</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="top">
          <b>Restructuring and</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="2">
          <b>Measures</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="2">
          <b>(As Reported)</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top">
          <b>Other Charges (1)</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="top" colspan="2">
          <b>(Excluding Items) (2)</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net sales
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1,420,682
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          1,420,682
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Cost of sales
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            744,371
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          744,371
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          676,311
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          676,311
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          647,357
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: center; border-bottom-style: solid" valign="bottom">
          (131,570)
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          515,787
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          28,954
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center" valign="bottom">
          131,570
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          160,524
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Other expense, net
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          4,476
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          4,476
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          24,478
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          156,048
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Income tax expense
        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          3,064
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-width: 1.0pt; border-bottom-color: black; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 1.0pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: solid" valign="bottom">
          40,960
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          21,414
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; border-bottom-width: 2.25pt; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; text-align: right; border-bottom-style: double" valign="bottom">
          115,088
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net income per share:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          0.67
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          3.59
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          0.66
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          3.55
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Weighted-average common shares outstanding:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,018
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,018
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,377
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right" valign="bottom">
          32,377
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (1)
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Amounts as of December 31, 2016 reflect charges related to
            restructuring costs as a result of retail store closures, office
            consolidations and the impairment of goodwill and patents related
            to the Sanuk brand.
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (2)
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            The tax rate applied to the Non-GAAP measures is 26.2% for the
            nine months ended December 31, 2016. The difference from the GAAP
            tax rate is a result of the jurisdictional tax rates applied to
            the restructuring charges.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br><b>Investor Contact:</b><br>Deckers Brands<br>Steve Fasching<br>VP,
      Strategy &amp; Investor Relations<br>805.967.7611
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
