NEWS RELEASE

Exhibit 99.1

Deckers Outdoor Corporation Reports Record Second Quarter Results

GOLETA, Calif.--(BUSINESS WIRE)--July 22, 2004--Deckers Outdoor
Corporation (NASDAQ: DECK)

- Second Quarter Revenue Increases 67% to a Record $40.5 million -

- Reports Record Second Quarter Diluted EPS of $0.43 -

- Raises Guidance for FY 2004 -

Deckers Outdoor Corporation (NASDAQ: DECK) today announced record
financial results for the second quarter ended June 30, 2004.
For the second quarter, net sales increased 67% to $40.5 million
compared to $24.3 million in the same period last year. Net earnings
for the quarter increased 154% to $5.1 million, compared to net
earnings of $2.0 million last year, and diluted earnings per share
increased 153% to $0.43 compared to diluted earnings per share of
$0.17 in the second quarter of 2003.
For the six months ended June 30, 2004, net sales increased 40% to
$84.8 million compared to $60.4 million in the same period last year.
Net earnings for the first half of fiscal 2004 increased 69% to $10.5
million, compared to net earnings of $6.2 million last year. Diluted
earnings per share increased 69% to $0.91 compared to diluted earnings
per share of $0.54 in the first half of fiscal 2003.
Douglas Otto, Chairman & CEO, stated, "These record results were
driven by meaningful sales increases across all of our brands combined
with continued leverage of our operating expenses. Our ability to grow
our top line by 67% and achieve a 153% increase in diluted earnings
per share during the quarter underscores the strength of our business,
our strong brands, and our high degree of execution. Most importantly,
we expect this positive momentum to continue, and we are increasing
our guidance for the remainder of the year."
Including sales from both the wholesale divisions and the Internet
and catalog retailing business, Teva sales for the second quarter
increased 21% to $27.1 million from $22.4 million in the same period a
year ago, while UGG sales were up dramatically to $11.7 million versus
$0.4 million last year. Simple sales increased 21% to $1.8 million
compared to $1.5 million a year ago. Sales for the Internet and
catalog retailing business, which are included in the brand sales
numbers above, aggregated approximately $4.9 million for the second
quarter of 2004, up 218% from $1.5 million for the second quarter of
2003.
Mr. Otto further commented, "Teva's double digit sales gain during
the second quarter capped off a record spring season for the brand
which was fueled by strong sales of our core sport sandals across all
channels of distribution, as well as increases in our thong business
and our expansion into closed toe footwear. We are very encouraged as
we head into fall and as we increase penetration in the much larger
rugged outdoor market through increased offerings of our Teva closed
toe product. UGG revenues were up significantly during spring driven
by robust growth at our major retail partners, which reflects the
strength of the brand and the continuing heightened demand for UGG
product. Furthermore, we announced a licensing agreement for UGG
Australia outerwear as we look to further leverage the brand's growing
status in the luxury goods sector. Simple sales were up 21%, which
represents the brand's strongest quarterly increase in four years, and
illustrates the significant progress we have made during the last
year. We were particularly pleased with Simple's success this spring
in sneakers and sandals and are very excited about our new offering of
suede, fleece-lined boots for fall and holiday, as well as the
successful re-launch of the clog collection."
Gross margin for the quarter was 46.6% compared to 48.6% in the
second quarter of last year, due in part to the significant increase
in UGG sales during the quarter, which generally carry a lower gross
margin than Teva, an increased impact of closeout sales, and the
non-recurrence of last year's gain caused by the favorable impact of
selling in Euros in the European markets in 2003, whereas all sales
are denominated in U.S. dollars in 2004. Selling, general and
administrative expenses decreased to 23.8% of net sales, compared to
31.4% in the second quarter of 2003, largely due to the continued
leverage of operating costs on the increased sales volume, and a
decrease in bad debts and marketing costs during the second quarter.
Also, during the second quarter of last year, the Company had
$500,000, or $0.03 per diluted share, of litigation income resulting
from a European anti-dumping matter. Despite the non-recurrence of
this matter, the operating margin improved considerably to 22.9% of
sales for the three months ended June 30, 2004 compared to 19.2% for
the three months ended June 30, 2003.
During the quarter, Deckers successfully completed a follow-on
public stock offering, raising approximately $36 million. With a
portion of the net proceeds, the Company repaid all of the outstanding
debt previously incurred for the purchase of the worldwide rights to
Teva in November 2002. In connection with the early repayment of debt
during the second quarter of 2004, the Company incurred approximately
$0.7 million, or $0.04 per diluted share, of expenses related to the
write-off of financing costs and prepayment fees. As a result of the
stock offering and the subsequent repayment of debt, the Company's
balance sheet at June 30, 2004 reflects no outstanding long-term debt
and approximately $24 million in cash.
Due to the better-than-expected second quarter results and the
ongoing strength in our overall business, the Company has increased
its guidance for fiscal year 2004. Deckers now anticipates net sales
for fiscal year 2004 to range from $182 million to $190 million and
expects diluted earnings per share to range from $1.70 to $1.75, up
from the previous guidance of $1.42 to $1.51 per share. Deckers
currently expects third quarter 2004 net sales to range from $45
million to $49 million and diluted earnings per share to range from
$0.33 to $0.36 per share. For the fourth quarter, Deckers currently
forecasts net sales to range from $52 million to $56 million and
diluted earnings per share to range from $0.45 to $0.47.
Deckers now expects 2004 Teva sales to be $87 million to $89
million, Simple sales to be $9 million to $11 million and UGG sales to
be $86 million to $90 million.
Mr. Otto concluded, "We are extremely pleased by our record
performance for the first half of fiscal 2004, highlighted by the
ongoing strength of Teva, the growing popularity of UGG and the
resurgence of Simple. All three of our brands performed well in their
respective categories, our balance sheet is clean as a result of our
recent public offering, and our prospects are bright. We remain
committed to capitalizing on the many opportunities that lie ahead and
returning value to our stockholders."
Deckers Outdoor Corporation builds niche products into global
lifestyle brands by designing and marketing innovative, functional and
fashion-oriented footwear, developed for both high performance outdoor
activities and everyday casual lifestyle use. The Company's products
are offered under the Teva, Simple and UGG brand names.
*All statements in this press release that are not historical
facts are forward-looking statements, including the Company's
estimates regarding sales and earnings per share results for the year
ending December 31, 2004 and for the quarters ending September 30,
2004 and December 31, 2004, as well as the 2004 sales expectations for
each of the Company's three brands. These forward-looking statements
are inherently uncertain and are based on the Company's expectations
as of today, July 22, 2004. In addition, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results to differ materially from
those expressed or implied by such forward-looking statements. Many of
the risks, uncertainties and other factors are discussed in detail in
the Company's Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2003. Among the factors which could affect our financial
condition and results of operations are the following: our ability to
anticipate fashion trends; whether the UGG brand will continue to grow
at the rate it has experienced in the recent past; possible shortages
in top grade sheepskin or interruption in the supply of other
materials, which could interrupt product manufacturing and increase
product costs; the risk that we are unable to accurately forecast
consumer demand; the sensitivity of the footwear industry to changes
in general economic conditions; whether we are successful in
continuing to implement our growth strategy; the success of our
customers; our ability to protect our intellectual property; our
ability to develop and patent new technologies as our existing patents
expire; the difficulty of matching inventory to future customer
demand; the risk that counterfeiting can harm our sales or our brand
image; our dependence on independent manufacturers to supply our
products; the risk that raw materials do not meet our specifications
or that the prices of raw materials may increase, which would
potentially cause a high return rate, a loss of sales or a reduction
in our gross margins; risks of international commerce resulting from
our reliance on manufacturers outside the U.S.; whether we might be
subject to certain federal regulatory fines; the risk that our
manufacturers, suppliers or licensees might fail to conform to labor
laws or to our ethical standards; the need to secure sufficient and
affordable sources of raw materials; our reliance on licensing
partners to expand our business; the challenge of managing our brands
for growth; currency risk; delays and unexpected costs that can result
from customs regulations; the sensitivity of our sales, particularly
of the Teva(R) and UGG(R) brands, to seasonal and weather factors; our
reliance on independent distributors in international markets; legal
compliance challenges and political and economic risk in our
international markets; the potential impact of litigation; the effect
of consolidations and restructurings on our customers in the footwear
industry; intense competition within the footwear industry; and the
threat that terrorism could disrupt commerce in the U.S. and abroad.
The Company intends to continue its practice of not updating
projections until its next quarterly results announcement. The Company
disclaims any obligation to update any such factors or to publicly
announce the results of any revisions to any of the forward-looking
statements contained in the Annual Report on Form 10-K/A for fiscal
year 2003, the subsequent Quarterly Reports on Form 10-Q or this news
release.


DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)

June 30, December 31,
Assets 2004 2003
------------ ------------

Current assets:
Cash and cash equivalents $ 24,394,000 6,662,000
Trade accounts receivable, net 19,627,000 18,745,000
Inventories 19,596,000 18,004,000
Prepaid expenses and other current
assets 1,197,000 694,000
Deferred tax assets 2,137,000 2,137,000
------------ ------------
Total current assets 66,951,000 46,242,000

Property and equipment, at cost, net 3,121,000 2,969,000
Intangible assets, less applicable
amortization 70,446,000 70,572,000
Other assets 521,000 1,243,000
------------ ------------

$141,039,000 121,026,000
============ ============

Liabilities and Stockholders' Equity

Current liabilities:
Notes payable and current installments
of long-term debt $ ----- 3,792,000
Trade accounts payable 7,536,000 11,220,000
Accrued expenses 7,675,000 4,959,000
Income taxes payable 8,065,000 3,468,000
------------ ------------
Total current liabilities 23,276,000 23,439,000
------------ ------------

Long-term debt, less current installments ----- 26,495,000
Deferred tax liabilities-noncurrent 568,000 568,000

Stockholders' equity:
Preferred stock ----- -----
Common stock 116,000 97,000
Additional paid-in capital 63,328,000 27,115,000
Retained earnings 53,521,000 43,052,000
Accumulated other comprehensive income 230,000 260,000
------------ ------------
Total stockholders' equity 117,195,000 70,524,000
------------ ------------

$141,039,000 121,026,000
============ ============




DECKERS OUTDOOR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Unaudited)

Three-month period ended Six-month period ended
June 30, June 30,
------------------------ -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------

Net sales $40,546,000 24,342,000 84,818,000 60,444,000
Cost of sales 21,640,000 12,510,000 45,506,000 32,372,000
----------- ----------- ----------- -----------
Gross profit 18,906,000 11,832,000 39,312,000 28,072,000

Selling, general and
administrative
expenses 9,632,000 7,654,000 20,410,000 15,807,000
Litigation income ----- (500,000) ----- (500,000)
----------- ----------- ----------- -----------
Earnings from
operations 9,274,000 4,678,000 18,902,000 12,765,000

Other expense
(income):
Interest, net 1,171,000 1,334,000 2,289,000 2,431,000
Other 1,000 1,000 (4,000) (14,000)
----------- ----------- ----------- -----------
Earnings before income
tax expense 8,102,000 3,343,000 16,617,000 10,348,000

Income tax expense 3,015,000 1,337,000 6,148,000 4,139,000
----------- ----------- ----------- -----------

Net earnings $ 5,087,000 2,006,000 10,469,000 6,209,000
=========== =========== =========== ===========


Net earnings per
share:
Basic $ 0.47 0.21 1.02 0.65
Diluted 0.43 0.17 0.91 0.54
=========== =========== =========== ===========

Weighted-average
shares:
Basic 10,713,000 9,536,000 10,233,000 9,545,000
Diluted 11,920,000 11,611,000 11,505,000 11,487,000
=========== =========== =========== ===========


CONTACT: For: DECKERS OUTDOOR CORPORATION
Company Contact:
Scott Ash, Chief Financial Officer, 805/967-7611
or
Investor Relations:
Integrated Corporate Relations, Inc.
Chad A. Jacobs/Brendon Frey, 203/222-9013