EXHIBIT 99.1

Exhibit 99.1

Deckers Outdoor Corporation Reports Record Third Quarter Financial Results

- Company Reports Third Quarter Sales Increased 19.0% to a Third
Quarter Record of $82.3 Million -

- Third Quarter Diluted EPS Increased 31.7% to a Third Quarter
Record of $0.83 -

- Company Raises Fiscal 2006 Outlook -

GOLETA, Calif.--(BUSINESS WIRE)--Oct. 26, 2006--Deckers Outdoor
Corporation (NASDAQGS: DECK) today announced financial results for the
third quarter ended September 30, 2006.

Third Quarter Highlights

-- Net sales increased 19.0% to $82.3 million versus $69.2
million last year; ahead of previous guidance range of $71
million to $74 million.

-- Gross margin increased 320 basis points to 45.2% compared to
42.0% a year ago.

-- Diluted EPS was $0.83; ahead of previous guidance range of
$0.51 to $0.54.

-- Cash and short-term investments increased to $45.3 million
compared to $19.1 million a year ago.

-- Inventories decreased to $51.5 million versus $66.8 million a
year ago.

"Our strong third quarter performance was gratifying, as UGG sales
once again outpaced our expectations," commented President and Chief
Executive Officer, Angel Martinez.

"These results reflect the effective execution of our strategy to
diversify the product line, increase the breadth and depth of each
collection, expand our target demographic, and underscore the growing
lifestyle status of the brand. At the same time, our ability to
control costs, primarily labor and materials, resulted in significant
gross margin expansion for the quarter. However, we expect gross
margins to return to more normalized levels in 2007. We are excited
about our prospects and committed to capitalizing on the many
opportunities that still lie ahead for all three of our brands."

Third Quarter Segment Summary

Teva

Teva net sales for the third quarter increased to $10.0 million
compared to $9.7 million for the same period last year. Teva's
performance was driven by a positive reaction to a limited
introduction of closed toe footwear combined with solid sales of the
traditional sandal offering.

UGG

UGG net sales for the third quarter increased 18.4% to $67.9
million versus $57.3 million for the same period a year ago. Sales
were fueled by robust consumer demand for the new Fall styles,
including fashion boots, casuals, men's and kids, coupled with a
strong reorder business for core styles.

Simple

Simple net sales increased 108.8% to $4.4 million for the third
quarter compared to $2.1 million for the same period last year.
Simple's core sandal and sneaker product lines were the largest
contributors. Additionally, the Green Toe collection experienced
strong retail sell-through across all channels of distribution and in
all geographic regions.

Consumer Direct

Sales for the Consumer Direct business, which are included in the
brand sales numbers above, increased 72.8% to $5.8 million compared to
$3.4 million for the same period a year ago. Results for the third
quarter of 2006 include sales from the Company's two new retail outlet
stores, which were not in operation in the third quarter of 2005.

Full-Year 2006 Outlook

-- The Company raises full year sales guidance to range of $287
million to $290 million versus previous expectation of $272
million to $278 million.

-- The Company raises full year diluted EPS to range of $2.75 to
$2.78 compared to previous expectation of $2.39 to $2.45.

-- Fiscal 2006 guidance includes approximately $1.9 million of
stock compensation expense which includes $0.6 million of
additional stock compensation expense related to the adoption
of Statement of Financial Accounting Standards No. 123R,
effective January 1, 2006. In addition, the guidance includes
approximately $9.0 million related to the previously announced
increase in selling, general and administrative expenses as
part of the strategic initiatives to support future growth.

Fourth Quarter Outlook

-- The Company raises fourth quarter sales guidance to range of
$107 million to $110 million and diluted EPS of $1.27 to $1.30
versus previous expectations of $103 to $106 million and $1.23
to $1.26, respectively.

-- Fourth quarter guidance includes approximately $3.0 million of
expenses associated with the approximate $9.0 million increase
in selling, general and administrative expenses for fiscal
2006, as mentioned above.

The Company's conference call to review third quarter fiscal 2006
results will be broadcast live over the Internet today, Thursday,
October 26, 2006 at 4:30 pm Eastern Time. The broadcast will be hosted
at www.deckers.com and www.earnings.com.

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(R), Simple(R) and UGG(R) brand names, which
are also its registered trademarks.

Certain expectations and projections regarding the future
performance of Deckers Outdoor Corporation discussed in this news
release are forward-looking and are made under the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
including statements related to anticipated revenues, expenses,
earnings, operating cash flows, the outlook for the Company's markets
and the demand for its products. These expectations and projections
are based on currently available competitive, financial and economic
data along with the Company's operating plans as of today, October 26,
2006, and are subject to future events and uncertainties. No one
should assume that any forward-looking statement made by the Company
will remain consistent with the Company's expectations after the date
the forward-looking statement is made. Management cautions the reader
that the following factors, among others, could cause the Company's
actual consolidated results of operations and financial position to
differ materially from those expressed in forward-looking statements:
our ability to anticipate fashion trends; whether the UGG brand will
continue to grow at the same rate it has experienced in the recent
past; shortages of top grade sheepskin could interrupt product
manufacturing and increase product costs; the risk that we are unable
to accurately forecast consumer demand and inventory needs; whether we
are successful in continuing to implement our growth strategy; the
success of our customers; the risk of losing one or more key
customers; our ability to protect our intellectual property; the risk
that counterfeiting can harm our sales or our brand image; our ability
to develop and patent new technologies; our dependence on independent
manufacturers to supply our products; the risk that retailers could
postpone or cancel existing orders; future changes in the price of raw
materials; the effect of future increases in the cost of petroleum and
other energy prices on the costs of production; unpredictable events
and circumstances related to our international operations; the adverse
affect on our business if our independent manufacturers, designated
suppliers or our licensees might violate labor laws or fail to conform
to our ethical standards; risks associated with recruiting licensing
partners and their ability to meet our expectations; the challenge of
managing our brands for growth; our ability to successfully build new
brands; unpredictable fluctuations in our quarterly sales and
operating results; the risk of losing key personnel; currency risk;
the sensitivity of our sales to seasonal and weather conditions; risks
associated with international markets which are subject to a variety
of laws and political and economic risks that may adversely impact our
business; delays and unexpected costs that can result from customs
regulations; our dependence on computer and communication systems;
fluctuating economic conditions; increased levels of competition in
the footwear industry; concentration of ownership in the retail
industry; the risk that world events, such as terrorism, could disrupt
international commerce; volatility of our stock price; the risk that
future sales of our common stock could adversely affect our stock
price; and the prevention or delay of changes in control due to
anti-takeover provisions. Please refer to the Company's reports and
filings with the Securities and Exchange Commission for a further
discussion of these risks and uncertainties. Readers are cautioned not
to place undue reliance on forward-looking statements, which speak
only as of the date they are made. The Company undertakes no
obligation to publicly release or update the results of any revisions
to forward-looking statements, which may be made to reflect new
information, events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. The risks highlighted
herein should not be assumed to be the only items that could affect
the future performance of the Company.




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


September 30, December 31,
Assets 2006 2005
------------- ------------

Current assets:
Cash and cash equivalents $ 17,141 50,749
Short-term investments 28,110 2,500
Trade accounts receivable, net 49,937 40,918
Inventories 51,530 33,374
Prepaid expenses and other current assets 2,239 1,364
Deferred tax assets 5,949 5,949
------------- ------------
Total current assets 154,906 134,854

Property and equipment, at cost, net 5,983 4,711
Intangible assets, less applicable
amortization 69,777 70,009
Other assets 52 52
------------- ------------

$ 230,718 209,626
============= ============

Liabilities and Stockholders' Equity

Current liabilities:
Trade accounts payable $ 10,304 14,506
Accrued expenses 6,628 6,095
Income taxes payable 9,336 7,133
------------- ------------
Total current liabilities 26,268 27,734
------------- ------------

Deferred tax liabilities-noncurrent 4,337 4,337

Stockholders' equity:
Common stock 125 124
Additional paid-in capital 80,350 76,788
Retained earnings 119,415 100,436
Accumulated other comprehensive income 223 207
------------- ------------
Total stockholders' equity 200,113 177,555
------------- ------------

$ 230,718 209,626
============= ============




DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except for per share data)


Three-month Nine-month period
period ended ended
September 30, September 30,
----------------------------------
2006 2005 2006 2005
------- ------- -------- --------

Net sales $82,322 69,193 180,047 173,797
Cost of sales 45,149 40,123 99,133 99,191
------- ------- -------- --------
Gross profit 37,173 29,070 80,914 74,606

Selling, general and administrative
expenses 19,865 15,052 50,684 41,512
------- ------- -------- --------
Income from operations 17,308 14,018 30,230 33,094

Other (income) expense :
Interest, net (673) 167 (1,940) 104
Other 30 --- 13 (3)
------- ------- -------- --------
Income before income taxes 17,951 13,851 32,157 32,993

Income taxes 7,352 5,701 13,178 13,224
------- ------- -------- --------

Net income $10,599 8,150 18,979 19,769
======= ======= ======== ========

Net income per share:
Basic $ 0.85 0.66 1.52 1.60
Diluted 0.83 0.63 1.48 1.54
======= ======= ======== ========

Weighted-average shares:
Basic 12,531 12,358 12,503 12,333
Diluted 12,831 12,856 12,805 12,872
======= ======= ======== ========

CONTACT: Deckers Outdoor Corporation
Zohar Ziv
Chief Financial Officer and
Executive Vice President of Finance and Administration
805-967-7611
or
Investor Relations:
Integrated Corporate Relations, Inc.
Chad A. Jacobs/Brendon Frey
203-682-8200