We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Deckers Bets on Brand Momentum: Can HOKA & UGG Keep Up the Growth?
Read MoreHide Full Article
Key Takeaways
In Q4 FY25, HOKA sales rose 10% and UGG grew 3.6%, powered by product updates and strong demand.
Fiscal Q1 outlook forecasts HOKA growing low-double digits and UGG mid-single digits year over year.
Upcoming HOKA launches and UGG's expanded lifestyle lineup aim to sustain growth into FY26.
Deckers Outdoor Corporation’s (DECK - Free Report) performance was driven by the continued strength of its two flagship brands, HOKA and UGG, both of which sustained strong consumer demand through innovation, disciplined marketplace execution and effective seasonal transitions. In the fourth quarter of fiscal 2025, HOKA and UGG posted year-over-year sales growth of 10% and 3.6%, respectively.
HOKA maintained momentum with updated models like the Bondi 9 and Clifton 10. This is expected to continue into fiscal 2026 with new launches such as the Rocket X3 and Arahi 8. HOKA now has five product franchises, each generating more than $100 million annually, highlighting its scalable growth. International expansion, especially in the EMEA and China, is accelerating and supported by initiatives like the HOKA Experience Center in Shanghai.
UGG also continued evolving beyond its cold-weather roots with hybrid, year-round offerings such as the Tasman slipper-shoe, Lowmel sneaker and Goldenstar sandals. These products reflect UGG’s broadened relevance and its increasing alignment with casual lifestyle trends.
In fiscal 2025, HOKA’s international revenues grew 39% year over year, now comprising 34% of its total brand sales, up from 30% in the previous year. Similarly, UGG’s international revenues rose 20% and now represent 39% of total sales of the brand, up from 37% a year ago, reflecting strong global brand resonance. HOKA generated net sales of $2.2 billion in fiscal 2025, up 23.6% year over year, while UGG reached $2.5 billion, a 13.1% year-over-year increase. In the first quarter, HOKA is projected to grow in the low-double digits and UGG in the mid-single digits year over year.
DECK’s Competition in Brand Innovation
Wolverine World Wide, Inc. (WWW - Free Report) and Urban Outfitters Inc. (URBN - Free Report) are the key footwear companies competing with Deckers in brand innovation.
Wolverine’s flagship brands, Saucony and Merrell, drove strong first-quarter 2025 results. Saucony’s revenues surged 29.6% year over year to $129.8 million, fueled by North America and APAC gains, while Merrell rose 13.2% to $150.6 million. Both brands saw margin improvements from pricing power, with Saucony expanding doors and launching successful innovations like the Endorphin Elite 2 to boost global sales momentum.
URBN’s brand portfolio, comprising Urban Outfitters, Anthropologie, Free People, FP Movement and Nuuly, showcased strong performance in first-quarter fiscal 2026, with all brands delivering positive comps. Urban Outfitters marked its first positive comp in some time, while Nuuly saw a 59.5% increase in net sales due to a 52.9% rise in average active subscribers from the prior-year quarter.
DECK’s Price Performance, Valuation & Estimates
Shares of Deckers have lost 50% year to date compared with the industry’s decline of 17.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 16.45X, slightly down from the industry’s average of 17.01X. It has a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DECK’s fiscal 2026 earnings implies a year-over-year decline of 4.4%, whereas the same for fiscal 2027 indicates an uptick of 9.1%. The estimates for fiscal 2026 and 2027 have been southbound in the past 30 days.
Image: Bigstock
Deckers Bets on Brand Momentum: Can HOKA & UGG Keep Up the Growth?
Key Takeaways
Deckers Outdoor Corporation’s (DECK - Free Report) performance was driven by the continued strength of its two flagship brands, HOKA and UGG, both of which sustained strong consumer demand through innovation, disciplined marketplace execution and effective seasonal transitions. In the fourth quarter of fiscal 2025, HOKA and UGG posted year-over-year sales growth of 10% and 3.6%, respectively.
HOKA maintained momentum with updated models like the Bondi 9 and Clifton 10. This is expected to continue into fiscal 2026 with new launches such as the Rocket X3 and Arahi 8. HOKA now has five product franchises, each generating more than $100 million annually, highlighting its scalable growth. International expansion, especially in the EMEA and China, is accelerating and supported by initiatives like the HOKA Experience Center in Shanghai.
UGG also continued evolving beyond its cold-weather roots with hybrid, year-round offerings such as the Tasman slipper-shoe, Lowmel sneaker and Goldenstar sandals. These products reflect UGG’s broadened relevance and its increasing alignment with casual lifestyle trends.
In fiscal 2025, HOKA’s international revenues grew 39% year over year, now comprising 34% of its total brand sales, up from 30% in the previous year. Similarly, UGG’s international revenues rose 20% and now represent 39% of total sales of the brand, up from 37% a year ago, reflecting strong global brand resonance. HOKA generated net sales of $2.2 billion in fiscal 2025, up 23.6% year over year, while UGG reached $2.5 billion, a 13.1% year-over-year increase. In the first quarter, HOKA is projected to grow in the low-double digits and UGG in the mid-single digits year over year.
DECK’s Competition in Brand Innovation
Wolverine World Wide, Inc. (WWW - Free Report) and Urban Outfitters Inc. (URBN - Free Report) are the key footwear companies competing with Deckers in brand innovation.
Wolverine’s flagship brands, Saucony and Merrell, drove strong first-quarter 2025 results. Saucony’s revenues surged 29.6% year over year to $129.8 million, fueled by North America and APAC gains, while Merrell rose 13.2% to $150.6 million. Both brands saw margin improvements from pricing power, with Saucony expanding doors and launching successful innovations like the Endorphin Elite 2 to boost global sales momentum.
URBN’s brand portfolio, comprising Urban Outfitters, Anthropologie, Free People, FP Movement and Nuuly, showcased strong performance in first-quarter fiscal 2026, with all brands delivering positive comps. Urban Outfitters marked its first positive comp in some time, while Nuuly saw a 59.5% increase in net sales due to a 52.9% rise in average active subscribers from the prior-year quarter.
DECK’s Price Performance, Valuation & Estimates
Shares of Deckers have lost 50% year to date compared with the industry’s decline of 17.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 16.45X, slightly down from the industry’s average of 17.01X. It has a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DECK’s fiscal 2026 earnings implies a year-over-year decline of 4.4%, whereas the same for fiscal 2027 indicates an uptick of 9.1%. The estimates for fiscal 2026 and 2027 have been southbound in the past 30 days.
Image Source: Zacks Investment Research
DECK currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.