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NIKE vs. Deckers: Which Athletic Footwear Stock Holds More Promise?
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Key Takeaways
NIKE sees strength in performance categories, but Q4 revenues fell 12% y/y, with a gross margin contraction.
Deckers posts robust HOKA and UGG growth, supported by wholesale gains and global consumer demand.
China remains a challenge for NIKE, while Deckers records strong international growth across EMEA and APAC.
Competition in the athletic footwear market is intensifying, with NIKE Inc. (NKE - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) emerging as the key names capturing investor interest. NIKE continues to leverage its global brand strength and extensive product lineup, while Deckers is building momentum through impressive growth in its HOKA and UGG brands. As consumer trends shift and industry dynamics evolve, the pressing question becomes: which stock offers greater upside potential in the coming months?
The Case for NIKE
NKE continues to reinforce its position as a global brand leader, with NIKE, Jordan and Converse shaping both culture and performance worldwide. In fiscal 2025, the brand regained momentum through iconic sports moments at the Champions League final, Roland Garros and the NBA Finals. These activations showcased Nike’s unmatched reach and ability to connect emotionally with consumers through athlete-driven storytelling, further strengthening its cultural influence.
Performance categories delivered strong results in the fourth quarter. Running grew in the high-single digits, led by the Vomero 18, which surpassed $100 million in sales within just three months of launch. Women’s basketball also jumped more than 50% year over year, anchored by the rapid sell-out of A’ja Wilson’s A-ONE signature shoe. These results underscore how sport-led innovation and athlete partnerships are igniting demand across categories.
Marketplace and distribution strategies are contributing to renewed traction. Wholesale collaborations with DICK’S Sporting Goods and JD Sports drove higher sell-through rates, while NIKE Direct gained momentum through premium in-store experiences. Events like the After Dark run in Los Angeles translated into the best sales day at The Grove store in three years. Together with a new Amazon partnership, these initiatives demonstrate the effectiveness of Nike’s integrated marketplace approach.
However, financial headwinds remain evident. Fourth-quarter revenues fell 12% to $11.1 billion, while gross margins contracted 440 basis points to 40.3% due to heavy discounting and supply-chain deleverage. NIKE Digital declined 26% as the company pulled back from promotional traffic to reposition the platform as a premium, full-price channel. These strategic choices are critical for long-term health but continue to weigh on near-term profitability.
Greater China also presents ongoing challenges, with quarterly revenues falling 20% and EBIT declining 45%. Traffic remains weak, the digital landscape is highly promotional, and resets in monobrand stores are still in the early phases. While localized innovations and refreshed retail concepts are being tested, management acknowledged that recovery in China will lag behind North America and EMEA.
The Case for Deckers
DECK is showcasing strong momentum across its brand portfolio, with both UGG and HOKA delivering impressive results in the fiscal first quarter. HOKA rose 19.8% to $653.1 million, while UGG climbed 18.9% to $265.1 million, reflecting the brands’ ability to resonate across both performance and lifestyle categories. These achievements highlight the company’s steady focus on product innovation, expanding wholesale presence and strengthening global consumer engagement, all of which position Deckers for sustainable long-term growth.
International markets are becoming a powerful growth driver, diversifying Deckers’ revenue base. Companywide international revenues jumped 49.7% year over year, with HOKA achieving record wholesale reorders in Europe and maintaining strong momentum across the APAC region, including China. UGG also recorded robust demand internationally, with the largest year-over-year gains coming from EMEA and China.
Innovation and brand storytelling remain central to Deckers’ strategy, fueling consumer excitement and reinforcing brand loyalty. HOKA continues to invest in design and product development with launches such as Arahi 8, Mafate 5 and Rocket X 3, while preparing for upcoming innovations like Mach 7 and Speedgoat updates. UGG is also strengthening its year-round relevance through introductions such as the PeakMod clog and refreshed silhouettes across its core franchises.
Deckers’ omni-channel and wholesale strategies are driving scalable growth while preserving premium brand positioning. Wholesale net sales rose 26.7% in the first quarter, led by HOKA’s 30% increase in global wholesale revenues and strong partnerships with key retailers, including JD Group, Intersport and Sport Chek. Selective retail expansion in cities like Berlin and Milan has enhanced brand visibility and consumer experiences.
However, DECK is not without challenges. The company faces profitability pressures from multiple headwinds, including $185 million in anticipated tariff costs tied to potential Vietnam duty hikes. The gross margin declined 110 basis points year over year in the first quarter due to a less favorable channel mix, increased freight expenses and higher promotions. Weakness in HOKA’s U.S. direct-to-consumer business, combined with elevated inventory levels and rising SG&A expenses, adds strain. With its strong global momentum and continued innovation, Deckers remains well-placed to navigate near-term challenges and sustain growth over the coming years.
NKE vs. DECK: How Do Estimates Stack Up?
The Zacks Consensus Estimate for NIKE’s fiscal 2026 sales and earnings per share (EPS) suggests year-over-year declines of 1.3% and 21.8%, respectively. The consensus estimate for EPS for the current fiscal year has moved down 10.6% in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers' fiscal 2026 sales and EPS implies year-over-year growth of 9% and a decline of 0.6%, respectively. The consensus estimate for EPS for the current fiscal year has increased 4% in the past 60 days.
Image Source: Zacks Investment Research
NKE vs. DECK: A Look at Stock Performances
DECK shares have risen 3.6% over the past three months, and the NKE stock has gained 26.9% during the same period. Nike’s rally reflects renewed brand momentum from sports activations, category growth, and stronger marketplace strategies, outweighing near-term margin pressures. Deckers delivered solid results through HOKA and UGG, but profitability challenges and cost headwinds limited its upside.
Image Source: Zacks Investment Research
NIKE vs. Deckers: A Dive Into Stock Valuation
NIKE’s forward 12-month price-to-earnings (P/E) multiple sits at 40.28, above its median of 27.56 in the last three years. DECK is trading at a forward P/E multiple of 16.13, below its median of 22.75 in the last three years. We note that NIKE seems pricier than Deckers in terms of their current P/E ratios.
Image Source: Zacks Investment Research
NKE or DECK: Which is the Smarter Bet?
Deckers stands out as the stronger investment candidate, backed by strong growth in HOKA and UGG, robust international expansion and a healthy pipeline of product innovation. Its attractive valuation relative to historical levels supports the case of holding the stock, offering investors growth potential at a discount.
While NIKE continues to invest in innovation, retail refinement and digital transformation to reignite momentum, it faces near-term headwinds from revenue declines, margin pressure and ongoing weakness in China. In the current environment, Deckers’ consistent execution, diversified growth drivers, and favorable long-term outlook make it the better option to hold.
NKE currently carries a Zacks Rank #4 (Sell), whereas DECK has a Zacks Rank #3 (Hold).
Image: Bigstock
NIKE vs. Deckers: Which Athletic Footwear Stock Holds More Promise?
Key Takeaways
Competition in the athletic footwear market is intensifying, with NIKE Inc. (NKE - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) emerging as the key names capturing investor interest. NIKE continues to leverage its global brand strength and extensive product lineup, while Deckers is building momentum through impressive growth in its HOKA and UGG brands. As consumer trends shift and industry dynamics evolve, the pressing question becomes: which stock offers greater upside potential in the coming months?
The Case for NIKE
NKE continues to reinforce its position as a global brand leader, with NIKE, Jordan and Converse shaping both culture and performance worldwide. In fiscal 2025, the brand regained momentum through iconic sports moments at the Champions League final, Roland Garros and the NBA Finals. These activations showcased Nike’s unmatched reach and ability to connect emotionally with consumers through athlete-driven storytelling, further strengthening its cultural influence.
Performance categories delivered strong results in the fourth quarter. Running grew in the high-single digits, led by the Vomero 18, which surpassed $100 million in sales within just three months of launch. Women’s basketball also jumped more than 50% year over year, anchored by the rapid sell-out of A’ja Wilson’s A-ONE signature shoe. These results underscore how sport-led innovation and athlete partnerships are igniting demand across categories.
Marketplace and distribution strategies are contributing to renewed traction. Wholesale collaborations with DICK’S Sporting Goods and JD Sports drove higher sell-through rates, while NIKE Direct gained momentum through premium in-store experiences. Events like the After Dark run in Los Angeles translated into the best sales day at The Grove store in three years. Together with a new Amazon partnership, these initiatives demonstrate the effectiveness of Nike’s integrated marketplace approach.
However, financial headwinds remain evident. Fourth-quarter revenues fell 12% to $11.1 billion, while gross margins contracted 440 basis points to 40.3% due to heavy discounting and supply-chain deleverage. NIKE Digital declined 26% as the company pulled back from promotional traffic to reposition the platform as a premium, full-price channel. These strategic choices are critical for long-term health but continue to weigh on near-term profitability.
Greater China also presents ongoing challenges, with quarterly revenues falling 20% and EBIT declining 45%. Traffic remains weak, the digital landscape is highly promotional, and resets in monobrand stores are still in the early phases. While localized innovations and refreshed retail concepts are being tested, management acknowledged that recovery in China will lag behind North America and EMEA.
The Case for Deckers
DECK is showcasing strong momentum across its brand portfolio, with both UGG and HOKA delivering impressive results in the fiscal first quarter. HOKA rose 19.8% to $653.1 million, while UGG climbed 18.9% to $265.1 million, reflecting the brands’ ability to resonate across both performance and lifestyle categories. These achievements highlight the company’s steady focus on product innovation, expanding wholesale presence and strengthening global consumer engagement, all of which position Deckers for sustainable long-term growth.
International markets are becoming a powerful growth driver, diversifying Deckers’ revenue base. Companywide international revenues jumped 49.7% year over year, with HOKA achieving record wholesale reorders in Europe and maintaining strong momentum across the APAC region, including China. UGG also recorded robust demand internationally, with the largest year-over-year gains coming from EMEA and China.
Innovation and brand storytelling remain central to Deckers’ strategy, fueling consumer excitement and reinforcing brand loyalty. HOKA continues to invest in design and product development with launches such as Arahi 8, Mafate 5 and Rocket X 3, while preparing for upcoming innovations like Mach 7 and Speedgoat updates. UGG is also strengthening its year-round relevance through introductions such as the PeakMod clog and refreshed silhouettes across its core franchises.
Deckers’ omni-channel and wholesale strategies are driving scalable growth while preserving premium brand positioning. Wholesale net sales rose 26.7% in the first quarter, led by HOKA’s 30% increase in global wholesale revenues and strong partnerships with key retailers, including JD Group, Intersport and Sport Chek. Selective retail expansion in cities like Berlin and Milan has enhanced brand visibility and consumer experiences.
However, DECK is not without challenges. The company faces profitability pressures from multiple headwinds, including $185 million in anticipated tariff costs tied to potential Vietnam duty hikes. The gross margin declined 110 basis points year over year in the first quarter due to a less favorable channel mix, increased freight expenses and higher promotions. Weakness in HOKA’s U.S. direct-to-consumer business, combined with elevated inventory levels and rising SG&A expenses, adds strain. With its strong global momentum and continued innovation, Deckers remains well-placed to navigate near-term challenges and sustain growth over the coming years.
NKE vs. DECK: How Do Estimates Stack Up?
The Zacks Consensus Estimate for NIKE’s fiscal 2026 sales and earnings per share (EPS) suggests year-over-year declines of 1.3% and 21.8%, respectively. The consensus estimate for EPS for the current fiscal year has moved down 10.6% in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers' fiscal 2026 sales and EPS implies year-over-year growth of 9% and a decline of 0.6%, respectively. The consensus estimate for EPS for the current fiscal year has increased 4% in the past 60 days.
Image Source: Zacks Investment Research
NKE vs. DECK: A Look at Stock Performances
DECK shares have risen 3.6% over the past three months, and the NKE stock has gained 26.9% during the same period. Nike’s rally reflects renewed brand momentum from sports activations, category growth, and stronger marketplace strategies, outweighing near-term margin pressures. Deckers delivered solid results through HOKA and UGG, but profitability challenges and cost headwinds limited its upside.
Image Source: Zacks Investment Research
NIKE vs. Deckers: A Dive Into Stock Valuation
NIKE’s forward 12-month price-to-earnings (P/E) multiple sits at 40.28, above its median of 27.56 in the last three years. DECK is trading at a forward P/E multiple of 16.13, below its median of 22.75 in the last three years. We note that NIKE seems pricier than Deckers in terms of their current P/E ratios.
Image Source: Zacks Investment Research
NKE or DECK: Which is the Smarter Bet?
Deckers stands out as the stronger investment candidate, backed by strong growth in HOKA and UGG, robust international expansion and a healthy pipeline of product innovation. Its attractive valuation relative to historical levels supports the case of holding the stock, offering investors growth potential at a discount.
While NIKE continues to invest in innovation, retail refinement and digital transformation to reignite momentum, it faces near-term headwinds from revenue declines, margin pressure and ongoing weakness in China. In the current environment, Deckers’ consistent execution, diversified growth drivers, and favorable long-term outlook make it the better option to hold.
NKE currently carries a Zacks Rank #4 (Sell), whereas DECK has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.