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Deckers Rides International Strength as HOKA & UGG Demand Holds Firm
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Key Takeaways
DECK's international sales rose 9% to $644.7M in Q2, outpacing overall revenue growth.
HOKA and UGG benefited from strong overseas demand, with the Asia-Pacific leading regional growth.
Deckers raised its FY27 EPS outlook to $7.80-$7.95 despite European shipment delays.
Deckers Outdoor Corporation (DECK - Free Report) continues to benefit from international demand for HOKA and UGG. Both brands remain in earlier stages of development across many overseas markets, where consumers often view them through a broader lifestyle lens. These markets offer opportunities to develop emerging categories and establish trends that can gain traction in other regions.
The strength was evident in second-quarter fiscal 2027 results. International sales increased 9% year over year to $644.7 million, exceeding consolidated revenue growth of 3.5%. Overseas markets accounted for 43.5% of quarterly sales, helping offset a 0.4% decline in domestic revenues and reinforcing their contribution to overall growth.
The Asia-Pacific delivered the highest percentage rise among international regions and contributed meaningfully to incremental sales. HOKA’s international revenues increased across wholesale and direct-to-consumer channels, supporting 6.8% growth in global brand sales to $677.2 million. UGG also recorded strong international wholesale performance, contributing to a 3.5% increase in global revenues to $786.4 million.
Demand signals remained strong across Europe, the Middle East and Africa, although a European logistics transition disrupted fulfillment and delayed approximately $22 million in shipments. Deckers implemented corrective measures, with operational performance improving toward quarter-end. However, some affected shipments could face further delays or cancellation, limiting how much revenues may be recovered later in the fiscal year.
Continued international strength is reflected in Deckers’ outlook. For fiscal 2027, the company projects sales of $5.70-$5.725 billion, with HOKA growing at a high-single-digit rate and UGG advancing at a low-single-digit pace. Deckers also raised EPS guidance to $7.80-$7.95, including approximately 52 cents from IEEPA tariff refunds and associated interest, while remaining confident in international demand.
DECK’s Price Performance, Valuation & Estimates
Shares of Deckers have lost 14.5% over the past three months compared with the industry’s 7.5% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, DECK trades at a trailing price-to-sales ratio of 2.06, up from the industry’s average of 1.36. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers’ fiscal 2027 earnings implies year-over-year growth of 12.5%, whereas the same for fiscal 2028 indicates an uptick of 3.5%. The estimates for fiscal 2027 and 2028 have been revised upward by 39 cents and downward by 15 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
DECK currently carries a Zacks Rank #3 (Hold).
Key Picks
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates 62.1% growth from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.
View the Zacks #1 Rank List
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Deckers Rides International Strength as HOKA & UGG Demand Holds Firm
Key Takeaways
Deckers Outdoor Corporation (DECK - Free Report) continues to benefit from international demand for HOKA and UGG. Both brands remain in earlier stages of development across many overseas markets, where consumers often view them through a broader lifestyle lens. These markets offer opportunities to develop emerging categories and establish trends that can gain traction in other regions.
The strength was evident in second-quarter fiscal 2027 results. International sales increased 9% year over year to $644.7 million, exceeding consolidated revenue growth of 3.5%. Overseas markets accounted for 43.5% of quarterly sales, helping offset a 0.4% decline in domestic revenues and reinforcing their contribution to overall growth.
The Asia-Pacific delivered the highest percentage rise among international regions and contributed meaningfully to incremental sales. HOKA’s international revenues increased across wholesale and direct-to-consumer channels, supporting 6.8% growth in global brand sales to $677.2 million. UGG also recorded strong international wholesale performance, contributing to a 3.5% increase in global revenues to $786.4 million.
Demand signals remained strong across Europe, the Middle East and Africa, although a European logistics transition disrupted fulfillment and delayed approximately $22 million in shipments. Deckers implemented corrective measures, with operational performance improving toward quarter-end. However, some affected shipments could face further delays or cancellation, limiting how much revenues may be recovered later in the fiscal year.
Continued international strength is reflected in Deckers’ outlook. For fiscal 2027, the company projects sales of $5.70-$5.725 billion, with HOKA growing at a high-single-digit rate and UGG advancing at a low-single-digit pace. Deckers also raised EPS guidance to $7.80-$7.95, including approximately 52 cents from IEEPA tariff refunds and associated interest, while remaining confident in international demand.
DECK’s Price Performance, Valuation & Estimates
Shares of Deckers have lost 14.5% over the past three months compared with the industry’s 7.5% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, DECK trades at a trailing price-to-sales ratio of 2.06, up from the industry’s average of 1.36. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers’ fiscal 2027 earnings implies year-over-year growth of 12.5%, whereas the same for fiscal 2028 indicates an uptick of 3.5%. The estimates for fiscal 2027 and 2028 have been revised upward by 39 cents and downward by 15 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
DECK currently carries a Zacks Rank #3 (Hold).
Key Picks
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates 62.1% growth from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.