Deckers Outpaces Forecasts as HOKA and UGG Power Strong Q4 Finish
Deckers Brands (NYSE: DECK) closed its fiscal year on a high note, reporting fourth-quarter results that exceeded analyst expectations and sending its shares higher. The parent company of HOKA and UGG announced sales of $1.96 billion, a 7.1% year-over-year increase, while its GAAP earnings of $3.33 per share soared past consensus estimates by over 20%.
The performance underscores a successful dual-brand strategy in a challenging retail environment. Management pointed to "exceptional global demand" for both HOKA's performance and lifestyle footwear and UGG's expanded offerings, including its men's and sneaker categories. Growth was balanced, with the company's direct-to-consumer (DTC) channels and international markets showing particular strength.
"Our results reflect the power of our focused brand portfolio and disciplined execution," said CEO Stefano Caroti in a statement. He highlighted effective inventory management and a high rate of full-price selling as key factors protecting profitability, allowing gross margins to remain robust despite broader industry pressures.
Bolstered by the quarter's performance, Deckers raised its full-year revenue guidance to a midpoint of $5.41 billion, slightly above prior Wall Street forecasts. CFO Steve Fasching outlined the company's confidence in sustained momentum, fueled by ongoing investments in product innovation, digital marketing, and international expansion. He also acknowledged monitoring external risks, including potential tariff impacts, but expressed confidence in the company's ability to manage through strategic pricing and supply chain agility.
Analyst & Investor Commentary:
"This was a clean beat across the board," said Marcus Chen, a portfolio manager at Horizon Capital. "The international and DTC numbers are especially compelling. It shows these brands have moved beyond their heritage markets and are building loyal, global communities. This isn't just a seasonal win; it's a validation of their long-term brand-building playbook."
"Let's not get carried away," countered Rebecca Shaw, an independent retail analyst known for her skeptical takes. "The guidance raise is microscopic—less than 1%. This feels like a 'sell the news' moment after the stock's run-up. Everyone's cheering HOKA, but what's the plan when the running boom cools? And UGG's foray into men's sneakers is a brutally crowded space. I'm not convinced the growth story justifies the current premium."
"As a long-term shareholder, I'm most encouraged by the margin discipline," shared David Rivera, a small business owner and retail investor. "In an era of constant discounting, maintaining full-price sell-through is huge. It tells me consumers see real value in these products, not just logos. That's a durable advantage."
Looking ahead, investors will be watching Deckers' ability to maintain its growth trajectory. Key focus areas include the scalability of HOKA's international footprint, the consumer reception to UGG's category expansion, and the company's navigation of global supply chain and cost challenges.