Deckers Outdoor (NYSE:DECK) reported record fiscal 2026 revenue and earnings as growth at HOKA and UGG continued to offset a more volatile macroeconomic backdrop, with management outlining plans for high single-digit annual revenue growth through fiscal 2030.
On the company’s fourth-quarter earnings call, President and Chief Executive Officer Stefano Caroti said Deckers closed the year with “exceptional results, strong momentum, and deep conviction in the durability” of its business model. He cited continued product innovation, brand marketing and disciplined marketplace management as drivers of the company’s performance.
For fiscal 2026, Deckers revenue rose 10% from the prior year to $5.47 billion. HOKA and UGG together added more than $500 million in revenue compared with the previous year’s record levels. Diluted earnings per share increased 11% to a record $7.02, compared with $6.33 a year earlier.
Chief Financial Officer Steven Fasching said the company delivered a full-year operating margin of 23.1%, which he described as “best-in-class,” supported by high levels of full-price selling and investment discipline. Gross margin for the year was 57.7%, down 20 basis points from the prior year, with tariff headwinds accounting for about 80 basis points of decline, partially offset by product mix and lower freight costs.
HOKA Posts Its Largest Quarter
HOKA revenue increased 16% for fiscal 2026 to nearly $2.6 billion. In the fourth quarter, the brand generated $671 million in revenue, its largest quarter ever, up 15% from the prior year. Fasching said HOKA’s fourth-quarter direct-to-consumer sales rose 18%, while wholesale increased 13%.
Caroti said HOKA’s growth was driven by broader adoption of its performance products and an expanding audience using the brand for multiple wearing occasions. He highlighted updated and expanded franchises including Bondi, Clifton, Arahi, Gaviota, Cielo, Rocket, Mach and Mafate.
According to Caroti, six HOKA franchise families generated more than $100 million in annual revenue by the end of fiscal 2026, while three more are approaching that milestone. He also said HOKA awareness in the U.S. reached approximately 60%, up from 50% a year earlier, while international awareness averaged roughly 40%, up from about 30%.
Management said HOKA will continue to selectively expand wholesale distribution in fiscal 2027, focusing on sporting goods and athletic specialty retailers. Caroti also said the company expects to open 20 to 25 HOKA stores per year, with a focus on major cities and international markets.
UGG Growth Broadens Beyond Winter Products
UGG revenue rose 8% in fiscal 2026 to $2.7 billion, marking another record year for the brand. Fourth-quarter UGG revenue increased 9% to $409 million, which Fasching said was above the company’s expectations due to extended selling of fall products, primarily through direct-to-consumer channels.
Caroti said UGG’s performance was supported by a more diversified product mix, broader consumer engagement and global market share gains. He pointed to the Tasman franchise, the Tazz, the Love Pack, the Classic Micro boot and heritage slippers as contributors, while also emphasizing the brand’s year-round strategy.
UGG’s sneakers and sandals were a notable growth driver. Caroti said the Lowmel franchise and Golden Collection accounted for more than half of UGG’s growth in fiscal 2026. Newer styles including the Minimel, GoldenGaze and Otzo clog also performed well, according to management.
The company also highlighted traction with male consumers. Caroti said men’s styles accounted for more than 20% of UGG’s global growth in fiscal 2026, with progress across all regions. He noted that a North American collaboration with menswear brand Hidden sold out quickly and attracted a predominantly new and younger consumer base.
Fourth-Quarter Margins Benefit From Full-Price Selling
Deckers’ fourth-quarter revenue rose 10% year over year to $1.12 billion. Gross margin expanded 90 basis points to 57.6%, which Fasching attributed to higher full-price selling across UGG and HOKA, favorable foreign currency exchange rates, reduced freight costs and a slight benefit from product and channel mix. Those factors were partially offset by tariffs.
Fourth-quarter selling, general and administrative expenses were $488 million, or 43.6% of revenue. Fasching said the company shifted some expenses earlier to strengthen its setup for fiscal 2027, including marketing, technology investments and the impact of unfavorable foreign currency remeasurement.
Diluted earnings per share for the quarter were $0.96, compared with $1.00 in the prior-year period.
Deckers repurchased approximately $262 million of stock during the fourth quarter at a weighted average price of $105.61 per share. For fiscal 2026, share repurchases totaled $1.075 billion at a weighted average price of $102.43. The company ended the fiscal year with $1.9 billion in cash and equivalents, inventory of $487 million, down 2% year over year, and no outstanding borrowings.
Fiscal 2027 Guidance Calls for Continued Growth
For fiscal 2027, Deckers expects revenue of $5.86 billion to $5.91 billion, representing high single-digit growth. HOKA is expected to grow at a low double-digit rate, with direct-to-consumer growth outpacing wholesale, while UGG is expected to grow at a mid-single-digit rate with balanced channel growth.
The company expects gross margin of approximately 56.5%, down from fiscal 2026, primarily due to higher freight costs tied to transportation costs and shipping disruption related to the Middle East conflict, as well as increased input costs from material upgrades and inflationary pressures. Fasching said the guidance assumes the current 10% tariff rate remains in effect for the full fiscal year and does not include any assumed government refunds tied to tariffs already paid.
Deckers projected SG&A at approximately 35% of revenue, with higher spending focused on marketing, employees, technology and direct-to-consumer expansion, including HOKA stores. The company expects operating margin of approximately 21.5% and diluted earnings per share of $7.30 to $7.45. Capital expenditures are expected to be $145 million to $155 million.
For the first quarter ending June 30, Fasching said Deckers expects consolidated revenue to rise approximately 5%, marking what he called the company’s first billion-dollar June quarter. HOKA is expected to increase in the high single digits, while UGG is expected to grow in the mid-single digits. First-quarter EPS is projected between $0.82 and $0.87.
Management Sets Multi-Year Framework
Caroti said Deckers expects consolidated revenue to grow at a high single-digit annual rate through fiscal 2030, with HOKA growing at a low double-digit annual rate and UGG increasing at a mid-single-digit annual rate. Management also expects direct-to-consumer sales to grow faster than wholesale and international revenue to grow faster than the U.S.
Fasching said the company anticipates low double-digit annual EPS growth from fiscal 2027 through fiscal 2030, supported by revenue growth, profitability and share repurchases. Caroti said the board’s approval of an additional share repurchase authorization reflected confidence in the company’s multi-year framework.
During the question-and-answer session, Fasching said the company is “extremely confident” in HOKA’s full-year outlook despite first-quarter timing dynamics related to wholesale shipments and product launches. Caroti said international HOKA growth should continue to outpace the U.S., noting that the brand’s awareness remains lower outside the domestic market.
Caroti also said UGG is expected to grow faster in spring and summer than in fall and winter as the brand continues to expand beyond boots into sneakers, sandals, clogs, slippers, apparel and accessories.
About Deckers Outdoor (NYSE:DECK)
Deckers Outdoor Corporation is a global designer, marketer and distributor of footwear, apparel and accessories. The company's product portfolio includes well‐known brands such as UGG, HOKA, Teva, Sanuk and Koolaburra by UGG, spanning a range of lifestyle, performance and outdoor categories. Deckers leverages a blend of proprietary manufacturing, strategic brand storytelling and direct‐to‐consumer retail to serve both fashion‐focused and performance‐oriented customers.
Founded in 1973 by Doug Otto and Karl F.
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