Deckers Outdoor (DECK) Stock Climbs on Record Quarterly Performance

Key Highlights

• Deckers delivered record fourth-quarter revenue of $1.12 billion, representing a 10% increase and surpassing analyst projections of $1.09 billion.
• Fiscal year 2026 revenue reached $5.47 billion, climbing 10%, while adjusted earnings per share hit $7.02, an 11% increase—both exceeding consensus estimates.
• Hoka achieved a milestone quarter with $671 million in sales, marking 15% year-over-year growth and the brand’s strongest performance to date.
• UGG saw fourth-quarter revenue climb 9% to $409 million, fueled by expanding product categories including athletic footwear, sandals, and men’s collections.
• Management projects fiscal 2027 revenue between $5.86 billion and $5.91 billion, with EPS forecasted at $7.30 to $7.45, targeting sustained high single-digit growth through 2030.

Deckers Outdoor unveiled exceptional financial results for both its fourth quarter and complete fiscal year, with flagship brands Hoka and UGG surpassing market expectations and driving momentum across the portfolio.

Shares experienced an initial 4.3% surge during after-hours trading Wednesday before moderating. The stock traded approximately 1% lower in Friday’s premarket session, hovering just above $101, following a 4.5% gain during Thursday’s regular session. Year-to-date, shares remain down roughly 1%, and have declined 18.6% over the trailing twelve months.

Deckers Outdoor Corporation, DECK

In the fiscal fourth quarter concluding March 31, Deckers generated $1.12 billion in revenue, marking a 10% uptick, alongside adjusted earnings per share of $0.96. The Street consensus had anticipated $1.09 billion in sales and $0.83 per share.

The complete fiscal 2026 year produced revenue of $5.47 billion, up 10%, with diluted earnings per share reaching $7.02, an 11% jump from the previous year’s $6.33. Analyst forecasts had called for $5.44 billion in revenue and $6.89 per share.

Hoka Achieves Historic Quarterly Milestone

Hoka delivered exceptional results during the period. The brand generated $671 million in revenue, climbing 15% year-over-year and marking its strongest quarterly performance on record. For the complete fiscal year, Hoka revenue expanded 16% to approximately $2.6 billion.

Direct-to-consumer Hoka sales advanced 18% during the fourth quarter, while wholesale channels expanded 13%. Chief Executive Stefano Caroti highlighted that six Hoka product families now produce over $100 million annually, with an additional three nearing that benchmark. Domestic brand recognition climbed to approximately 60%, up from 50% in the prior year.

Caroti emphasized key franchise collections including Bondi, Clifton, and Mach as major revenue drivers. The company intends to launch 20 to 25 Hoka retail locations annually, concentrating on metropolitan areas and global markets.

UGG sales increased 9% in the fourth quarter to $409 million, exceeding the $376 million Wall Street projection. Annually, UGG revenue advanced 8% to $2.7 billion.

The brand’s expansion stemmed from enhanced product diversification. Caroti noted that athletic footwear and sandals—including the Lowmel franchise and Golden Collection—contributed over half of UGG’s annual revenue growth. Men’s product lines represented more than 20% of UGG’s worldwide expansion throughout the year.

Profitability Metrics and Capital Allocation

Full-year operating margin stood at 23.1%. Gross margin registered 57.7%, declining 20 basis points, with tariff pressures creating approximately 80 basis points of headwind, partially counterbalanced by reduced freight expenses.

Deckers produced over $1 billion in free cash flow and executed $1.075 billion in share buybacks during fiscal 2026 at an average cost of $102.43 per share. The company concluded the year holding $1.9 billion in cash with zero outstanding debt obligations.

For fiscal 2027, management anticipates revenue ranging from $5.86 billion to $5.91 billion, with earnings per share between $7.30 and $7.45. Gross margin is projected at approximately 56.5%, reflecting anticipated increases in freight and material costs.

First-quarter guidance projects revenue growth of roughly 5%, which CFO Steve Fasching described as the company’s inaugural billion-dollar June quarter. First-quarter EPS is expected between $0.82 and $0.87.

Deckers has surpassed both revenue and earnings projections in 19 of the last 20 reporting periods.

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