Will HOKA & UGG Momentum Fuel Another Strong Year for Deckers?

Deckers Outdoor Corporation’s DECK first-quarter fiscal 2026 performance was fueled by the sustained strength of its flagship brands, HOKA and UGG, which continued to capture consumer demand through innovation, disciplined marketplace execution and targeted seasonal strategies. Both HOKA and UGG outperformed expectations, with HOKA’s revenues climbing 19.8% year over year to $653.1 million and that for UGG growing 18.9% to $265.1 million.

HOKA maintained momentum with strong sell-through from updated core franchises Bondi, Clifton and Arahi, led by the successful Arahi 8 launch. This trajectory is expected to continue with recent additions such as Mafate X and Rocket X 3, and upcoming launches, including Mafate 5, Mach 3 and updated Mach 7, Gaviota, and Speedgoat models. International growth, particularly in EMEA, where Europe recorded record wholesale reorders, and China, remains a key driver.

UGG advanced its evolution beyond cold-weather heritage with versatile, year-round offerings such as the PeakMod clog, Lowmel sneaker, and Goldenstar Glide and Villa sandals. These products reflect UGG’s broadened lifestyle relevance and alignment with casual fashion trends. Strategic scarcity in the Tasman franchise is helping build anticipation ahead of peak season.

International revenues for Deckers rose 49.7% year over year in the first quarter, with both brands contributing meaningfully. For fiscal 2026, Deckers anticipates HOKA to remain its fastest-growing brand, with UGG continuing to post gains.

For second-quarter fiscal 2026, net sales are projected between $1.38 billion and $1.42 billion, with HOKA up 10% and UGG at least in the mid-single digits.

How WWW & URBN Stack Up Against DECK

Wolverine World Wide, Inc. WWW and Urban Outfitters Inc. URBN are the key footwear companies competing with Deckers in brand innovation.

Wolverine’s flagship brands, Saucony and Merrell, powered the strong second-quarter 2025 results. Saucony jumped 41.5% on global growth, lifestyle expansion and innovations like Endorphin Elite 2. Merrell rose 10.7% with modern trail products such as Moab Speed 2. Wolverine expanded margins through pricing power and strategic distribution, strengthening performance and lifestyle momentum.

URBN’s brand portfolio, comprising Urban Outfitters, Anthropologie, Free People, FP Movement and Nuuly, showcased strong performance in the first quarter of fiscal 2026, with all brands delivering positive comps. Urban Outfitters marked its first positive comp in some time, while Nuuly saw a 59.5% increase in net sales due to a 52.9% rise in average active subscribers from the prior-year quarter.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have lost 49.9% year to date compared with the industry’s decline of 12.6%.

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 15.77X, below the industry’s average of 17.64X. It has a Value Score of A.

The Zacks Consensus Estimate for DECK’s fiscal 2026 earnings implies a year-over-year decline of 1.1%, whereas the same for fiscal 2027 indicates an uptick of 8.3%. The estimates for fiscal 2026 and 2027 have been upbound by 21 cents and 18 cents, respectively, in the past 30 days.

DECK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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