HOKA Sales Surge Strengthens the Bull Case for Deckers Stock

Deckers Outdoors Corporation DECK has experienced strong brand performance, which has also driven the company's recent quarterly results. In the second quarter of fiscal 2026, net sales for the HOKA brand increased 11.1% year over year, surpassing the company's overall net sales growth of 9.1%. HOKA's net sales reached $634.1 million in the second quarter compared with $570.9 million in the previous year period.

HOKA’s solid growth, primarily led by its wholesale channel, which rose 13% year-over-year, was supported by strong sell-in and healthy sell-through, reflecting continued consumer demand for the brand's innovative and compelling product lineup. HOKA’s Direct-to-consumer (DTC) sales grew 8% year-over-year, driven by sustained international momentum and improvements in the U.S. market.

Globally, HOKA’s revenue rose 15% in the first half, fueled by its three main road running franchises—Clifton, Bondi, and Arahi. Growth was further supported by expanded and refreshed trail offerings through the Mafate franchise. Strong sell-through and ongoing growth across these core styles indicate positive consumer response to the meaningful product enhancements introduced by HOKA's product team.

HOKA also performed strongly across all international regions in the first half, with notable incremental revenue from EMEA and China. In EMEA, the brand achieved impressive results across countries and distribution channels, supported by market share gains and robust reorder activity from specialty partners.

While the company anticipates a more cautious consumer environment in the second half due to pricing and tariff impacts, HOKA’s innovative product pipeline and international strength position it to maintain its impressive growth pace. Deckers expects HOKA to remain a key growth driver in fiscal 2026, with revenue rising at a low-teens rate. HOKA’s strong sell-through rates and high consumer adoption suggest it will remain the primary driver of Deckers’ long-term growth.

DECK Faces Competition From American Eagle & Boot Barn

American Eagle Outfitters, Inc. AEO in the third quarter of fiscal 2025 delivered a total net revenue of $1.36 billion, representing a 6% increase compared with the prior year, reflecting steady top-line growth. American Eagle’s gross profit rose 5% year over year to $552 million from $527 million. However, gross margin declined 40 basis points to 40.5%, indicating modest margin pressure despite higher revenue and profit levels during the period.

Boot Barn Holdings, Inc. BOOT in the second quarter of fiscal 2026, posted net sales growth of 18.7% year over year to $505.4 million from $425.8 million in the prior-year period. Boot Barn’s gross profit increased to $184.1 million, representing 36.4% of net sales, from $152.9 million, or 35.9% in the prior year. The expansion in gross profit was primarily driven by higher sales volumes and improved merchandise margins, highlighting favorable operating leverage during the period.

Zacks Rundown for DECK

Deckers’ shares have lost 3.2% in the past six months against the industry’s rise of 16.7%. DECK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 15.07, lower than the industry’s average of 18.06.

The Zacks Consensus Estimate for DECK’s current and next fiscal-year earnings implies year-over-year growth of 1.1% and 6.3%, respectively. 

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

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