Deckers' International Segment Emerges as Key Growth Engine in FY26

Deckers Outdoor Corporation’s DECK international segment has emerged as a key structural growth driver, accounting for an increasing share of the company’s global business. Management highlighted that international regions significantly outpaced domestic growth in the first half of fiscal 2026, underscoring the company’s expanding global relevance. This momentum reflects sustained demand for both HOKA and UGG across major overseas markets, supported by brand investments and expanding consumer reach.

International growth is being supported by a balanced channel strategy, with wholesale serving as the primary entry point in newer markets and direct-to-consumer strengthening long-term engagement. The company continues to target a 50:50 mix between wholesale and DTC over time, allowing Deckers to scale efficiently while preserving pricing discipline. Management also noted that international wholesale expansion has been more pronounced than in the United States, reflecting stronger brand momentum abroad.

In EMEA, HOKA delivered double-digit growth across multiple countries in the second quarter of fiscal 2026, aided by strong sell-through with specialty retailers and increasing market share in key footwear categories. Management cited Germany, France, Italy and the U.K. as notable contributors, supported by new retail touchpoints, including store openings and pop-up experiences designed to elevate brand visibility and consumer trial.

China remains a standout opportunity, driven by premium positioning and innovation-led demand. Management highlighted industry-leading full-price selling, strong wholesale sell-through and expanding loyalty membership, particularly among younger and female consumers. Selective store openings in key cities continue to attract high-quality traffic, reinforcing brand momentum in the region.

Deckers expects international markets to continue outpacing U.S. growth for the fiscal 2026, contributing meaningfully toward the company’s long-term revenue target of $5.35 billion. With disciplined distribution, strong brand equity and rising global awareness, management believes the international segment is well-positioned to deliver sustainable growth and support long-term margin resilience.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have lost 2.9% in the past three months against the industry’s growth of 9.9%.

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 14.38X, slightly down from the industry’s average of 16.11X.

The Zacks Consensus Estimate for DECK’s current fiscal-year earnings implies year-over-year growth of 1.3%, whereas the same for the next fiscal year indicates an uptick of 7.3%. Estimates for the current and next fiscal years have been revised upward by 3 cents and 8 cents, respectively, in the past 30 days.

DECK currently carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

Some other top-ranked stocks are FIGS Inc. FIGS, American Eagle Outfitters Inc. AEO and The Gap, Inc. GAP. 

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 450% and 7.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests a decline of 20.7% and growth of 2.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.

Gap is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It currently flaunts a Zacks Rank of 2.

The Zacks Consensus Estimate for Gap’s fiscal 2026 earnings and sales implies a decline of 2.7% and growth of 1.9%, respectively, from the year-ago actuals. Gap delivered a trailing four-quarter average earnings surprise of 19.1%.

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

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