DECK's Sustained Brand Strength From UGG & HOKA Drives Growth Momentum

Deckers Outdoor Corporation DECK continues to reinforce its leadership in the global footwear market through the strong positioning of its flagship brands, UGG and HOKA. The company’s strategy centers on premium brand elevation, disciplined marketplace management, and balanced growth across the direct-to-consumer (DTC) and wholesale channels. By preserving full-price selling and expanding internationally, Deckers has maintained brand heat while strengthening long-term consumer loyalty.

UGG delivered record third-quarter fiscal 2026 revenues of $1.31 billion, reflecting a 4.9% year-over-year rise. Growth was balanced across DTC and wholesale, supported by improved in-stock positions and strong holiday demand. Iconic products continued to perform well, while newer franchises, such as Lowmel and Quill, gained momentum. The men’s category and the 365 initiative enhanced year-round appeal, reduced seasonal concentration and expanded category acceptance globally.

HOKA generated $628.9 million in revenues, marking 18.5% year-over-year growth. Both DTC and wholesale channels showed strength, with DTC rising 19% and wholesale up 18%. The revamped HOKA membership program contributed to higher revenue per consumer and increased multi-category purchases, reinforcing the brand’s premium positioning and long-term growth trajectory.

Importantly, HOKA expanded market share in the performance running category while maintaining strong wholesale sell-through rates. International markets, particularly Europe and China, present a significant runway for distribution growth. Product launches, such as updates in stability, racing and trail categories, continue to reinforce performance credibility while lifestyle adoption expands the addressable audience.

Deckers raised its fiscal 2026 revenue outlook to $5.4-$5.425 billion. HOKA is expected to grow in the mid-teens, while UGG is projected to deliver mid-single-digit growth. The company anticipates a gross margin of 57% and EPS of $6.80-$6.85, signaling confidence in sustained brand momentum and continued expansion into fiscal 2027.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have gained 14.5% year to date compared with the industry’s growth of 8.9%.

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 16.31X, below the industry’s average of 19.36X. It has a Value Score of A.

The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and EPS implies growth of 8.9% and 8.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates an 7.5% rise in sales and 6.4% growth in earnings. The consensus estimate for EPS for the current fiscal year has increased 47 cents to $6.88 over the past 30 days, while for the next fiscal year, it has improved by 44 cents to $7.32.

DECK currently carries a Zacks Rank #1 (Strong Buy).

Other Key Picks

Some other top-ranked stocks are FIGS Inc. FIGS, American Eagle Outfitters Inc. AEO and Boot Barn Holdings, Inc. BOOT.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 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 indicates growth of 450% and 7.1%, 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 currently flaunts a Zacks Rank of 1.

The Zacks Consensus Estimate for AEO’s current fiscal-year earnings and sales implies a decline of 20.7% and growth of 2.6%, respectively, from the year-ago actuals. American Eagle delivered a trailing four-quarter average earnings surprise of 35.1%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 26% and 17.6%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 4.9%.

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

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