Deckers Eyes 50% International Sales: Can It Hit the Goal Early?

Deckers Outdoor Corporation’s DECK strong international expansion strategy has played a key role in driving the company’s growth momentum. Both HOKA and UGG significantly contributed to the company’s global expansion. In the fourth quarter of fiscal 2025, international sales grew 19.9% year over year to $374.1 million, highlighting the importance of international markets for the company.

In fiscal 2025, HOKA’s international revenues grew 39% from the prior year, now accounting for 34% of the brand’s total sales, up from 30% in fiscal 2024. Similarly, UGG’s international revenues increased 20% year over year, representing 39% of total UGG sales in fiscal 2025, up from 37% in the previous fiscal year. These increases reflect strong global brand resonance and underscore the expanding footprint of both brands in the international markets.

In fiscal 2025, Deckers strategically scaled its presence in key regions such as Europe, the Middle East and Africa (EMEA), and China. Notable initiatives included the opening of HOKA’s Shanghai Experience Center and the expansion of distribution through local partnerships in rapidly growing cities.

In Europe, HOKA gained significant shelf space and consumer recognition in key markets such as the U.K., Germany, France and Italy. Meanwhile, in China, the brand enhanced its digital engagement and athlete-led visibility by sponsoring road races and emphasizing premium positioning.

The company aims to increase its international revenue mix to 50% of total sales over the coming years, reducing its reliance on the North America market. Management emphasized that international growth is expected to continue outpacing growth in the U.S. market going forward.

DECK’s Competition in the International Market

Wolverine World Wide WWW and Skechers U.S.A., Inc. SKX are the key footwear companies competing with Deckers in the global arena.

Wolverine demonstrated strong international growth in the first quarter of 2025, with sales rising 16.4% year over year, led by Saucony and Merrell. Saucony doubled revenues in the Asia Pacific, and opened flagship stores in Tokyo and London, while Merrell saw strong gains in the Asia Pacific and EMEA. Its asset-light global distribution across 170 countries, plus a diversified supply chain with less reliance on China, positions Wolverine well for global growth.

Skechers continues to drive international growth, which now represents 65% of its total business. In the first quarter of 2025, EMEA sales grew 14%, the Americas rose 8.3%, and APAC increased 12%, excluding China. Its extensive retail footprint includes above 5,300 stores worldwide, and it plans to open 150-170 more in 2025, focusing on high-growth international markets.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have lost 47.9% year to date compared with the industry’s decline of 13.7%.

DECK Stock's YTD Performance

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 17.02X, slightly below the industry’s average of 17.72X. It has a Value Score of C.

The Zacks Consensus Estimate for DECK’s fiscal 2026 earnings implies a year-over-year decline of 3.3%, whereas its fiscal 2027 earnings estimates suggest a year-over-year uptick of 9.1%. The estimates for fiscal 2026 and 2027 have been southbound in the past 30 days.

DECK currently carries a Zacks Rank #4 (Sell).

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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