Deckers Bets Big on Wholesale: Will HOKA and UGG Sustain the Pace?

Deckers Outdoor Corporation’s DECK wholesale business was a key driver of revenue growth in the fourth quarter of fiscal 2025, with both HOKA and UGG delivering strong performances. Wholesale revenues rose 12.3% year over year to $611.6 million, reflecting the strength of the channel and its ability to generate incremental sales.

HOKA's growth was fueled by an expanded retail footprint and the successful launch of the Bondi 9, which achieved high sell-through at wholesale partners. UGG’s gains were led by strong demand for seasonal offerings, including the Lowmel sneaker and Golden Collection products.

These successes pushed total revenues to $1.02 billion in the fiscal fourth quarter, up 6% from the prior year, even as direct-to-consumer (“DTC”) sales faced modest pressure. The wholesale channel proved essential in meeting consumer demand and expanding access to new products amid evolving shopping habits.

U.S. wholesale efforts included a pilot with Journeys to attract younger consumers, while international growth was supported by expanded partnerships with Intersport, Sport Check and the JD Group. HOKA's wholesale presence continued to grow globally, particularly in the EMEA and China, with five product franchises now each generating more than $100 million annually.

Throughout fiscal 2025, HOKA’s wholesale revenues rose 24% and UGG’s increased 15% year over year, driven by enhanced productivity in existing locations. Looking forward, Deckers aims for a balanced 50-50 split between wholesale and DTC. With rising brand visibility and strategic retail partnerships, wholesale is expected to continue outpacing DTC in fiscal 2026, especially for HOKA, despite possible challenges from tariffs and economic conditions.

DECK’s Competition in the Wholesale Channel

Steven Madden, Ltd. SHOO and Urban Outfitters Inc. URBN are the key footwear companies competing with Deckers in the wholesale channel.

Steven Madden’s wholesale channel generated $439.3 million in the first quarter of 2025, up 0.2% year over year. Both footwear and accessories grew slightly, led by branded products. Steven Madden noted that private label softness and shipment timing shifts impacted results. Despite tariff pressures, wholesale gross margin improved year over year, reflecting solid execution and pricing strategies.

Urban Outfitters' wholesale channel achieved a 24% revenue increase in first-quarter fiscal 2026, driven by strong full-price sales, particularly from Free People and FP Movement. It noted significant profitability improvement in the segment, supported by strong demand from specialty and department stores, highlighting Urban Outfitters' growing strength and strategic wholesale execution.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have lost 45.4% year to date compared with the industry’s decline of 13.1%.

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 17.82X, slightly above the industry’s average of 17.77X. It has a Value Score of D.

The Zacks Consensus Estimate for DECK’s fiscal 2026 earnings implies a year-over-year decline of 3.3%, whereas the same for fiscal 2027 indicates an 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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