Deckers Bets on Brand Momentum: Can HOKA & UGG Keep Up the Growth?

Deckers Outdoor Corporation’s DECK performance was driven by the continued strength of its two flagship brands, HOKA and UGG, both of which sustained strong consumer demand through innovation, disciplined marketplace execution and effective seasonal transitions. In the fourth quarter of fiscal 2025, HOKA and UGG posted year-over-year sales growth of 10% and 3.6%, respectively.

HOKA maintained momentum with updated models like the Bondi 9 and Clifton 10. This is expected to continue into fiscal 2026 with new launches such as the Rocket X3 and Arahi 8. HOKA now has five product franchises, each generating more than $100 million annually, highlighting its scalable growth. International expansion, especially in the EMEA and China, is accelerating and supported by initiatives like the HOKA Experience Center in Shanghai.

UGG also continued evolving beyond its cold-weather roots with hybrid, year-round offerings such as the Tasman slipper-shoe, Lowmel sneaker and Goldenstar sandals. These products reflect UGG’s broadened relevance and its increasing alignment with casual lifestyle trends.

In fiscal 2025, HOKA’s international revenues grew 39% year over year, now comprising 34% of its total brand sales, up from 30% in the previous year. Similarly, UGG’s international revenues rose 20% and now represent 39% of total sales of the brand, up from 37% a year ago, reflecting strong global brand resonance. HOKA generated net sales of $2.2 billion in fiscal 2025, up 23.6% year over year, while UGG reached $2.5 billion, a 13.1% year-over-year increase. In the first quarter, HOKA is projected to grow in the low-double digits and UGG in the mid-single digits year over year.

DECK’s Competition in Brand Innovation

Wolverine World Wide, Inc. WWW and Urban Outfitters Inc. URBN are the key footwear companies competing with Deckers in brand innovation.

Wolverine’s flagship brands, Saucony and Merrell, drove strong first-quarter 2025 results. Saucony’s revenues surged 29.6% year over year to $129.8 million, fueled by North America and APAC gains, while Merrell rose 13.2% to $150.6 million. Both brands saw margin improvements from pricing power, with Saucony expanding doors and launching successful innovations like the Endorphin Elite 2 to boost global sales momentum.

URBN’s brand portfolio, comprising Urban Outfitters, Anthropologie, Free People, FP Movement and Nuuly, showcased strong performance in first-quarter fiscal 2026, with all brands delivering positive comps. Urban Outfitters marked its first positive comp in some time, while Nuuly saw a 59.5% increase in net sales due to a 52.9% rise in average active subscribers from the prior-year quarter.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have lost 50% year to date compared with the industry’s decline of 17.6%.

From a valuation standpoint, DECK trades at a forward price-to-earnings ratio of 16.45X, slightly down from the industry’s average of 17.01X. It has a Value Score of D.

The Zacks Consensus Estimate for DECK’s fiscal 2026 earnings implies a year-over-year decline of 4.4%, 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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