Key Takeaways
- Deckers delivered exceptional fiscal Q4 revenue of $1.12 billion, representing a 10% increase and surpassing Wall Street’s projection of $1.09 billion.
- Fiscal 2026 annual revenue reached $5.47 billion, climbing 10%, while adjusted earnings per share hit $7.02, up 11% — exceeding analyst expectations on both metrics.
- Hoka achieved its strongest quarter in company history with $671 million in sales, marking a 15% year-over-year surge.
- UGG brand sales increased 9% during Q4 to $409 million, fueled by expanded offerings across sneakers, sandals, and men’s collections.
- Management projects fiscal 2027 revenue between $5.86–$5.91 billion and earnings per share of $7.30–$7.45, maintaining high single-digit growth targets through the end of the decade.
Deckers Outdoor delivered exceptional financial results for its fiscal fourth quarter and complete fiscal year, with both flagship brands Hoka and UGG generating robust performance that exceeded analyst projections.
Shares climbed 4.3% during Wednesday’s after-hours session before moderating. By Friday’s premarket trading, the stock declined approximately 1%, hovering just above $101, following a 4.5% gain during Thursday’s regular session. Year-to-date, shares remain down roughly 1% and have declined 18.6% over the trailing twelve months.
Deckers Outdoor Corporation, DECK
During the fiscal fourth quarter concluded March 31, Deckers generated revenue of $1.12 billion, representing a 10% increase, alongside adjusted earnings per share of $0.96. Consensus estimates had called for $1.09 billion in sales and $0.83 in EPS.
For the complete fiscal 2026 period, revenue totaled $5.47 billion, up 10%, with diluted earnings per share of $7.02, advancing 11% from the previous year’s $6.33. Analyst projections stood at $5.44 billion in revenue and $6.89 in EPS.
Hoka Achieves Record-Breaking Performance
Hoka delivered an exceptional quarter. Sales reached $671 million, climbing 15% year over year and representing the brand’s largest quarterly performance to date. For the complete fiscal year, Hoka revenue advanced 16% to approximately $2.6 billion.
Direct-to-consumer Hoka sales increased 18% during Q4, while wholesale channels expanded 13%. Chief Executive Stefano Caroti noted that six Hoka franchise collections now produce over $100 million in annual sales, with three additional franchises nearing that milestone. Domestic brand recognition reached approximately 60%, climbing from 50% in the prior year.
Caroti highlighted franchises such as Bondi, Clifton, and Mach as primary growth drivers. The company intends to establish 20 to 25 Hoka retail locations annually, concentrating on metropolitan areas and global markets.
UGG sales expanded 9% in Q4 to $409 million, exceeding the $376 million Wall Street consensus. For the full fiscal year, UGG revenue climbed 8% to $2.7 billion.
The brand’s expansion stemmed from an enhanced product portfolio. Caroti explained that sneakers and sandals — featuring the Lowmel franchise and Golden Collection — contributed more than half of UGG’s annual growth. Men’s product lines represented over 20% of UGG’s worldwide growth throughout the year.
Profitability Metrics and Capital Deployment
Full-year operating margin registered 23.1%. Gross margin measured 57.7%, declining 20 basis points, with tariff pressures contributing approximately 80 basis points of downward impact, partially mitigated by reduced freight expenses.
Deckers produced over $1 billion in free cash flow and executed $1.075 billion in share repurchases throughout fiscal 2026 at an average cost of $102.43 per share. The company concluded the fiscal year holding $1.9 billion in cash with zero outstanding debt obligations.
For fiscal 2027, Deckers anticipates revenue spanning $5.86–$5.91 billion and earnings per share ranging from $7.30–$7.45. Gross margin is forecast at approximately 56.5%, with elevated freight and material costs creating headwinds.
The company’s first-quarter outlook projects revenue growth of roughly 5%, which CFO Steve Fasching characterized as the company’s inaugural billion-dollar June quarter. Q1 earnings per share is expected between $0.82 and $0.87.
Deckers has surpassed revenue and earnings projections in 19 of the previous 20 reporting periods.
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