Key Highlights
- Deckers delivered record fiscal Q4 revenue of $1.12 billion, representing a 10% increase and surpassing the Street’s $1.09 billion projection.
- Fiscal 2026 full-year revenue reached $5.47 billion, climbing 10%, with adjusted EPS of $7.02, up 11%—both exceeding analyst expectations.
- Hoka achieved its strongest quarter in history with $671 million in revenue, marking a 15% year-over-year increase.
- UGG revenue climbed 9% in Q4 to $409 million, propelled by expanded product offerings including sneakers, sandals, and men’s collections.
- Deckers projected fiscal 2027 revenue between $5.86 and $5.91 billion with EPS ranging from $7.30 to $7.45, targeting high single-digit growth annually through 2030.
Deckers Outdoor announced record-breaking revenue and earnings for its fiscal fourth quarter and complete fiscal year, with both its Hoka and UGG brands demonstrating robust performance that exceeded analyst projections.
Shares initially surged 4.3% during after-hours trading Wednesday before moderating. By Friday premarket, the stock traded down approximately 1% near $101, following a 4.5% gain during Thursday’s regular session. Year-to-date, the stock has declined roughly 1% and is down 18.6% over the trailing twelve months.
Deckers Outdoor Corporation, DECK
For the fiscal fourth quarter concluded March 31, Deckers posted revenue of $1.12 billion, climbing 10%, alongside adjusted EPS of $0.96. Analysts had projected $1.09 billion in sales and $0.83 in EPS.
For the complete fiscal 2026 year, revenue totaled $5.47 billion, up 10%, with diluted EPS of $7.02, increasing 11% from the previous year’s $6.33. Consensus estimates had called for $5.44 billion in revenue and $6.89 in EPS.
Hoka Achieves Historic Revenue Milestone
Hoka delivered an exceptional quarter. Revenue climbed to $671 million, up 15% year-over-year and marking the brand’s largest quarterly performance in its existence. For the complete year, Hoka revenue increased 16% to approximately $2.6 billion.
Direct-to-consumer Hoka sales jumped 18% in Q4, while wholesale channels expanded 13%. CEO Stefano Caroti noted that six Hoka franchise families now produce over $100 million in annual revenue, with three additional franchises nearing that benchmark. U.S. brand recognition reached approximately 60%, advancing from 50% one year prior.
Caroti highlighted franchises such as Bondi, Clifton, and Mach as significant drivers. He indicated the company intends to launch 20 to 25 Hoka retail locations annually, concentrating on major metropolitan areas and international territories.
UGG revenue expanded 9% in Q4 to $409 million, exceeding the $376 million Wall Street anticipated. For the full year, UGG revenue advanced 8% to $2.7 billion.
The brand’s expansion stemmed from a more diverse product portfolio. Caroti stated that sneakers and sandals—including the Lowmel franchise and Golden Collection—represented over half of UGG’s annual growth. Men’s products comprised more than 20% of UGG’s global expansion during the fiscal year.
Profitability and Capital Allocation
Full-year operating margin stood at 23.1%. Gross margin registered 57.7%, declining 20 basis points, with tariff pressures contributing approximately 80 basis points of headwind, partially balanced by reduced freight expenses.
Deckers produced over $1 billion in free cash flow and executed $1.075 billion in stock repurchases throughout fiscal 2026 at an average price of $102.43 per share. The company concluded the year holding $1.9 billion in cash with zero outstanding debt.
For fiscal 2027, Deckers anticipates revenue between $5.86 and $5.91 billion with EPS ranging from $7.30 to $7.45. Gross margin is forecast at approximately 56.5%, with elevated freight costs and material expenses creating pressure on the metric.
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 EPS is expected between $0.82 and $0.87.
Deckers has surpassed revenue and earnings projections in 19 of the previous 20 quarters.
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