Deckers posted record annual sales as Hoka and UGG drove another earnings beat

Revenue for the quarter came to $1.12 billion, a 9.6% gain over the $1.02 billion posted in the year-ago period. Per-share earnings on a diluted basis were $0.96, slipping from $1.00 twelve months prior. Both figures topped what Wall Street had been looking for: Analysts expected quarterly revenue of $1.07 billion to $1.11 billion and diluted EPS of $0.73 to $0.94, per WWD.

Among individual brands, Hoka was the standout, generating $671.2 million in quarterly revenue — a 14.5% year-over-year increase — and setting an all-time record for the label in a single quarter, according to The Wall Street Journal. Speaking with analysts, CEO Stefano Caroti pointed to fresh product introductions, expanding direct sales, and strengthening competitive position domestically as the key drivers. UGG contributed $408.6 million, up 9.2%. The remaining portfolio, grouped under an "other brands" umbrella that houses Teva, contracted 35.6% to $39.5 million, a decline the company tied to its winding down of Koolaburra and its completed divestiture of Sanuk.

Geographically, overseas demand was the growth engine, with revenue from international markets rising 25.5% to $469.5 million, while sales inside the U.S. held roughly flat at $649.8 million. On the channel side, direct-to-consumer revenue reached $464.4 million, a 13.2% advance that outran the 7.1% gain recorded in wholesale.

Across all four quarters of fiscal 2026, Deckers brought in $5.47 billion in revenue, a 9.8% improvement over the prior year. Hoka finished the twelve-month stretch at $2.59 billion, up 15.9%, while UGG reached $2.74 billion, an 8.2% gain. Diluted earnings per share for the full year came to $7.02, compared with $6.33 in fiscal 2025. The company also generated more than $1 billion in free cash flow for the year, CFO Steve Fasching said in a statement.

For fiscal 2027, management guided to consolidated revenue of $5.86 billion to $5.91 billion and projected diluted EPS of $7.30 to $7.45. Hoka is expected to deliver low-double-digit top-line growth in the year ahead, with UGG targeted at a mid-single-digit rate.

Deckers also said its board approved a $3.5 billion increase to its stock repurchase authorization, bringing the total outstanding authorization to approximately $5 billion.

In a written statement, Caroti described the fiscal year as a milestone: "Fiscal 2026 was another record year for Deckers, with revenue and earnings growth powered by the continued momentum of Hoka and the enduring strength of UGG."