Deckers Brands Delivers Record Fiscal 2026 Performance Driven by HOKA and UGG Growth
Deckers Brands reported record financial results for the fourth quarter and full fiscal year ended March 31, 2026, highlighting strong momentum across its portfolio led by the continued expansion of the HOKA and UGG brands. The company also introduced its fiscal 2027 outlook and a multi-year financial framework extending through fiscal 2030, signaling confidence in sustained long-term growth, profitability, and shareholder returns.
President and Chief Executive Officer Stefano Caroti said the company achieved another exceptional year through disciplined brand building, product innovation, and strong marketplace execution. According to Caroti, the performance of HOKA and the resilience of UGG demonstrate the long-term strength of Deckers’ portfolio and reinforce the company’s competitive leadership position within the global footwear and lifestyle market.
Fourth Quarter Fiscal 2026 Results
During the fourth quarter, Deckers generated net sales of $1.119 billion, representing a 9.6% increase compared to $1.022 billion in the same period last year. On a constant currency basis, revenue increased 7.7%, reflecting broad-based consumer demand despite ongoing macroeconomic uncertainty and currency fluctuations.
The company’s growth continued to be fueled primarily by the performance of the HOKA and UGG brands. HOKA quarterly net sales climbed 14.5% to $671.2 million from $586.1 million a year earlier, supported by strong global demand in the performance running and athletic footwear categories. Meanwhile, UGG net sales increased 9.2% to $408.6 million compared to $374.3 million in the prior-year quarter, driven by successful product diversification and sustained consumer engagement across seasonal and lifestyle collections.
Sales from Deckers’ other brands declined 35.6% to $39.5 million, compared to $61.3 million in the same quarter last year. The decline was primarily attributed to the ongoing phase-out of standalone Koolaburra operations and the previously announced sale of the Sanuk brand.
From a channel perspective, wholesale net sales rose 7.1% to $654.9 million, while direct-to-consumer (DTC) sales increased 13.2% to $464.4 million. Comparable DTC sales grew 8.2%, reflecting stronger consumer traffic and improved conversion across retail and e-commerce platforms.
Geographically, international markets continued to outperform domestic operations. International revenue surged 25.5% to $469.5 million, compared to $374.1 million in the prior-year period, highlighting accelerating demand across Europe, Asia-Pacific, and other global markets. Domestic revenue remained relatively flat, increasing just 0.3% to $649.8 million.
Gross margin for the quarter improved to 57.6% from 56.7% last year, benefiting from favorable product mix and pricing discipline. However, selling, general, and administrative expenses increased significantly to $487.9 million from $405.8 million, reflecting higher brand investments, marketing expenses, and infrastructure spending to support future growth initiatives.
Quarterly operating income declined to $156.7 million from $173.9 million a year earlier, while diluted earnings per share came in at $0.96 compared to $1.00 in the prior-year period.
Full Fiscal Year 2026 Performance
For the full fiscal year, Deckers delivered record consolidated net sales of $5.472 billion, an increase of 9.8% from $4.986 billion in fiscal 2025. On a constant currency basis, annual revenue rose 9.0%.
HOKA remained one of the company’s largest growth engines, with annual net sales increasing 15.9% to $2.587 billion. The brand continued to strengthen its position in global performance footwear through innovation, expanded distribution, and growing brand recognition among consumers worldwide.
UGG also posted strong results, with annual net sales increasing 8.2% to $2.739 billion. The brand benefited from continued momentum in both core boot categories and newer lifestyle product offerings, further broadening its consumer reach.
Other brands recorded annual net sales of $146.2 million, down 33.9% from $221.2 million in the prior year due to portfolio rationalization efforts involving Koolaburra and Sanuk.
Wholesale channel sales for the year increased 12.3% to $3.208 billion, while DTC sales rose 6.3% to $2.264 billion. Comparable DTC sales increased 4.6%, demonstrating consistent demand across Deckers’ owned retail and digital channels.
International business remained a major growth contributor, with revenue climbing 26.8% to $2.281 billion. Domestic revenue was essentially flat at $3.192 billion.
Gross margin for the year was 57.7%, slightly below the 57.9% reported last year. SG&A expenses rose to $1.895 billion from $1.707 billion, reflecting increased investments in global expansion, marketing, talent, and operational capabilities.
Despite higher operating costs, operating income improved to $1.263 billion compared to $1.179 billion last year. Diluted earnings per share increased 10.9% to $7.02 from $6.33, demonstrating continued earnings strength and operational discipline.
Strong Balance Sheet and Capital Allocation
Deckers ended fiscal 2026 with a strong financial position. Cash and cash equivalents totaled $1.907 billion as of March 31, 2026, slightly above the $1.889 billion reported a year earlier. Inventories decreased to $487.0 million from $495.2 million despite the impact of incremental tariffs, reflecting effective inventory management practices.
The company also maintained a debt-free balance sheet with no outstanding borrowings.
Deckers continued to return significant capital to shareholders through aggressive share repurchases. During the fourth quarter alone, the company repurchased approximately 2.5 million shares for $261.6 million at an average price of $105.61 per share.
For the full fiscal year, Deckers repurchased approximately 10.5 million shares totaling $1.075 billion at an average price of $102.43 per share. As of March 31, 2026, roughly $1.5 billion remained under the existing authorization.
Additionally, the Board of Directors approved a further $3.5 billion increase to the company’s repurchase authorization, bringing the total outstanding authorization to approximately $5 billion. The move underscores management’s confidence in the company’s long-term cash generation capabilities and growth outlook.
Chief Financial Officer Steve Fasching emphasized that the company generated more than $1 billion in free cash flow during fiscal 2026, enabling continued investments in strategic growth initiatives while also delivering meaningful shareholder returns.
Fiscal 2027 Outlook and Long-Term Framework
Looking ahead, Deckers expects fiscal 2027 net sales to range between $5.86 billion and $5.91 billion, representing another year of anticipated growth.
The company forecasts HOKA revenue growth in the low-double-digit percentage range and UGG growth in the mid-single-digit range. Gross margin is expected to be approximately 56.5%, while SG&A expenses are projected to represent roughly 35% of net sales.
Deckers anticipates operating margin of approximately 21.5% and an effective tax rate near 23%. Diluted earnings per share are expected to range between $7.30 and $7.45. The EPS guidance assumes share repurchases equal to approximately 80% of projected fiscal 2027 free cash flow.
Beyond fiscal 2027, Deckers outlined a multi-year financial framework for fiscal years 2028 through 2030. The company expects consolidated annual sales growth in the high-single-digit percentage range, supported by low-double-digit annual growth for HOKA and mid-single-digit annual growth for UGG.
Management also expects to maintain operating margins in the low-20% range while delivering low-double-digit annual diluted EPS growth through a combination of operational performance and ongoing share repurchases.
Despite ongoing macroeconomic challenges, including geopolitical tensions, inflationary pressures, evolving global trade policies, tariff impacts, and foreign exchange volatility, Deckers remains optimistic about its future growth trajectory. The company believes its diversified brand portfolio, global consumer appeal, strong balance sheet, and disciplined operational strategy position it well for sustained long-term success in the global footwear and apparel industry.
