Deckers Brands: Hoka and Ugg drive sales

The US footwear company Deckers Brands has announced its financial results for the fourth quarter and full year ended March 31, 2026. The company achieved record sales, driven by continued momentum from Hoka and Ugg.

For the full fiscal year 2026, net sales increased 9.8 percent to $5.47 billion, compared to $4.99 billion a year ago. On a currency-adjusted basis, net sales increased by nine percent.

“Fiscal 2026 was another record year for Deckers. Sales and profit growth were driven by the continued momentum of Hoka and the consistent strength of Ugg,” said CEO Stefano Caroti.

The brand division results showed a strong year for the most important labels. Hoka brand net sales rose 15.9 percent to $2.59 billion, compared to $2.23 billion in the previous fiscal year. Ugg’s net sales grew 8.2 percent to $2.74 billion from $2.53 billion previously. Meanwhile, the other brands in the portfolio reported a 33.9 percent decline in net sales to $146.20 million, compared to $221.20 million. This was primarily due to the phasing out of the standalone Koolaburra business and the sale of Sanuk.

Across channels, wholesale net sales increased 12.3 percent to $3.21 billion, compared to $2.86 billion. Direct-to-consumer net sales increased 6.3 percent to $2.26 billion from $2.13 billion. Comparable D2C net sales increased 4.6 percent.

Geographically, U.S. domestic sales remained nearly flat, increasing 0.2 percent to $3.19 billion. International net sales, however, grew significantly by 26.8 percent to $2.28 billion, compared to $1.80 billion in the previous fiscal year. Gross margin for the full year was 57.7 percent, compared to 57.9 percent. Operating income reached $1.26 billion, up from $1.18 billion.

“Our financial strength and robust business model continue to drive our category-leading brands, driving high-quality growth and supporting targeted investments in our long-term opportunities,” said Steve Fasching, Chief Financial Officer of the US group.

Net sales in the fourth quarter increase by almost ten percent

In the fourth quarter, net sales increased 9.6 percent to $1.12 billion, compared to $1.02 billion in the same period last year. On a currency-adjusted basis, net sales grew by 7.7 percent.

Hoka net sales for the quarter increased 14.5 percent to $671.20 million. Ugg net sales grew 9.2 percent to $408.60 million. The other brands saw a decline of 35.6 percent to $39.50 million. Wholesale sales rose 7.1 percent to $654.90 million. D2C channels increased 13.2 percent to $464.40 million, with comparable D2C net sales increasing 8.2 percent.

International regions remained the growth driver in the fourth quarter, increasing 25.5 percent to $469.50 million. US domestic sales, however, only increased by 0.3 percent to $649.80 million. Fourth quarter operating income was $156.70 million, compared to $173.90 million.

Outlook for the 2027 financial year

For the twelve-month period ended March 31, 2027, consolidated net sales are forecast to be in a range of $5.86 billion to $5.91 billion. Hoka net sales are expected to increase in the low double-digit percentage range. Growth in the mid-single-digit percentage range is expected for Ugg. The gross margin is forecast at around 56.5 percent and the operating margin at around 21.5 percent.

Looking further ahead, the Group outlined a multi-year financial framework for the financial years ending March 31, 2028 to March 31, 2030. The company expects annual increases in consolidated net sales in the high single-digit percentage range. This is supported by low double-digit growth at Hoka and mid-single digit growth at Ugg. The operating margin should be kept in the low 20 percent range. A continued share repurchase program is expected to support low double-digit diluted earnings per share growth.