Deckers Outdoor Corporation (NYSE: DECK) reported fourth-quarter revenue of $1.12 billion, a 10 percent increase year-over-year that beat analyst expectations and sent its stock up more than 4 percent in after-hours trading.
"Our record-breaking results in fiscal year 2026 are a testament to our commitment to innovation and customer satisfaction," Stefano Caroti, President and Chief Executive Officer of Deckers Brands, said in a statement. The company's performance was driven by strong growth in its HOKA and UGG brands.
The footwear designer and distributor posted a quarterly earnings per share (EPS) of $0.96, surpassing the consensus forecast of $0.83. Revenue also outperformed, coming in at $1.12 billion against an anticipated $1.09 billion. The company's gross margin improved to 57.6 percent for the quarter, an increase of 90 basis points from the prior year.
Shares of Deckers rose 4.38 percent in after-hours trading to $99.50 following the release. The positive earnings surprise continues a recent trend for the company, reflecting strong operational efficiency and sustained demand for its products.
Performance by Brand
Deckers' portfolio of brands delivered robust results, continuing a trend of growth in a competitive market.
- HOKA: The running shoe brand achieved its largest quarter in history, with revenue climbing 15 percent year-over-year. The growth was fueled by new product launches and strong direct-to-consumer sales.
- UGG: The brand known for its sheepskin boots also contributed positively, with revenue increasing by 9 percent, driven by seasonal extensions and strength in its global direct-to-consumer channel.
Outlook and Forward Guidance
Looking ahead, Deckers Outdoor set ambitious targets for fiscal year 2027, projecting revenue in the range of $5.86 billion to $5.91 billion and a diluted EPS between $7.30 and $7.45.
The company also introduced a multi-year framework through fiscal year 2030, anticipating high single-digit annual revenue growth. This long-term growth is expected to be led by the HOKA brand, with projected low double-digit annual increases, while the UGG brand is forecast to grow at a mid-single-digit rate.
Despite the strong performance, the company noted potential risks including tariff headwinds, currency fluctuations, and ongoing supply chain pressures that could impact future profitability.
The strong guidance and multi-year growth targets signal management's confidence in the continued momentum of its key brands. Investors will be watching the company's ability to execute on its strategic initiatives and navigate macroeconomic challenges in the upcoming quarters, with the next earnings report expected in late summer.
This article is for informational purposes only and does not constitute investment advice.
