New York, May 21, 2026, 18:06 (EDT)
Deckers Outdoor shares climbed in the session after the HOKA and UGG parent posted a quarterly beat Thursday. The stock jumped initially but gave up gains late as the market took stock of a forecast for lower margins this year.
The stock finished the session up roughly 4.5% at $102.70, and after the report it was still up 4.5% at $107.17, according to market data, but then slipped to about $100.56, off 2.1% from the regular close, by 6 p.m. Eastern.
Deckers is back in the spotlight as investors look for more growth from its premium footwear business. The company is guiding to fiscal 2027 sales between $5.86 billion and $5.91 billion, and per-share profit of $7.30 to $7.45. That’s above the consensus estimates of $5.82 billion and $7.34, according to Reuters using LSEG data.
Deckers reported fourth-quarter net sales up 9.6% to $1.119 billion. HOKA revenue jumped 14.5% to $671.2 million, with UGG sales up 9.2% to $408.6 million. Direct-to-consumer sales increased 13.2%. Wholesale to retailers rose 7.1%.
Stefano Caroti, chief executive, said fiscal 2026 was “another record year,” citing “continued momentum of HOKA” and the “enduring strength of UGG.” Full-year revenue climbed 9.8% to $5.472 billion. Diluted per-share earnings rose 11% to $7.02. Deckers Outdoor Corporation
Deckers showed cleaner sales, but margins got attention. Gross margin hit 57.6% in the fourth quarter, up from 56.7% a year ago. But the company guided for fiscal 2027 gross margin of about 56.5%, and said it sees operating margin around 21.5%.
Deckers pushed further into capital returns. The board approved another $3.5 billion for share buybacks, bringing the authorization to about $5 billion. That follows about $1.075 billion in repurchases in fiscal 2026. Buybacks cut the share count, which can lift per-share earnings, but only if actually done.
Deckers CFO Steve Fasching said the company pulled in “over one billion dollars of free cash flow,” cash remaining after operations and capex. The company’s fiscal 2027 profit outlook is based on buying back shares equal to roughly 80% of expected free cash flow. Deckers Outdoor Corporation
Piper Sandler’s Anna Andreeva upgraded Deckers to Neutral from Underweight this week, bumping the price target to $100. After the recent slide, Piper called the shares “not expensive,” according to The Fly via TipRanks. But the firm still likes On Holding better in athletic shoes, pointing to more competition in sneakers. Sahm
But risks remain. Deckers said its forecast depends on consumer confidence, spending, inflation, FX, tariffs, trade restrictions and possible supply-chain trouble. The company also said it is not counting on tariff refunds. Reuters pointed out Deckers’ big exposure to Vietnam manufacturing, keeping trade policy a watch point.
Other brands keep weighing on results. Sales for everything outside HOKA and UGG dropped 35.6% in the quarter. Management pointed to winding down Koolaburra’s standalone stores and selling Sanuk as the major reasons. At this point, the company is leaning on HOKA and UGG. The stock slipped after hours as investors looked for more evidence that sales can keep rising without squeezing margins too much.
