Footwear and apparel conglomerate Deckers (NYSE: DECK) announced better-than-expected revenue in Q4 CY2025, with sales up 7.1% year on year to $1.96 billion. The company’s full-year revenue guidance of $5.41 billion at the midpoint came in 0.9% above analysts’ estimates. Its GAAP profit of $3.33 per share was 20.5% above analysts’ consensus estimates.

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StockStory’s Take

Deckers’ fourth-quarter results were met with a significant positive market reaction, as sales and earnings surpassed Wall Street’s expectations. Management attributed the quarter’s performance to strong global demand for both the HOKA and UGG brands, with balanced growth across direct-to-consumer and wholesale channels. CEO Stefano Caroti highlighted that effective inventory management and high levels of full-price selling supported margin stability, while new product launches in both brands drove consumer engagement. The company noted that its marketplace strategies and robust brand positioning enabled Deckers to “preserve strong gross margins, which contributed to an 11% increase in diluted earnings per share.”

Looking ahead, Deckers’ raised guidance is grounded in management’s confidence in sustained brand momentum, international expansion, and disciplined channel management. The company emphasized continued investments in product innovation, digital engagement, and targeted marketing, especially for HOKA’s growing lifestyle segment and UGG’s men’s and sneaker initiatives. CFO Steve Fasching cited ongoing growth from the HOKA membership program and further improvements in DTC performance as key levers, while also acknowledging potential tariff impacts and the need for strategic pricing actions. Management believes that “Deckers will continue to be a leader in our space” due to these combined efforts.

Key Insights from Management’s Remarks

Management cited robust demand for HOKA and UGG as primary drivers this quarter, with international markets and direct-to-consumer growth providing additional momentum.

• HOKA’s broad-based growth: The HOKA brand posted 18% revenue growth, attributed to successful product launches such as the Gaviota 6 and Cielo X1 3.0. Management noted that both direct-to-consumer and wholesale channels delivered double-digit gains, with the U.S. and international markets contributing meaningfully. HOKA’s new membership program also improved customer loyalty and increased multi-category purchasing.

• UGG’s channel and category balance: UGG delivered 5% revenue growth, with management highlighting effective collaboration with wholesale partners to address seasonal demand and strong performance in both retail and online direct-to-consumer channels. New silhouettes and category expansion—such as the Lowmel lifestyle sneaker—helped diversify the brand’s offering and supported growth in men’s and year-round products.

• Margin stability through pricing and inventory: Deckers maintained strong gross margins by leveraging disciplined pricing strategies and managing inventory flows to minimize promotional activity. CFO Steve Fasching noted that lower-than-expected tariff impacts and slightly reduced promotions aided margin outperformance for both brands.

• International expansion momentum: Both brands experienced accelerated growth in international markets, with HOKA particularly benefiting from increased brand awareness and expanded distribution in Europe and Asia. Management emphasized that there remains significant untapped potential, especially in European and Chinese retail channels.

• Strategic investments in digital and loyalty: Deckers invested in digital engagement initiatives, including e-commerce enhancements and loyalty programs, which drove higher revenue per consumer. Management views these programs as essential to building recurring customer relationships and supporting long-term brand health.

Drivers of Future Performance

Deckers expects continued growth based on international expansion, product innovation, and disciplined channel management, while monitoring external risks like tariffs.

• Product innovation and pipeline: Management is prioritizing new launches—such as HOKA’s Pinnacle racing shoe, the Cielo X1 3.0, and UGG’s Minimel sneaker—to capture emerging trends in both performance and lifestyle segments. The company believes that broadening its product range can drive greater market share and consumer engagement across multiple categories.

• DTC and digital strategy: Deckers aims to grow its higher-margin direct-to-consumer business through ongoing improvements in digital platforms, membership programs, and targeted marketing. Management sees these initiatives as key to increasing repeat purchases and customer lifetime value, particularly as consumer behavior shifts toward online and mobile shopping.

• Managing external headwinds: The company acknowledged ongoing risks from tariffs and macroeconomic uncertainty. While management expects pricing power and inventory management to offset some cost pressures, they remain cautious about potential changes in global trade policy and consumer sentiment, especially in the U.S. market.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be monitoring (1) the pace and breadth of international expansion for both HOKA and UGG, (2) the impact of new product launches and digital engagement initiatives on customer retention and sales mix, and (3) Deckers’ ability to offset tariff and cost headwinds through pricing and supply chain management. Execution in expanding DTC and loyalty programs will also be critical.

Deckers currently trades at $113.95, up from $99.90 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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