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Research Alert: Deckers Outdoor Brands Beats Estimates On Hoka And Ugg Strength

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

DECK posted Q4 FY 26 EPS of $0.96 vs. $1.00 in the prior year, $0.13 above consensus estimates on revenues of $1.119B vs. $1.02B (up 9.6%) and $34M above estimates. HOKA revenues increased 14.5% to $671.2M, while UGG increased 9.2% to $408.6M, though operating margin compressed 300 bps to 14.0% due to SG&A expenses jumping 20.2% as gross margin expanded 90 bps. We are excited to see the progress internationally, with international sales surging 25.5%, which should help insulate DECK from higher U.S. tariffs, and we view the company as a top pick in the footwear space. DECK initiated FY 27 guidance, with revenue growth in the high-single-digit percentages and EPS between $7.30 and $7.45, slightly above consensus of $7.34. The company continues to see strong growth for HOKA and UGG brands globally. With shares trading under 15x its FY 27 EPS guidance, we believe DECK offers compelling value, as both brands maintain strong momentum despite challenging retail conditions.

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