Deckers Outdoor Corporation DECK is leaning on the continued strength of HOKA and UGG to sustain its growth trajectory. Both brands are benefiting from product innovation, disciplined marketplace management and strong full-price demand across regions and channels. Management highlighted cleaner inventories, pricing integrity and a widening product pipeline as key supports for long-term brand health, even against a pressured consumer backdrop.
The momentum was visible in first-quarter fiscal 2027 results. HOKA sales rose 7.7% year over year to $703.5 million, while UGG advanced 4.9% to $278 million. Companywide revenues increased 5.7% to $1.02 billion, marking Deckers’ first-ever billion-dollar first quarter. Direct-to-consumer ("DTC") sales climbed 13%, outpacing wholesale growth of 2.2%.
HOKA’s gains were broad-based, with global DTC revenues rising 17%. Alongside continued strength in Clifton and Bondi, Speedgoat 7, Mach 7, Mafate Speed 2 and Skyward supported full-price demand. Management noted that these models collectively generated more than half of HOKA’s global DTC growth. Early demand for the newly launched Clifton Pro was encouraging, with some wholesale accounts already placing reorders.
UGG maintained momentum across channels, with DTC and wholesale revenues up 6% and 5%, respectively. International markets, particularly Asia, led growth. The brand’s 365 and men’s initiatives gained traction, while Lowmel and Golden products supported a favorable shift toward fashion-casual footwear, sneakers and sandals. Men’s products accounted for the largest share of UGG’s incremental revenues.
This brand momentum is supporting Deckers’ outlook. The company continues to expect low-double-digit HOKA growth and mid-single-digit UGG growth for fiscal 2027. With gross margin projected slightly above 56.5% and EPS guidance raised to $7.35-$7.50, sustained full-price demand and product newness remain central to Deckers’ growth narrative.
DECK’s Price Performance, Valuation & Estimates
Shares of Deckers have lost 17.5% over the past three months compared with the industry’s 3.9% decline.
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From a valuation standpoint, DECK trades at a trailing price-to-sales ratio of 1.96, up from the industry’s average of 1.30. It has a Value Score of B.
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The Zacks Consensus Estimate for Deckers’ fiscal 2027 earnings implies year-over-year growth of 6.8%, whereas the same for fiscal 2028 indicates an uptick of 10.9%. The estimates for fiscal 2027 and 2028 have been revised upward by 2 cents each over the past 60 days.
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DECK currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. Genesco flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates 62.1% growth from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. Designer Brands currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales implies growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales indicates growth of 14% and 9.5%, respectively, from the year-ago actuals. Urban Outfitters delivered a trailing four-quarter average earnings surprise of 9.7%.
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Deckers Outdoor Corporation (DECK): Free Stock Analysis Report
Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
Genesco Inc. (GCO): Free Stock Analysis Report
Designer Brands Inc. (DBI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).