Will HOKA & UGG Momentum Fuel Another Strong Year for Deckers?

Core Insights - Deckers Outdoor Corporation's first-quarter fiscal 2026 performance was driven by strong demand for its flagship brands, HOKA and UGG, with HOKA's revenues increasing by 19.8% year over year to $653.1 million and UGG's revenues growing by 18.9% to $265.1 million [1][9] Brand Performance - HOKA maintained strong momentum with successful product launches, including the Arahi 8, and is expected to continue its growth trajectory with upcoming models such as Mafate 5 and Mach 3 [2] - UGG expanded its product offerings beyond cold-weather items, introducing versatile styles like the PeakMod clog and Lowmel sneaker, aligning with casual fashion trends [3] International Growth - Deckers reported a 49.7% year-over-year increase in international revenues in the first quarter, with both HOKA and UGG contributing significantly [4] Future Projections - For the second quarter of fiscal 2026, Deckers anticipates net sales between $1.38 billion and $1.42 billion, with HOKA expected to grow by 10% and UGG projected to increase in the mid-single digits [4][9] Competitive Landscape - Wolverine World Wide and Urban Outfitters are key competitors in the footwear market, with Wolverine's brands showing strong growth and Urban Outfitters' portfolio delivering positive performance [5][6][7] Valuation Metrics - Deckers shares have declined by 49.9% year to date, compared to a 12.6% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 15.77X, below the industry average of 17.64X, indicating a favorable valuation [11] Earnings Estimates - The Zacks Consensus Estimate for Deckers' fiscal 2026 earnings suggests a year-over-year decline of 1.1%, while fiscal 2027 estimates indicate an 8.3% increase [12]