HOKA Sales Surge Strengthens the Bull Case for Deckers Stock

Core Insights - Deckers Outdoors Corporation (DECK) has shown strong brand performance, particularly with its HOKA brand, which has driven recent quarterly results [1] Sales Performance - In Q2 of fiscal 2026, HOKA's net sales increased by 11.1% year over year, reaching $634.1 million compared to $570.9 million in the same period last year [1][9] - Overall net sales growth for Deckers was 9.1% [1] - HOKA's wholesale channel saw a 13% year-over-year increase, while Direct-to-consumer (DTC) sales grew by 8% [2][9] Growth Drivers - HOKA's revenue rose by 15% in the first half of the fiscal year, driven by its main road running franchises: Clifton, Bondi, and Arahi [3] - The brand's growth was further supported by expanded trail offerings through the Mafate franchise [3] - Strong sell-through rates and positive consumer response to product enhancements indicate ongoing demand for HOKA's innovative product lineup [3][5] International Performance - HOKA performed well across all international regions, with significant revenue growth in EMEA and China [4] - In EMEA, the brand achieved strong results supported by market share gains and robust reorder activity from specialty partners [4] Future Outlook - Despite anticipating a cautious consumer environment in the second half due to pricing and tariff impacts, HOKA's innovative product pipeline and international strength are expected to sustain its growth [5] - Deckers expects HOKA to be a key growth driver in fiscal 2026, with revenue projected to rise at a low-teens rate [5] Competitive Landscape - American Eagle Outfitters reported a 6% increase in net revenue to $1.36 billion in Q3 of fiscal 2025, with a gross profit rise of 5% [6] - Boot Barn Holdings posted an 18.7% year-over-year net sales growth to $505.4 million in Q2 of fiscal 2026, with gross profit increasing to 36.4% of net sales [7] Valuation Metrics - Deckers trades at a forward price-to-earnings ratio of 15.07, which is lower than the industry average of 18.06 [10] - The Zacks Consensus Estimate for Deckers' earnings implies year-over-year growth of 1.1% for the current fiscal year and 6.3% for the next [12]