Deckers' International Segment Emerges as Key Growth Engine in FY26

Core Insights - Deckers Outdoor Corporation's international segment is a key growth driver, significantly outpacing domestic growth in the first half of fiscal 2026, reflecting strong demand for HOKA and UGG brands globally [1][5] International Growth Strategy - The company employs a balanced channel strategy, with wholesale as the primary entry point in new markets and direct-to-consumer (DTC) enhancing long-term customer engagement, aiming for a 50:50 mix between wholesale and DTC [2] - International wholesale expansion has been more pronounced than in the U.S., indicating stronger brand momentum abroad [2] Regional Performance - In EMEA, HOKA achieved double-digit growth in multiple countries during Q2 of fiscal 2026, supported by strong sell-through with specialty retailers and increased market share [3] - China presents a significant opportunity, driven by premium positioning and innovation, with strong full-price selling and expanding loyalty membership, particularly among younger and female consumers [4] Future Outlook - Deckers anticipates that international markets will continue to outpace U.S. growth in fiscal 2026, contributing to a long-term revenue target of $5.35 billion, supported by disciplined distribution and strong brand equity [5] Valuation and Performance - Deckers shares have decreased by 2.9% over the past three months, while the industry has grown by 9.9% [6] - The company trades at a forward price-to-earnings ratio of 14.38X, slightly below the industry's average of 16.11X [8] - The Zacks Consensus Estimate for current fiscal-year earnings indicates a year-over-year growth of 1.3%, with an expected uptick of 7.3% for the next fiscal year [11]