Core Insights - HOKA has become a frequent presence in the shoe cabinets of Chinese middle-class consumers, experiencing rapid growth since being acquired by Deckers Brands in 2013 [1] - The company reported its best-ever quarterly performance for HOKA, but the growth rate is showing signs of decline [1][4] Financial Performance - Deckers Brands achieved revenue of $965 million in Q1 2026, a year-over-year increase of 16.9%, with a gross margin of 55.8% [2] - HOKA's net sales grew by 19.8% to $653.1 million, compared to $545.2 million in the same period last year [2] - UGG also performed well, with net sales increasing by 18.9% to $265.1 million [2] Regional Growth - The EMEA region was a key growth driver, with record replenishment volumes in wholesale and steady growth in DTC channels [3] - The APAC region showed impressive growth, with HOKA expanding its market presence through partnerships and self-operated retail stores in China [3] Growth Rate Decline - HOKA's growth rate has slowed, dropping from 29.7% in Q1 2025 to 19.8% in Q1 2026, indicating a nearly 10 percentage point decline [4] - Overall net sales growth for Deckers Brands also decreased from 22.1% to 16.9% in the same timeframe [4] Competitive Landscape - HOKA faces intensified competition in the high-performance running shoe market, particularly from Brooks in the U.S. and local competitor Kailas in China [5] - Brooks reported a 15% increase in global revenue, while HOKA's growth in the U.S. is slowing [5] - Kailas dominates the domestic market with a 34.8% share in trail running shoes, while HOKA holds 24.6% [5] Future Outlook - For Q2 2026, Deckers Brands expects net sales between $1.38 billion and $1.42 billion, with diluted earnings per share projected between $1.50 and $1.55 [6] - The outlook is contingent on the stability of business conditions and potential macroeconomic uncertainties [6]