Hoka and Ugg drive Deckers Brands to 5.47 billion dollars in FY26 net sales

US footwear group Deckers Brands has announced its financial results for the fourth fiscal quarter and full fiscal year ended March 31, 2026, delivering record revenue driven by the ongoing momentum of Hoka and Ugg.

For the full fiscal year 2026, net sales increased 9.8 percent to 5.47 billion dollars compared to 4.99 billion dollars in the prior year. On a constant currency basis, net sales experienced a 9 percent increase. Net income also rose, with diluted earnings per share increasing to 7.02 dollars compared to 6.33 dollars in fiscal year 2025.

“Fiscal 2026 was another record year for Deckers, with revenue and earnings growth powered by the continued momentum of HOKA and the enduring strength of UGG,” said Stefano Caroti, president and chief executive officer in a statement.

Brand performance led by Hoka and Ugg

Brand division results highlighted a strong year for key labels. Net sales for the Hoka brand increased 15.9 percent to 2.59 billion dollars compared to 2.23 billion dollars in the prior fiscal year. Ugg net sales grew 8.2 percent to 2.74 billion dollars against 2.53 billion dollars previously. Meanwhile, other brands within the portfolio saw net sales decrease 33.9 percent to 146.20 million dollars compared to 221.20 million dollars, primarily driven by the phase-out of Koolaburra standalone operations and the sale of Sanuk.

In terms of distribution channels, wholesale net sales increased 12.3 percent to 3.21 billion dollars compared to 2.86 billion dollars. Direct-to-consumer net sales rose 6.3 percent to 2.26 billion dollars from 2.13 billion dollars, while D2C comparable net sales increased 4.6 percent.

Geographically, domestic net sales in the US remained flat with a 0.2 percent increase to 3.19 billion dollars. Conversely, international net sales grew significantly by 26.8 percent to 2.28 billion dollars compared to 1.80 billion dollars in the previous fiscal year. Gross margin for the full year stood at 57.7 percent compared to 57.9 percent, while operating income reached 1.26 billion dollars, up from 1.18 billion dollars.

"Our financial fortitude and strong operating model continue to fuel our category leading brands, driving high-quality growth and supporting focused investments in our long-term opportunities," US group chief financial officer Steve Fasching stated in a press release.

Fourth quarter net sales rise nearly 10 percent

During the fourth fiscal quarter, net sales increased 9.6 percent to 1.12 billion dollars compared to 1.02 billion dollars for the same period last year. On a constant currency basis, net sales grew 7.7 percent.

Hoka net sales for the quarter increased 14.5 percent to 671.20 million dollars, and Ugg net sales grew 9.2 percent to 408.60 million dollars. Other brands decreased 35.6 percent to 39.50 million dollars. Wholesalers drove revenue up 7.1 percent to 654.90 million dollars, while D2C channels advanced 13.2 percent to 464.40 million dollars, with D2C comparable net sales up 8.2 percent.

International regions remained the growth driver in the fourth quarter, climbing 25.5 percent to 469.50 million dollars, whereas US domestic sales edged up 0.3 percent to 649.80 million dollars. Fourth quarter operating income was 156.70 million dollars compared to 173.90 million dollars, and diluted earnings per share decreased slightly to 0.96 dollars compared to one dollar in the prior year period.

Outlook for fiscal year 2027 and multi-year framework

For the 12 month period ending March 31, 2027, consolidated net sales are projected to be in the range of 5.86 billion dollars to 5.91 billion dollars. Hoka net sales are expected to increase by a low-double-digit percentage, while Ugg is anticipated to grow by a mid-single-digit percentage. Gross margin is forecasted at approximately 56.5 percent, with operating margin expected at around 21.5 percent. Diluted earnings per share is projected between 7.30 dollars and 7.45 dollars.

Looking further ahead, the group outlined a multi-year financial framework for the fiscal years ending March 31, 2028 through March 31, 2030. The company expects consolidated net sales to increase by high-single-digit percentages annually, supported by low-double-digit growth at Hoka and mid-single-digit growth at Ugg. Operating margin is expected to be maintained in the low 20 percent range, with a continued share repurchase program driving low-double-digit diluted earnings per share growth.