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Premium Retail’s Stress Test Is Separating Winners From LosersDeckers Outdoor NYSE: DECK reported first-quarter fiscal 2027 revenue above $1 billion for the first time in company history, as growth in its HOKA and UGG brands and continued strength in direct-to-consumer sales helped offset planned wholesale timing shifts.

President and Chief Executive Officer Stefano Caroti said total company revenue rose 5.7% from a year earlier, while diluted earnings per share came in at $0.94. Both metrics were above the company’s expectations for the quarter. Total direct-to-consumer revenue increased 13%, led by a 17% gain at HOKA and a 6% increase at UGG.

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Apparel Earnings Winners and Losers: Ralph Lauren Takes Off“Both HOKA and UGG maintained solid momentum and continued to capture high level of full price consumer demand,” Caroti said. He added that underlying consumer demand remained strong both internationally and in the United States, despite what the company described as a pressured consumer backdrop.

HOKA Growth Led by DTC and Product Innovation HOKA generated first-quarter revenue of $704 million, up 8% from a year earlier. Caroti said the brand’s performance was driven by global direct-to-consumer growth, including continued gains across Europe, China, Japan and the United States.

Was Decker’s Double Beat a Bullish Signal—Or Mere HOKA’s-Pocus?Deckers said demand was broad-based across HOKA product families, with strength in established franchises such as Clifton and Bondi as well as newer and updated models. Caroti highlighted Speedgoat 7, Mach 7, Mafate Speed 2 and Skyward products as contributors to demand. He said trail and lifestyle styles together accounted for more than half of global HOKA direct-to-consumer growth in the quarter.

The company also pointed to the early launch of Clifton Pro as an important product milestone. Caroti said the shoe had been in the market for about two weeks and had already prompted some wholesale reorders. He said the Clifton Pro is part of a broader effort to create clearer technology and product architecture within HOKA, including “Glide” products designed for cushioning and “Fly” products focused on responsiveness and speed.

HOKA wholesale revenue increased 3% globally. Management said the wholesale result was in line with expectations and reflected international shipment timing differences compared with unusually early shipments in the prior year. In the U.S., HOKA delivered higher sell-in and stronger full-price sell-through, while EMEA posted what Caroti called “another quarterly record for reorders.”

UGG Advances Year-Round Strategy UGG revenue rose 5% year over year to $278 million, with direct-to-consumer revenue up 6% and wholesale up 5%. Caroti said the brand grew in both the U.S. and international markets, with international growth led by Asia.

Management said UGG’s results reflected progress in its “365” strategy and men’s growth initiatives. The company continued to allocate availability of key classic styles while increasing marketing and product investment in fashion-casual footwear, sneakers and sandals.

Caroti cited demand for the Lowmel franchise, the new Minimel introduction and the Golden Collection, including GoldenGaze silhouettes. He said the men’s business accounted for the largest portion of incremental UGG revenue in the quarter, supported by all-gender products such as Tasman and Lowmel as well as newer men’s products including the Ottosee clog.

In response to an analyst question, Caroti said UGG’s men’s business remains about 15% of revenue, with a goal of reaching 20% or more. He also said the brand is less dependent on cold weather than in the past because of a more diversified offering across sneakers, sandals, mules and other year-round products.

Margins Improve Despite Tariff Headwinds Chief Financial Officer Steve Fasching said total revenue for the quarter was $1.02 billion. Gross margin improved to 56.4%, up 60 basis points from 55.8% a year earlier.

Fasching said the margin improvement was driven by favorable channel mix as direct-to-consumer grew faster than wholesale, favorable product mix and full-price selling, foreign currency benefits and better management of product closeouts. These benefits were partially offset by tariffs.

In the question-and-answer session, Fasching said better management of closeouts contributed about 60 basis points to first-quarter gross margin, while full-price selling together with channel and brand mix contributed about 110 basis points. Foreign exchange added about 40 basis points, while tariffs reduced gross margin by about 150 basis points year over year.

SG&A expense rose 13% to $420 million, reflecting hiring, marketing investments, higher rent related primarily to global HOKA stores, technology spending and foreign currency remeasurement. Deckers ended the quarter with $1.6 billion in cash and equivalents, inventory down 5% year over year to $808 million and no outstanding borrowings.

The company repurchased approximately $338 million of shares during the quarter at an average price of $103.79. As of June 30, 2026, Deckers had about $4.7 billion remaining under its share repurchase authorization.

Guidance Raised on Earnings and Margin Deckers maintained its fiscal 2027 revenue outlook of $5.86 billion to $5.91 billion, representing high-single-digit growth from the prior year. The company still expects HOKA revenue to rise at a low-double-digit rate and UGG revenue to increase at a mid-single-digit rate.

However, Deckers raised its gross margin expectation to slightly better than 56.5%, citing first-quarter outperformance. The company also increased its assumed go-forward tariff rate to 12.5% from 10%. Fasching said Deckers continues to pursue tariff refunds related to an IEEPA ruling but has not included any refund assumptions in its guidance.

Operating margin is now expected to be slightly better than 21.5%, and diluted EPS is projected at $7.35 to $7.50, up $0.05 from the prior outlook. SG&A is still expected to be about 35% of revenue as the company continues investing in growth initiatives.

For the second quarter, Deckers expects consolidated revenue to rise about 5% year over year. Fasching said HOKA is expected to contribute high-single-digit growth, UGG is expected to maintain mid-single-digit growth, and other brands are expected to decline about 50%, primarily due to portfolio streamlining. Second-quarter diluted EPS is expected to range from $1.73 to $1.78.

Management reiterated that growth is expected to accelerate in the second half of the fiscal year, driven primarily by HOKA’s international wholesale and distributor business. Fasching said the timing shift reflects logistics changes rather than a change in demand assumptions.

Management Emphasizes Full-Price Marketplace Throughout the call, Deckers executives emphasized the importance of maintaining a premium, full-price marketplace. Caroti said inventories remain tight and that the company is focused on preserving a “pull model” of demand.

“Our full price sell-through continues to be strong,” Caroti said. “Inventories are tight. Inventories are down 5% for the quarter.”

Fasching said high gross margins support brand credibility and benefit retail partners. He added that Deckers has not assumed a significant change in promotional cadence for the rest of the year.

Caroti said the company remains confident in its fiscal 2027 outlook, citing product innovation, disciplined marketplace execution and continued engagement with HOKA and UGG across channels and geographies.

About Deckers Outdoor (NYSE:DECK)Deckers Outdoor Corporation is a global designer, marketer and distributor of footwear, apparel and accessories. The company's product portfolio includes well‐known brands such as UGG, HOKA, Teva, Sanuk and Koolaburra by UGG, spanning a range of lifestyle, performance and outdoor categories. Deckers leverages a blend of proprietary manufacturing, strategic brand storytelling and direct‐to‐consumer retail to serve both fashion‐focused and performance‐oriented customers.

Founded in 1973 by Doug Otto and Karl F.

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Wall Street analysts forecast that Deckers (DECK - Free Report) will report quarterly earnings of $0.88 per share in its upcoming release, pointing to a year-over-year decline of 5.4%. It is anticipated that revenues will amount to $1.02 billion, exhibiting an increase of 5.4% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some Deckers metrics that Wall Street analysts commonly model and monitor.

According to the collective judgment of analysts, 'Net Sales by brand- HOKA brand wholesale- Total' should come in at $705.84 million. The estimate indicates a year-over-year change of +8.1%.

Analysts predict that the 'Net Sales by brand- Other brands wholesale- Total' will reach $36.66 million. The estimate indicates a change of -20.8% from the prior-year quarter.

The average prediction of analysts places 'Net Sales by brand- UGG brand wholesale- Total' at $278.20 million. The estimate indicates a change of +4.9% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net Sales by brand- HOKA brand wholesale- Wholesale' will likely reach $465.60 million. The estimate points to a change of +7.2% from the year-ago quarter.

Analysts' assessment points toward 'Net Sales by channel- Total Wholesale' reaching $677.09 million. The estimate indicates a year-over-year change of +3.8%.

Analysts forecast 'Net Sales by brand- UGG brand wholesale- Direct-to-Consumer' to reach $82.57 million. The estimate indicates a year-over-year change of +4.2%.

The collective assessment of analysts points to an estimated 'Net Sales by channel- Direct-to-Consumer' of $327.80 million. The estimate suggests a change of +5% year over year.

The consensus estimate for 'Net Sales by brand- HOKA brand wholesale- Direct-to-Consumer' stands at $238.53 million. The estimate indicates a year-over-year change of +9%.

Analysts expect 'Net Sales by brand- UGG brand wholesale- Wholesale' to come in at $195.66 million. The estimate indicates a year-over-year change of +5.3%.

Based on the collective assessment of analysts, 'Net Sales by brand- Other brands wholesale- Direct-to-Consumer' should arrive at $10.07 million. The estimate indicates a year-over-year change of -28%.

The consensus among analysts is that 'Net Sales by location- International' will reach $512.38 million. The estimate indicates a change of +10.6% from the prior-year quarter.

It is projected by analysts that the 'Net Sales by location- Domestic' will reach $507.95 million. The estimate points to a change of +1.3% from the year-ago quarter.

View all Key Company Metrics for Deckers here>>>

Over the past month, shares of Deckers have returned -2.4% versus the Zacks S&P 500 composite's +0.6% change. Currently, DECK carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Deckers' international net sales rose 25.5% y/y in Q4, far ahead of 0.3% domestic growth.HOKA posted $2.6B in FY26 revenues, gaining share and awareness across global markets.Deckers plans brand, DTC and retail investments as overseas markets outpace the United States. Deckers Outdoor Corporation (DECK - Free Report) continues to benefit from accelerating international demand, with UGG and HOKA strengthening their positions across key global markets. In the fourth quarter of fiscal 2026, international net sales increased 25.5% year over year to $469.5 million, outpacing domestic growth of 0.3%, underscoring the company's expanding global footprint.

HOKA remains a major catalyst for international expansion. The performance footwear brand generated $2.6 billion in fiscal 2026 revenues, up 16% year over year, supported by robust global direct-to-consumer growth and ongoing wholesale momentum. HOKA became a top-three performance running brand in France, Italy and the U.K., while growing its premium brand presence in China through strong full-price performance across existing and new retail and partner locations. Brand awareness across international markets averaged approximately 40%, up from roughly 30% a year ago, reflecting growing consumer recognition across regions.

UGG delivered strong international results, with EMEA generating the highest incremental revenue increase among all markets. The brand broadened its appeal through sneakers, sandals and men's offerings, while the Lowmel franchise and Golden collection accounted for more than half of fiscal 2026 growth. The Auto clog delivered strong sell-through across global regions, particularly among new male consumers, contributing to broader consumer engagement across product categories.

To capitalize on this momentum, Deckers plans to continue investing in brand marketing, localized regional content, direct-to-consumer capabilities and selective retail expansion. Management expects international markets to grow faster than the United States over the long term, with HOKA projected to deliver low-double-digit annual growth and UGG anticipated to generate mid-single-digit gains through fiscal 2030.

With growing global branding awareness, expanding product portfolios and continued investments in international markets, UGG and HOKA remain well-positioned to support Deckers' long-term growth ambitions and strengthen the company's presence across the global footwear and lifestyle market.

DECK’s International Performance Compared With TPR & WWWTapestry, Inc. (TPR - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) are the key footwear companies competing with Deckers in the global arena.

Tapestry posted strong international growth in the third quarter of fiscal 2026, with Europe revenues rising 21% year over year and Greater China sales increasing 55% on a constant-currency basis. Growth was supported by strong customer acquisition, market share gains and broad-based demand across channels, while Other Asia revenues increased 16%, led by South Korea and Australia. Tapestry's direct-to-consumer model and targeted regional strategies continue to support efficient global expansion while deepening consumer engagement across key international markets.

Wolverine posted strong international growth in the first quarter of 2026, with international revenues rising 20.1% year over year to $249.6 million, or 12.8% on a constant-currency basis. Merrell and Saucony drove growth across the global markets, benefiting from strong sell-through, product innovation and targeted investments in key cities. Wolverine's diversified distribution network, spanning approximately 170 countries and territories, along with strategic partnerships across EMEA, the Asia-Pacific and Latin America, continues to support efficient global expansion and strengthen brand momentum.

DECK’s Price Performance, Valuation & EstimatesShares of Deckers have gained 1% over the past three months compared with the industry’s growth of 5.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, DECK trades at a trailing price-to-sales ratio of 2.57X, up from the industry’s average of 1.45X. It has a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Deckers’ fiscal 2027 earnings implies year-over-year growth of 6.1%, whereas the same for fiscal 2028 indicates an uptick of 10.6%. The estimates for fiscal 2027 and 2028 have been revised upward by 3 cents and 5 cents, respectively, over the past 30 days.

Image Source: Zacks Investment Research

DECK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.