Deckers soars on strong international demand for Hoka and Ugg
Hoka just posted the biggest quarter in its history.
Deckers Outdoor is up as much as 13% in early trading Friday after the footwear maker posted stronger-than-expected Q1 results.
Revenue rose 17% from a year ago to $964.5 million, beating the $901.1 million analysts estimated. Earnings per share came in at $0.93, handily exceeding the $0.68 expected, per LSEG — powered by strong overseas demand for Deckers’ two biggest brands.
Ugg, best known for its sheepskin boots, posted a 19% sales gain, while Hoka, Deckers’ breakout running shoe brand, jumped 20%, marking its “largest quarter in history.” It’s expected to remain the company’s “fastest-growing” brand this year, according to CEO Stefano Caroti.
Yesterday’s upbeat report follows a steep 48% decline in Deckers shares year to date, including a sharp dip in May when the company pulled its annual forecast, citing tariff-driven “macroeconomic uncertainty.” Deckers still offered guidance only for the next quarter, though it came in line with analyst consensus.
Strong demand from Europe and China was a major Q1 growth engine, with international sales soaring nearly 50% — more than offsetting a 2.8% drop in domestic sales amid a “choppy US consumer environment,” Caroti said.
To absorb higher import costs, Deckers raised prices on some Hoka models starting July 1. But so far, there’s been no “material” impact on demand, with the company expecting Hoka sales to rise ~10% and Ugg to grow “at least mid-single digits” in the current quarter, CFO Steven Fasching said.
