Deckers Brands closed the first fiscal quarter with results exceeding expectations, recording revenues of $1.02 billion and earnings per share of $0.94. Despite the positive performance and the increase in full-year earnings guidance, the stock lost about 4% on the stock exchange, indicating that investors’ attention is mainly focused on the performance of HOKA, the brand that has been the main growth driver for the group in recent years.
The role of HOKA
In the quarter, HOKA recorded revenues of $703.5 million, up 7.7% compared to the same period last year. Although the result is positive, it represents a slowdown compared to the double-digit growth rates recorded in recent quarters, fueling market doubts about the brand’s ability to maintain its momentum.
According to Stefano Caroti, president and CEO of Deckers Brands, the slowdown does not reflect weakened demand, but is mainly related to a different distribution of wholesale orders across quarters. Last year, the opening of a new logistics center in Europe had led to anticipating numerous shipments to international distributors and retailers. This year, with the warehouse now fully operational, orders are returning to a more regular schedule, shifting some of the growth to the second half of the fiscal year. For this reason, the company continues to forecast double-digit growth for HOKA , confirming the guidance already communicated.
Deckers has reiterated several times that the demand for HOKA remains high, emphasizing how the brand continues to record strong full-price sales, low inventory levels, and an increasing number of reorders from retailers.
Direct-to-consumer strategy
The brand’s growth has been mainly driven by the direct-to-consumer channel, which includes mono-brand stores and e-commerce, increased by 17% thanks to good performance in Europe, the United States, China, and Japan. The wholesale channel, on the other hand, grew by 3%, penalized precisely by the different schedule of international shipments.
On the product front, Deckers has highlighted how growth does not depend solely on the historical models Clifton and Bondi, which continue to experience high demand, but also on the success of new offerings. Speedgoat 7 has received excellent feedback in key markets, while Mach 7, Mafate Speed 2, and Skyward have significantly contributed to the growth of the DTC channel. The debut of the Clifton Pro has also been particularly encouraging, launched a few weeks before the results were published and already subject to reorders from retailers. Expectations are also positive for the Mach Pro, expected in spring 2027.
Future strategy
Looking ahead to the coming months, the company aims to further expand the assortment, strengthening its presence in the lifestyle segment with models like Cielo 70, Clifton L, and Fly Pace. The goal is to reach new consumers and new distribution channels without losing the technical positioning that has made HOKA one of the most appreciated brands in running and trail running.
