In the full fiscal year ended 31 March 2026, Hoka posted a 15.9% rise in net sales to $2.59bn, while Ugg’s net sales rose 8.2% to $2.74bn.
Other brands saw net sales fall 33.9% to $146.2m, a change attributed to the phase-out of Koolaburra operations and the sale of Sanuk.
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International markets contributed notably to the overall growth, with sales up 26.8% to $2.28bn, while sales in the domestic market were at $3.19bn.
The company’s operating income was $1.26bn, up from $1.18bn a year earlier. This translated to diluted earnings per share totalled $7.02, compared to $6.33 in the prior period.
Its gross margin for the fiscal year reached 57.7%, down slightly from 57.9% last year, and selling, general and administrative expenses increased to $1.89bn from $1.71bn.
Deckers Brands president and chief executive officer Stefano Caroti said: “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.
“Our focus on brand building, product innovation and category leadership, along with marketplace execution, continues to drive full-price demand across an expanding global audience, underscoring the long-term potential of our portfolio. We are confident in our ability to deliver compelling value for years to come, further reinforcing our competitive posture as an industry leader.”
Deckers Brands’ overall performance in Q4
In the fourth quarter (Q4), the company’s net sales rose 9.6% to $1.12bn, with sales in Hoka and Ugg up 14.5% and 9.2% respectively.
Gross margin for the quarter was up from 56.7% to 57.6% in Q4 FY26.
Deckers Brands’ operating income reached $156.7m in Q4 FY26, down from $173.9m, while diluted earnings per share decreased to $0.96 from $1.00.
Forecast for FY27
For fiscal year 2027, Deckers Brands forecasts consolidated net sales in the range of $5.86bn to $5.91bn.
Sales in Hoka are projected to grow by a low-double-digit percentage over the prior year, while Ugg is forecast to post a mid-single-digit percentage increase.
The company projects a gross margin of about 56.5%, selling, general and administrative expenses at around 35% of net sales, and an operating margin of 21.5%.
Looking ahead to fiscal years 2028 through 2030, Deckers Brands targets high-single-digit annual increases in net consolidated sales, with Hoka growing by low-double-digit percentages and Ugg by mid-single digits.
The company plans to maintain its operating margin in the low-20% range and achieve low-double-digit growth in diluted earnings per share with the ongoing share repurchase programme.
