Deckers Earnings Beat, Raises FY27 Outlook

Deckers Brands reported on May 21, 2026 that its results topped estimates, a Deckers earnings beat that accompanied record fiscal 2026 performance and an upgraded FY27 outlook anchored in continued HOKA and UGG demand.

Quarter and Annual Results

The company’s fiscal year ended March 31, 2026. For the fourth quarter, Deckers reported net sales of $1.12 billion, a 9.6% increase from a year earlier (7.7% on a constant-currency basis), and GAAP diluted earnings per share of $0.96. Revenue exceeded the consensus estimate of $1.09 billion. For the full year, Deckers posted record net sales of $5.47 billion and diluted EPS of $7.02. Gross profit was $3.16 billion, with a gross margin of 57.7%. Net income for the quarter was $135.6 million.

Brand Momentum and Liquidity

HOKA growth continued to drive results. HOKA net sales in the quarter reached $671.2 million, up 14.5% year over year, while the brand climbed 16% for the full fiscal year. UGG sales rose 9.2% to $408.6 million in the quarter. Other brands declined 35.6% to $39.5 million. Direct-to-consumer net sales increased 13.2% to $464.4 million, and wholesale net sales rose 7.1% to $654.9 million.

Inventories at the end of the period stood at $487 million, and cash and cash equivalents totaled approximately $1.91 billion.

Guidance and Multi-Year Plan

Deckers forecast fiscal 2027 net sales between $5.86 billion and $5.91 billion and full-year EPS of $7.30 to $7.45. Management expects HOKA to deliver low double-digit revenue growth and UGG mid-single-digit growth next year. The company anticipates gross margin will be slightly below the prior year due to margin adjustments, while EPS expands through revenue growth and operating leverage.

The company outlined a multi-year framework through fiscal 2030 targeting high single-digit annual revenue growth and operating margin expansion above FY26 levels. This will be achieved by shifting the sales mix toward higher-margin direct-to-consumer channels, investing in product innovation, and maintaining cost discipline. Management emphasized priorities including scaling HOKA globally, sustaining UGG’s premium positioning, increasing direct-to-consumer and international penetration, and continuing investment in marketing and product innovation.

“Our focus on brand building, product innovation and category leadership, along with marketplace execution continues to drive full-price demand across an expanding global consumer base,” the company said. Management also noted risks from consumer-demand normalization, increased competition, and potential margin pressure from cost and foreign-exchange factors.