Deckers Outdoor Corporation reported a strong fiscal year 2026, achieving total revenue of $5.47 billion, a 10% increase driven by robust performances from its HOKA and UGG brands. HOKA led the charge with a 16% revenue growth to $2.59 billion, while UGG saw an 8% rise to $2.74 billion. The fourth quarter alone brought in $1.12 billion, reflecting a 10% increase year-over-year, showcasing the brands’ ability to maintain momentum despite external pressures like tariffs.
The company’s gross margin for the year was 57.7%, slightly down due to tariff impacts, but operating margins remained strong at 23.1%. Management’s outlook for fiscal 2027 anticipates revenue growth of high single digits, with continued emphasis on expanding both direct-to-consumer and wholesale channels globally. Notably, Deckers plans to allocate at least 80% of free cash flow to share repurchases, indicating a commitment to enhancing shareholder value.
For market professionals, Deckers’ disciplined inventory management and strategic focus on brand expansion signal potential resilience in a challenging macroeconomic environment, making it a company to watch as it navigates ongoing tariff impacts and rising costs.
Source: fool.com