Deckers Outdoor (DECK 3.43%) has been a compelling investment story over the past decade, with its share price up more than 1,000% during that stretch. However, despite continued solid sales growth, the stock has largely been running in place this year and is down nearly 20% over the past year. It's also down more than half from its January 2025 highs.
Let's dig into the footwear company's latest results to see if now is the time to buy the stock.
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Deckers Outdoor still generates solid sales
Deckers has long been known for its popular Ugg boots, but a small $1.1 million acquisition in 2012 for Hoka One added a second powerful brand to its lineup. In fact, it is arguably one of the best-ever acquisitions in the footwear space. Meanwhile, both brands continue to see strong growth.
For its recently reported fiscal fourth quarter of 2026 (ending March 31), Deckers grew its sales by 9.6% year over year to $1.11 billion, while earnings per share (EPS) fell 4% to $0.96. That topped analysts' estimates for EPS of $0.83 on revenue of $1.09 billion.
Domestic sales edged up 0.3% to $649.8 million, while international sales surged 25.5% to $469.5 million. Direct-to-consumer revenue rose 13.2% to $464.4 million, with comparable sales up 8.2%. Wholesale revenue, meanwhile, rose by 7.1% to $654.9 million.
The results were driven by Deckers' commitment to Hoka's international expansion. It plans to open 20 to 25 stores annually moving forward and to continue building brand awareness in Europe and China. It also plans to selectively expand Hoka's wholesale distribution in both the U.S. and internationally, especially in sporting goods and athletic specialty retailers, where the brand is underpenetrated.
In the quarter, Hoka sales jumped 14.5% to $671.2 million. Ugg sales climbed 9.2% to $408.6 million, while its other brands' sales declined by 35.6% to $39.5 million. Note that Ugg is still the slightly larger brand for Deckers, as it gets the bulk of its sales before and around the holidays.
Looking ahead, Deckers projected full-year sales to grow by high single digits to between $5.86 billion and $5.91 billion, with Hoka sales rising in the low double digits. It expects gross margin to slide to 56.5% from 57.7% due to higher material and freight costs. It projected adjusted EPS of $7.30 to $7.45, up from $7.02 in fiscal year 2026. It's targeting 5% revenue growth in fiscal Q1, with Hoka sales up in the high single digits.
NYSE: DECK
Key Data Points
Is Deckers stock a buy?
Deckers isn't the same growth story it has been the past few years, as Hoka's growth has, not surprisingly, moderated. The brand grew its sales by nearly 58.5% in fiscal year 2023, 27.9% in fiscal 2024, 23.6% in fiscal 2025, and 15.9% in fiscal 2026. The low double-digit growth it is projecting for this fiscal year (2027) is a sign of a more mature growth brand.
While its growth has slowed, its valuation multiple has also come down, from a forward price-to-earnings (P/E) multiple of more than 20 to now only 14. While it's not the high-growth stock it was a year ago, it looks like a solid GARP (growth at a reasonable price) stock to add at these levels.
