Deckers Brands stunned investors with a fourth-quarter revenue increase of 22% year-over-year, driven by double-digit growth in its HOKA and UGG franchises. The company reported a non-GAAP operating margin expansion of 180 basis points to 20.5%, reflecting strong wholesale sell-through and disciplined inventory management. Gross profit rose to 58.7% of net sales, up from 56.1% in the prior year, as Deckers leveraged higher factory utilization and price increases. Management raised its full-year guidance, projecting low-double-digit revenue growth and operating margin improvement of 100–150 basis points, a material upgrade from its prior outlook.

Building on the momentum of its fastest-growing brand, Deckers’ HOKA division launched the Speedgoat 7, featuring a super-critical foamed EVA midsole for 8% greater energy return and an updated Vibram Megagrip outsole with 5 mm lugs for enhanced traction. The new model includes an integrated gaiter attachment and weighs just 8.3 oz for women’s size 8 and 9.7 oz for men’s size 10. HOKA’s senior director of performance footwear highlighted that the Speedgoat franchise has grown annual unit volumes by 45% over the past two years, and expects the Speedgoat 7 to capture an additional 200 basis points of share in the specialty running segment.

Deckers accelerated its share repurchase program, buying back $150 million of stock in the quarter, representing 2% of its market capitalization. On a per-share basis, earnings increased by 11%, outpacing net income growth. Specialty channel sell-in for HOKA and UGG rose by 18% and 12% respectively, indicating continued consumer demand. Analysts have upgraded their ratings, noting that Deckers’ low valuation multiple fails to reflect its mid-teens return on invested capital and high-teens free cash flow yield. With 70% of sales generated outside North America, international expansion remains a key growth lever.