Deckers (DECK.N), the parent of Hoka, reported better than expected first-quarter earnings on the strength of increased demand from China and Europe, the company announced on Thursday.
Shares of the company surged 11 percent following the news and Deckers noted that its Hoka and UGG brands surpassed projections, as revenue soared to $965 million, ahead of the $900.3 million outlook.
“Hoka and UGG outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026,” Stefano Caroti, Deckers president and Chief Executive Officer said in a statement. “Though uncertainty remains elevated in the global trade environment, our confidence in our brands has not changed, and the long-term opportunities ahead are significant. We will lean on the fundamental strengths of our powerful operating model as we continue executing our strategy.”
Deckers also reported its Q1 FY26 earnings per share of $0.93, which easily outpaced the $0.68 of analysts predictions.
According to Deckers, Hoka led the charge as net sales increased 19.8 percent to $653.1 million compared to $545.2 million at the same time last year. UGG saw its own moment in the spotlight with a 18.9 percent net sales boost to $265.1 million in contrast to to $223.0 million from 2024.
Other brands under the Deckers umbrella dipped 19 percent in net sales to $46.3 million compared to $57.2 million last year as wholesale net sales increased 26.7 percent to $652.4 million compared to $514.8 million at the same period in 2024.
For Hoka, the spike in sales outside of the United States is a noticeable warning shot as the brand navigates previously untapped markets like China and Europe that have long been staples of powerhouses Nike and Adidas. The brand has proven that its opportunities on the global stage are viable beyond 2025.
Meanwhile, Deckers gave a glimpse of second-quarter net sales an expected $1.38 billion to $1.42 billion with earnings per share likely between $1.50 to $1.55.
A $185 million rise in costs of goods sold in fiscal year 2026 were high than the $150 million it predicted in May after enduring a 20 percent tariff on materials from Vietnam.
The company reiterated that unpredictability stemming from global trade circumstances will be an ongoing factor and strategic price increases will be implemented for the rest of the year.
