Hoka and Ugg continued to boost Deckers Brands in the first quarter, leading the company to beat earnings expectations.
The Goleta, Calif.-based company reported that net sales in the first quarter of fiscal 2027 increased 5.7 percent to $1.02 billion compared to $964.5 million the same time last year. Net income for the first quarter was $129.97 million, or 94 cents per diluted share, down from $139.20 million, or 93 cents per diluted share, the prior year.
Net sales were in line with analysts’ expectations, which called for net sales in Q1 to be in the range of $1.01 billion to $1.03 billion, with diluted earnings per share beating the Street’s best bet, with expected EPS to be in the range of 83 cents to 92 cents, according to Yahoo Finance.
By brand, Hoka led the way with net sales of $703.5 million, a 7.7 percent increase compared to $653.1 million the same time last year. At Ugg, net sales increased 4.9 percent to $278.0 million compared to $265.1 million last Q1.
Deckers’ “Other” brands division — which includes the Teva brand — saw net sales decrease 18.1 percent to $37.9 million compared to $46.3 million.
As for wholesale, Deckers said that net sales in the channel increased 2.2 percent to $666.7 million compared to $652.4 million, while the direct-to-consumer channel saw net sales rise 13.0 percent to $352.8 million compared to $312.2 million the same time last year.
By region, the company noted that net sales domestically increased 3.2 percent to $517.4 million compared to $501.3 million in Q1 2026. International net sales in the period increased 8.4 percent to $502.1 million compared to $463.3 million.
The company noted that net sales for the respective “Other” brands, wholesale channel and domestic geography include current fiscal year declines related to the phase-out of Koolaburra brand standalone operations.
Stefano Caroti, president and chief executive officer of Deckers Brands, said in a statement on Thursday that the company “delivered a solid start” to the fiscal year, surpassing $1 billion of first quarter revenue for the first time.
“This performance reflects the continued strength of Hoka and Ugg, with growing global demand as both brands extend their reach through compelling product innovation,” Caroti noted. “As we build deeper connections with consumers across geographies and channels, we remain focused on advancing our premium brands and executing with discipline against our long-term strategies.”
Looking ahead, the company kept its yearly guidance for net sales between $5.86 billion to $5.91 billion for fiscal 2027. However, Deckers raised its expectations for diluted earnings per share for the year, which is now expected to be in the range of $7.35 to $7.50, reflecting an increase of five cents versus the prior outlook. The previous outlook called for earnings per share between $7.30 and $7.45.
