Deckers shares surge 11% on Q1 beat driven by strong HOKA and UGG sales

Published 24/07/2025, 21:30
Updated 25/07/2025, 10:20

Investing.com -- Deckers Brands reported stronger-than-expected first-quarter earnings, driven by strong demand for its HOKA and UGG brands, sending its shares more than 11% higher in premarket trading Friday.

Yet, the company issued a revenue forecast for the current quarter that came in below estimates.

The maker of lifestyle and performance footwear reported Q1 FY26 earnings per share of $0.93, well ahead of the $0.68 analysts had expected.

Revenue rose to $965 million, beating the $900.3 million consensus.

“HOKA and UGG outperformed our first quarter expectations, with robust growth delivering solid results to begin fiscal year 2026,” said CEO Stefano Caroti.

CEO added that while global trade uncertainty persists, the company was confident in its brand strength and long-term growth.

"DECK remains one of the highest quality businesses and financial models in the sector," TD Cowen analysts said in a post-earnings note. The team raised its estimates on the stock and lifted the price target to $154 from $147.

For the second quarter, Deckers projected EPS between $1.50 and $1.55, ahead of analysts’ $1.40 estimate.

However, it guided Q2 revenue in the range of $1.38 billion to $1.42 billion, which was below the $1.51 billion consensus.

Deckers said it has nominated Patrick Grismer, a former CFO of Starbucks (NASDAQ:SBUX) and Hyatt, to its board ahead of its annual shareholder meeting in September. Longtime director Dave Powers will not stand for reelection.

(Additional reporting by Vahid Karaahmetovic.)

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