Deckers Outdoor Corporation

Deckers Brands reported net sales of $1.02 billion for the first quarter of fiscal year 2027, marking the first time the company has exceeded $1 billion in quarterly revenue. HOKA sales rose 7.7% to $703.5 million, while UGG grew 4.9% to $278 million. Direct-to-consumer revenue increased 13% to $352.8 million, and wholesale revenue was up 2.2% to $666.7 million. The company raised its full-year diluted earnings per share guidance to a range of $7.35 to $7.50 and now expects gross margin slightly above 56.5%.

Deckers Outdoor Corp reported first-quarter revenue of $1.02 billion, the first time quarterly sales have crossed the billion-dollar mark, up 5.7% year-over-year. HOKA brand revenue rose 8% to $704 million, while UGG revenue increased 5% to $278 million. Gross margin expanded 60 basis points to 56.4%, and diluted earnings per share edged up to $0.94 from $0.93 a year earlier. The company raised its fiscal 2027 revenue guidance to a range of $5.86 billion to $5.91 billion, implying high single-digit growth, and expects gross margin slightly above 56.5% with diluted EPS of $7.35 to $7.50. Direct-to-consumer channel sales grew 13%, and the company repurchased approximately $338 million of its shares during the quarter.

U.S.-listed shares of SK Hynix tumbled 8% in premarket trading after their Nasdaq debut on Friday, when they popped nearly 13%, while Seoul-listed shares of the South Korean chipmaker sank more than 15% in their worst day ever. Memory and chip stocks broadly fell as investors reassessed the artificial intelligence trade, with the Roundhill Memory ETF off 9%, Sandisk down 5.5%, and Western Digital and Micron Technology each off 5%, while the iShares Semiconductor ETF lost 2% and Intel and Advanced Micro Devices declined more than 2.5% and 2%, respectively. CCC Intelligent Solutions rose 2% after Bloomberg reported Elliott Investment Management built a large stake before the software company began sale talks. MGM Resorts International gained more than 2% following a Wall Street Journal report that it is in private talks with Barry Diller, whose People Inc made an offer in early June that MGM has not publicly addressed. Energy stocks advanced as oil prices rose more than 3% after weekend U.S.-Iran strikes, with Valero Energy up 1.5%, ConocoPhillips up 1%, APA Corporation up 2%, and ExxonMobil and Chevron up 1%. Fastenal added 1% after Rothschild & Co Redburn initiated coverage with a buy rating, citing a shift toward larger customers. Shopify and Deckers Outdoor Group both rose after Jefferies upgraded them to buy, with Shopify up 2.5% on strong fundamentals and agentic commerce tailwinds, and Deckers up 2% on Hoka product innovation upside.

Deckers Outdoor Corporation reported a 25.5% year-over-year increase in international net sales to $469.5 million in the fourth quarter of fiscal 2026, far outpacing domestic growth of 0.3%. HOKA generated $2.6 billion in fiscal 2026 revenues, up 16%, and became a top-three performance running brand in France, Italy and the U.K., while brand awareness across international markets rose to approximately 40% from roughly 30% a year ago. UGG's EMEA region delivered the highest incremental revenue increase among all markets, with the Lowmel franchise and Golden collection accounting for more than half of fiscal 2026 growth. Management expects international markets to grow faster than the United States over the long term, with HOKA projected to deliver low-double-digit annual growth and UGG anticipated to generate mid-single-digit gains through fiscal 2030.

Crocs reported first-quarter revenues of $921.5 million, a 1.7% decline year on year, yet exceeded analyst expectations by 2.1%. The company also beat earnings per share estimates, though its EPS guidance for the next quarter slightly missed forecasts. Among seven tracked consumer discretionary footwear stocks, the group collectively beat revenue consensus by 1.7%, with Genesco posting the biggest beat at 2.9% revenue growth and Deckers raising its full-year guidance the most. Crocs delivered the slowest revenue growth in the group, but its stock has risen 25.5% since reporting.

Deckers Outdoor debuted its UGG Willy Chavarria collaboration at Paris Fashion Week, marking a surprise global runway launch aimed at boosting UGG's fashion credibility and cultural reach. The collection featured unisex boots and slippers with recognizable faces, positioning UGG as a culture-connected lifestyle brand beyond seasonal footwear. Deckers Outdoor shares have fallen 4.1% over the past week and 11.0% over the past month to $101.28, though the stock has gained 14.3% over three years and 54.8% over five years. The Paris debut supports UGG's push into higher-profile channels and international growth, alongside Deckers Outdoor's recent addition to several Russell value indices. Investors will watch whether the collaboration drives sustained full-price demand and expands UGG's customer base in Europe and other markets.

Nike's turnaround under CEO Elliott Hill's 'Win Now' strategy faces significant challenges including a 10% year-over-year sales decline in China and stiff competition from brands like On Holding and Hoka. The stock is down more than 40% from its 52-week high. Analysts suggest the strategy will likely take years to execute, not just quarters, and recommend a wait-and-see approach ahead of the June 30 earnings release.

Consumer discretionary footwear stocks posted a strong first quarter, with aggregate revenues beating analyst consensus estimates by 1.7%. Deckers reported revenues of $1.12 billion, up 9.6% year on year and exceeding expectations by 2.9%, while also delivering the highest full-year guidance raise among the seven companies tracked. Genesco recorded revenues of $487 million, up 2.8% and beating estimates by 2.9%, marking the biggest analyst estimate beat in the peer group. Caleres saw revenues of $666.6 million, up 8.5% and surpassing estimates by 1.3%, but its next-quarter EPS guidance missed expectations, sending shares down 11.1%. Crocs posted revenues of $921.5 million, down 1.7% yet beating estimates by 2.1%, though its next-quarter EPS guidance slightly missed, and its stock rose 24.8%. Nike reported revenues of $11.28 billion, flat year on year and in line with estimates, but its stock fell 14.4% as it had the weakest performance against analyst estimates among peers. On average, share prices of the group have held steady, up 4.7% since the latest earnings results.

Nike shares have fallen nearly 65% over the past five years, yet the stock does not appear attractively valued given ongoing sales challenges. The company’s fiscal third-quarter revenue was flat year over year, but after removing foreign-currency effects, revenue actually declined 3%. Management missteps, including a shift toward direct-to-consumer sales that alienated wholesale partners, and a lack of innovative products have allowed competitors like Adidas, On Holding, and Deckers Outdoor’s Hoka brand to take market share. New CEO Elliott Hill, who returned in October 2024, is refocusing on sports, but top-line growth has yet to materialize. With a price-to-earnings ratio of 30, only slightly below the S&P 500’s multiple of 32, the stock may be a value trap until there is evidence of a sustained turnaround.