DECK's International Segment Gains Traction on Strong HOKA, UGG Demand

Deckers Outdoor Corporation DECK international business emerged as a key growth driver in the first quarter of fiscal 2027. International net sales increased 8.4% year over year to $502.1 million, outpacing 3.2% domestic growth. International revenues accounted for nearly half of total company sales, highlighting the growing importance of overseas markets.

HOKA was a major contributor to international momentum. Although reported international wholesale revenues were affected by shipments occurring later this year compared with unusually early shipments in the prior-year period, underlying demand remained strong. Europe, the Middle East and Africa (EMEA) posted robust wholesale sell-through and a quarterly record for reorders, while international DTC delivered exceptional growth across Europe, China and Japan.

UGG strengthened its international presence, with growth led by overseas markets, particularly Asia. Its mono-brand retail presence has been effective in driving consumer adoption of versatile UGG products across new categories. Investments in fashion casual footwear, sneakers, sandals and apparel are broadening the brand’s appeal across international consumer segments.

Deckers’ international opportunity is supported by continued product innovation and consumer engagement. HOKA’s differentiated performance and lifestyle offerings are helping expand its reach, while UGG’s broader assortment and year-round positioning are reducing reliance on seasonal demand. Management highlighted resilient demand across international markets despite a more pressured consumer environment in Europe.

International wholesale and distributor operations are expected to be a significant driver of growth in the second half of fiscal 2027, as planned shipment timing normalizes. Management expects consolidated revenues to be in the range of $5.86-$5.91 billion, with HOKA growing at a low-double-digit rate and UGG at a mid-single-digit rate. Continued international DTC strength provides Deckers with a solid platform for global share gains. We anticipate international net sales to increase 12.6% year over year in fiscal 2027.

DECK’s International Performance Compared With TPR & WWW

Tapestry, Inc. TPR and Wolverine World Wide, Inc. WWW are the key footwear companies competing with Deckers in the global arena.

Tapestry posted strong international growth in the fourth quarter of fiscal 2026, with Europe revenues rising 19% year over year and Greater China sales increasing 28% on a constant-currency basis. Growth was supported by robust direct business, broad-based channel momentum, new customer acquisition and market share gains, while Other Asia revenues increased 22%, led by South Korea and Australia. Japan sales declined 4% as the company intentionally pulled back on promotions. Tapestry expects international markets to contribute an increasing share of growth, with fiscal 2027 guidance calling for mid-teens growth in both Europe and Greater China, high single-digit growth in Other Asia and a return to growth in Japan.

Wolverine posted strong international growth in the second quarter of fiscal 2026, with international revenues rising 10.9% year over year to $277.2 million, or 9.6% on a constant-currency basis. Merrell and Saucony led the momentum, with international markets driving strong wholesale performance, while Merrell benefited from its key city strategy and Saucony continued to see particularly strong demand in Europe. Wolverine's global distribution network, spanning approximately 170 countries and territories, along with expanding partnerships and targeted activations across key international markets, continues to support brand momentum and global growth.

DECK’s Price Performance, Valuation & Estimates

Shares of Deckers have lost 8.9% over the past three months compared with the industry’s 2.2% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, DECK trades at a trailing price-to-sales ratio of 2.24X, up from the industry’s average of 1.39X. It has a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Deckers’ fiscal 2027 earnings implies year-over-year growth of 6.8%, whereas the same for fiscal 2028 indicates an uptick of 10.7%. The estimates for fiscal 2027 and 2028 have been revised upward by 5 cents and 6 cents, respectively, over the past 30 days.

Image Source: Zacks Investment Research

DECK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research