Jul. 26 at 10:52 AM
$DECK sold off after HOKA growth slowed to 7.7%, but the quarter was not as weak as the reaction suggests.
Revenue increased 5.7% to
$1.02B, DTC sales grew 13% and gross margin improved to 56.4%. Deckers also raised FY2027 EPS guidance to
$7.35-
$7.50 and repurchased
$338M of stock during the quarter.
The key question is no longer whether HOKA is growing, but whether growth can reaccelerate while tariffs and freight costs pressure margins. Watch
$NKE and
$ONON as well, since their results provide useful signals on premium athletic footwear demand and competitive intensity.
Bull case: powerful brands, no debt and
$1.6B in cash. Bear case: slowing growth and rising costs.
Not financial advice. Always do your own research.
