Deckers Shares Tumble as Hoka Growth Cools

The California-based company posted fiscal first-quarter sales of $1.02 billion, a 5.7% increase that mirrors Wall Street projections but marks a retreat from the 9.6% growth seen in the preceding period. Hoka, a former engine of rapid expansion, saw its growth rate taper to 7.7%, while the Ugg brand similarly experienced softer performance. Finance Chief Steven Fasching characterized the dip as a non-linear fluctuation, emphasizing that the firm is prioritizing long-term sustainable demand over immediate, aggressive scaling.

Operational headwinds loom for the current quarter, with management warning that rising freight costs and impending tariffs threaten to squeeze margins. Despite these pressures, Deckers remains optimistic about the back half of the fiscal year. The company raised its full-year earnings guidance to a range of $7.35 to $7.50 per share, up from its previous estimate of $7.30 to $7.45. Net income reached $130 million, or 94 cents a share, outperforming the 88-cent consensus among analysts polled by FactSet.