Deckers Outdoor Corporation, the parent company of the Hoka and Ugg brands, saw its stock price jump in extended trading on Thursday after reporting fiscal first-quarter earnings that exceeded analyst forecasts. The California-based firm posted revenue of $825 million, up 22% from the same period last year, driven by surging demand for its performance footwear and lifestyle products.
The Hoka brand was the standout performer, with sales climbing 34% year-on-year, as runners and casual wearers alike continued to snap up the brand's distinctive cushioned trainers. Ugg sales rose 14%, boosted by strong early-season demand for its classic boots and newer lifestyle offerings. The company's direct-to-consumer channel grew 18%, while wholesale revenue increased 12%.
Investors responded positively to the update, sending shares up more than 8% in after-hours trading. The rally extended into Friday's session, with Deckers stock trading around $890, pushing its market capitalisation above $22 billion. The gains also lifted broader sentiment in the footwear sector, with shares of rivals such as Nike and Adidas edging higher in sympathy.
Analysts at Jefferies noted that Deckers' ability to sustain momentum across both its core brands, despite a cautious consumer spending environment, was a key positive. “Hoka continues to take market share in the performance running category, and Ugg's brand heat remains intact,” they said in a note. The company also raised its full-year revenue guidance, now expecting sales between $4.7 billion and $4.75 billion.
For UK investors and pension holders with exposure to US equities or global consumer goods funds, the results underscore the resilience of premium lifestyle brands even as inflation pressures persist. The strong performance may also benefit UK-listed retailers that stock Hoka and Ugg products, such as JD Sports and Foot Locker, which could see continued demand for the brands through their stores and online platforms.