DECK Surges 2.54% on $270M Volume Ranking 347th as HOKA and UGG Sales Drive Revenue Growth Despite Margin Pressures

Deckers Outdoor Corporation (DECK) rose 2.54% on August 18, with a trading volume of $270 million, ranking 347th in market activity. The stock’s performance followed mixed signals from its fiscal 2026 first-quarter results, where revenue grew 17% year-over-year to $964.5 million, driven by record sales from HOKA and UGG brands. HOKA revenue surged 19.8% to $653.1 million, while UGG advanced 18.9% to $265.1 million, reflecting strong demand in both domestic and international markets.

Profitability, however, faced headwinds as gross margin contracted 110 basis points to 55.8%. The decline was attributed to slower direct-to-consumer sales growth relative to wholesale, increased promotional activity, and higher freight costs. Management warned of continued margin pressure in fiscal 2026, with projected gross margin for the second quarter between 53.5% and 54%. Rising tariffs on Vietnam-sourced products could add up to $185 million in costs this year, partially offset by pricing adjustments and operational efficiencies.

Despite short-term challenges, Deckers emphasized long-term resilience through brand strength, international expansion, and disciplined cost management. International sales grew 49.7% year-over-year, underscoring the global appeal of its premium footwear. The company also launched the HOKA Mafate 5 trail shoe with Rocker Integrity Technology, aiming to reinforce its innovation-driven market position. Analysts noted that while near-term margins remain under pressure, the company’s strong brand equity and strategic execution provide a foundation for sustained growth.

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