HOKA's 2025Q4 Earnings Call: Unpacking Contradictions in Growth Strategy, DTC Performance, and Pricing Dynamics

HOKA's growth strategy and long-term goals, inventory management and tariff mitigation strategies, HOKA's U.S. DTC performance, HOKA's international expansion strategy, and TGX models and pricing strategy are the key contradictions discussed in Deckers Outdoor Corporation's latest 2025Q4 earnings call.



Record Financial Performance:
- Deckers Outdoor Corporation reported record revenue of $4.986 billion for fiscal year 2025, up 16% year-on-year. Gross margin expanded to 57.9%, up 30 basis points, and operating margin improved to 23.6%, up 200 basis points.
- The growth was driven by robust performance from brands HOKA and UGG, with HOKA's revenue increasing 24% to $2.2 billion and UGG's revenue growing 13% to $2.5 billion.

HOKA Brand Expansion and Market Penetration:
- HOKA's global revenue increased to $2.2 billion in fiscal 2025, with international revenue expanding to 39% of its global revenue, up from 30% the previous year.
- The increase in revenue was attributed to strategic investments in brand awareness initiatives, expanded distribution, and new product launches, including significant upgrades to the Bondi and Clifton franchises.

UGG's Growth and Men's Product Initiative:
- UGG's revenue grew 13% to $2.5 billion, with international sales representing 39% of total sales, up from 37% last year.
- Growth was driven by the successful introduction of new product styles like the Tasman and Ultra Mini, along with a focused men's product initiative that enhanced brand appeal.

Impact of Macroeconomic Uncertainty:
- Deckers noted increased uncertainty due to shifting U.S. trade policies, which are expected to impact fiscal 2026 operations.
- The company anticipates a potential increase of up to $150 million in cost of goods sold due to tariffs, with potential demand erosion from price adjustments and consumer spending softness.