Summary
- Deckers, parent to Hoka, Ugg, and more, saw its shares plunge by 14% in after-market trading on Thursday after it issued warnings surrounding the international trade landscape.
- In Q4 of FY2025, Hoka led the company’s sales with Q4 net sales of $586.1 million, and Ugg saw net sales increase 3.6% to $374.3 million.
Deckers, parent to Hoka, Ugg, TEVA, and more, has decided to withhold its guidance for fiscal 2026, “given the macroeconomic uncertainty related to evolving global trade policies.” Though the company reported some growth across its largest brands, the brand’s cautions sent its shares falling by about 14% in after-market trading on Thursday, according to WWD.
Instead of full-year guidance, Deckers issued guidance for the first quarter of fiscal 2026, expecting net sales between $890 million and $910 million. This is below expectations, which call for net sales for Q1 between $880 million and $973 million (Yahoo Finance).
In the final quarter of fiscal 2025, Deckers saw net sales increase by 6.5% to $1.02 billion from $959.76 million last year. The company’s net income for Q4 rose to $151.41 million from $127.55 million the year before. Unsurprisingly, Hoka led the company’s sales with Q4 net sales of $586.1 million, while Ugg saw net sales increase 3.6% to $374.3 million. The company’s “Other” brands division, including Teva, Ahnu, and Koolaburra, saw net sales decrease 6.3% to $61.3 million. However, across the full fiscal year 2025, Deckers’ net sales increased 16.3% to $4.99 billion, and net income came out to $966.09 million.
The cautions voiced by Deckers echo the worries reverberating throughout the footwear and sneaker industry, as US President Donald Trump’s controversial tariff policies inch closer to taking effect this Summer. The proposed changes have led Nike to announce price increases this week, a move likely to be followed by competitors adidas and Puma.
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