Global footwear, apparel, and accessories business Deckers Brands announced a 9.1 per cent Y-o-Y rise in net sales during Q2, FY26, powered by double-digit growth from its flagship brands, Hoka and Ugg. Despite the strong quarterly performance, the company's shares slipped after its full-fiscal 2026 sales forecast landed below analysts' predictions.

For the quarter ended September 30, Hoka's net sales increased by 11.1 per cent to $634.1 million, compared to $570.9 million a year prior. The net sales of Ugg's grew by 10.1 per cent to $759.6 million, compared to $689.9 million. In contrast, net sales for the company’s ‘other brands’ segment declined by 26.5 per cent to $37.2 million.

Overall wholesale net sales of Deckers Brands expanded by 13.4 per cent during the quarter while direct-to-customer (DTC) net sales contracted by 0.8 per cent. Regionally, international net sales increased sharply by 29.3 per cent, while domestic (U.S.) net sales decreased by 1.7 per cent. The company’s financial health improved slightly, with the gross margin rising to 56.2 per cent.

The double-digit growth delivered by Hoka and Ugg in the second quarter, reflects strong performance and international momentum for these brands, says Stefano Caroti, President and CEO, Deckers Brands’ Innovative products and a ‘best-in-class operating model enablesthe company to achieve its full-year outlook, he adds.

For the full FY26, Deckers Brands expects Hoka to grow by a ‘low-teens percentage’ and Ugg to grow by a ‘low-to-mid-single-digit percentage.’ The business projects its gross margin will be approximately 56 per cent and its operating margin will be around 21.5 per cent.