Deckers Brands: Will Its Strategic Investments in SG&A And Brand Awareness Help in Sustainable Growth? 

Deckers Brands recently reported its financial performance for the fourth quarter and the fiscal year 2025. The company showcased robust growth across its portfolio, emphasizing the success of its leading brands, HOKA and UGG. With a revenue increase of 16% year-over-year, the company approached $5 billion in sales, signaling strong brand appeal and strategic market positioning. Positively, Deckers Brands demonstrated strong growth metrics in various areas. HOKA saw an impressive 24% increase in revenue compared to the previous year, reaching $2.2 billion, driven by robust international expansion and increasing brand awareness. This growth is attributed to expanded distribution, strategic brand building initiatives, and innovative product launches. UGG also delivered solid revenue growth of 13%, predominantly fueled by international markets, and underscored its growing appeal across different female and male consumers and seasons. The company’s gross margin improved significantly by 230 basis points to 57.9%, and the operating margin rose by 200 basis points to 23.6%. These improvements reflect favorable brand and product mix, as well as high levels of full-price selling.