Key Takeaways AEO's brand-level performance was a key highlight. DECK gains from HOKA and UGG momentum, margin discipline, and international growth. TPR raised fiscal 2026 guidance as Coach's strength and margin expansion lift results.The Retail - Apparel and Shoes industry entered 2026 on a relatively stable note despite a volatile macroeconomic environment, with demand increasingly shaped by more selective, value-conscious consumer and faster-moving trend cycles.The Zacks-defined Retail – Apparel and Shoe ...

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Southern California-based global lifestyle brand UGG® (a division of Deckers Brands [NYSE: DECK]) releases the next offering of clogs and mules for Spring 2026, this time featuring new silhouettes and styles derived from the fan-favorite UGG® Tasman. To showcase the release of these soon-to-be consumer favorites, UGG® tapped global rap sensation Central Cee and Olympic snowboarding champion Su Yiming to be the faces of the newest campaign to celebrate ele. ...

Industry Overview - The outdoor industry encompasses recreation, wellness, and lifestyle experiences focused on nature and activities away from home, including outdoor gear, apparel, recreational vehicles, and services for hiking, camping, boating, and off-roading [1] - The industry is benefiting from shifting consumer values towards health, sustainability, and experience-driven living, leading to steady demand across various age groups and regions [2] Company Highlights Deckers Outdoor Corp. (DECK) - Deckers Outdoor reported quarterly earnings of $3.33 per share, exceeding the Zacks Consensus Estimate of $2.77 per share, with revenues of $1.96 billion, surpassing estimates by 4.27% [6] - The company is experiencing strong momentum driven by its HOKA and UGG brands, with HOKA being a key growth engine supported by global demand and market share gains [7] - Deckers is well-positioned for sustained growth with a strong balance sheet, ongoing share repurchases, and investments in product innovation and brand building [8] - The expected revenue and earnings growth rates for Deckers are 8.5% and 7.9%, respectively, for the current fiscal year ending March 2026 [10] Columbia Sportswear Co. (COLM) - Columbia Sportswear reported fourth-quarter 2025 earnings of $1.73 per share, surpassing the Zacks Consensus Estimate of $1.22, with net sales of $1,070.2 million exceeding estimates of $1,037 million [11] - The company is showing momentum through its ACCELERATE strategy, targeting younger consumers with refreshed branding and strong digital marketing [12] - Columbia's Profit Improvement Program focuses on operational efficiency and cost discipline while maintaining investments in brand building, with solid financial health characterized by no debt and strong cash levels [13] - The expected revenue and earnings growth rates for Columbia are 2.1% and -10.6%, respectively, for the current year [13]

Group 1 - ServiceNow Inc. has been named "Stock to Study" by BetterInvesting Magazine for April 2026, indicating potential interest from investors regarding its stock valuation [1] - The fundamental data for ServiceNow, including sales, earnings, pre-tax profit, and return on equity, is accessible through the National Association of Investors Corp. [2] - A full report on ServiceNow will be published in the April 2026 issue of BetterInvesting Magazine, providing detailed insights for investors [2] Group 2 - The same April 2026 issue will also feature a fundamental review of Deckers Outdoor Corp., which is considered undervalued and worthy of further study [3] - The Editorial Advisory and Securities Review Committee of BetterInvesting consists of several CFA members, indicating a robust analytical framework for stock evaluation [3]

Core Viewpoint - UGG has successfully transformed from a seasonal winter brand to a year-round fashion staple, leveraging trends and strategic marketing to regain market relevance and drive sales growth [3][7][12]. Group 1: Brand History and Development - UGG originated in Australia as a type of sheepskin boot, gaining popularity in the 1970s among surfers for its warmth and moisture-wicking properties [4]. - The brand was founded in the U.S. by Brian Smith in 1978, who recognized the potential market in the U.S. compared to Australia [4][5]. - UGG was sold to Deckers Outdoor Corporation in 1995 for approximately $15 million, which helped expand its market presence through significant marketing investments [6]. Group 2: Marketing and Brand Positioning - Deckers invested millions in marketing UGG, transforming it into a fashionable brand, especially after endorsements from celebrities like Oprah Winfrey and Beyoncé [6][7]. - The brand faced challenges in the early 2010s due to declining sales and competition from counterfeit products, leading to a perception of being outdated [7][12]. - UGG's resurgence during the COVID-19 pandemic was driven by increased demand for comfortable footwear, with sales rising nearly 13% year-over-year by March 2021 [7][8]. Group 3: Product Strategy and Innovation - UGG has adapted its product offerings to include various styles beyond winter boots, such as sandals and clothing, aiming to become a year-round brand [14]. - The brand has focused on appealing to younger consumers by embracing Y2K fashion trends and collaborating with independent designers [9][10]. - Deckers has implemented a strategy to enhance brand exclusivity by limiting distribution channels and managing inventory more strictly [10][11]. Group 4: Market Challenges and Future Outlook - Despite recent growth, UGG is projected to experience moderate single-digit revenue growth in the 2026 fiscal year, a slowdown compared to previous double-digit growth [12]. - The brand faces ongoing challenges from counterfeit products and a consumer culture that favors cheaper alternatives, which could impact its market share [13]. - UGG's reliance on seasonal sales remains significant, with 50% of annual revenue generated during the winter months [14].

Financial Performance - Net sales for the three months ended December 31, 2025, reached $1,957,549, an increase of 7.1% compared to $1,827,165 for the same period in 2024[19] - Gross profit for the nine months ended December 31, 2025, was $2,513,088, reflecting a 9.0% increase from $2,305,895 in 2024[19] - Net income for the nine months ended December 31, 2025, was $888,500, a 9.1% increase from $814,680 in 2024[19] - The company reported a basic net income per share of $3.34 for the three months ended December 31, 2025, compared to $3.01 in 2024, an increase of 10.9%[19] - Net income for the nine months ended December 31, 2025, was $888,500, compared to $814,680 for the same period in 2024, representing a year-over-year increase of approximately 9%[24] - Income from operations for the nine months ended December 31, 2025, increased by 10.0% to $1,106,174[87] - Net income grew by 9.1% to $888,500, with net income per share increasing to $6.05 from $5.35, a rise of 13.1%[117] Assets and Liabilities - Total assets as of December 31, 2025, amounted to $4,102,150, up from $3,570,252 as of March 31, 2025, representing a growth of 14.8%[18] - Total current liabilities increased to $1,149,443 as of December 31, 2025, compared to $769,941 as of March 31, 2025, marking a rise of 49.2%[18] - Total stockholders' equity as of December 31, 2025, was $2,609,454, up from $2,513,013 as of March 31, 2025, representing a growth of 3.8%[18] - Retained earnings as of December 31, 2025, were $2,374,985, up from $2,307,699 as of March 31, 2025, indicating an increase of 2.9%[21] Sales Performance - Direct-to-Consumer sales for the nine months ended December 31, 2025, were $1,799,764, up from $1,719,569 in 2024, reflecting a growth of 4.7%[43] - Domestic net sales for the three months ended December 31, 2025, were $1,200,889, compared to $1,169,291 in 2024, indicating a growth of 2.7%[43] - International net sales for the three months ended December 31, 2025, were $756,660, up from $657,874 in 2024, representing a growth of 15.0%[43] - HOKA brand net sales rose by 16.3% to $1,916,087, while UGG brand net sales increased by 8.0% to $2,330,154[87] - Total wholesale net sales increased by 13.8% to $2,553,163, while direct-to-consumer sales rose by 4.7% to $1,799,764[110] Expenses - Selling, general, and administrative expenses for the nine months ended December 31, 2025, were $1,406,914, compared to $1,300,728 in 2024, reflecting an increase of 8.1%[19] - SG&A expenses increased by 8.2% to $1,406,914[87] - The company reported a depreciation, amortization, and accretion expense of $57,141 for the nine months ended December 31, 2025, up from $50,911 in 2024[24] Cash Flow - Cash provided by operating activities for the nine months ended December 31, 2025, was $1,086,113, slightly down from $1,117,515 in 2024[24] - Cash and cash equivalents at the end of the period were $2,086,746, compared to $2,240,923 at the end of the previous year[24] - The company experienced a net change in cash and cash equivalents of $197,558 for the nine months ended December 31, 2025, compared to $738,872 in 2024[24] - The net cash used in financing activities increased significantly to $824,371, up 160.4% from $316,638 in the previous period[132] Stock Repurchase - The company repurchased common stock totaling $813,488 during the nine months ended December 31, 2025, compared to $301,011 in the same period of 2024[24] - The total number of shares repurchased in the nine months ended December 31, 2025, was 8,019,067 at a weighted average price of $101.44 per share, totaling $813,488,000[73] - The remaining authorized shares for repurchase under the stock repurchase program as of January 13, 2026, is $1.77 billion[153] Tax and Compliance - Income tax expense for the three months ended December 31, 2025, was $145,768, with an effective income tax rate of 23.3%[52] - The effective income tax rate increased to 22.9% from 22.6%, primarily due to jurisdictional mix and reduced tax benefits[116] - The company is monitoring the impact of recent tax law changes, including the One Big Beautiful Bill Act, which has provided cash tax benefits in the current fiscal year[58] Other Comprehensive Income - The company reported a total other comprehensive loss of $11,686 for the nine months ended December 31, 2025[24] - The accumulated other comprehensive loss (AOCL) as of December 31, 2025, is $46,068,000, which includes an unrealized loss on cash flow hedges of $3,980,000[74] - Total other comprehensive income increased significantly by 176.1% to $3,586, driven by higher foreign currency translation gains[118] Operational Changes - The company has phased out standalone operations for the AHNU brand and Koolaburra brand, closing their respective websites and completing the transition in the wholesale channel[33] - The company entered into a 3PL service agreement with a minimum commitment of approximately $93,611 payable through March 31, 2029[59] - The company is evaluating the impact of several upcoming Accounting Standards Updates (ASUs) on its financial statements, with planned adoption periods ranging from Q1 FY 2027 to Q1 FY 2029[41]

Core Insights - HOKA, a brand under Deckers, achieved a net sales growth of 18.5% in Q3 of fiscal year 2026, indicating strong performance despite a slowdown compared to previous years [1][3][4] - The overall net sales for Deckers reached $1.958 billion, with HOKA contributing $628.9 million, highlighting its significance in the company's growth strategy [3][4] - Increased competition in the running shoe market is impacting HOKA's growth, as other brands like Adidas and ANTA are also seeing substantial sales increases [4][8][9] Financial Performance - Deckers reported a net sales increase of 7.1% year-over-year, with HOKA's sales growing to $628.9 million [3] - HOKA's previous growth rates were significantly higher, with 23.7% in Q3 of fiscal year 2025 and 58.5% in fiscal year 2023, indicating a trend of slowing growth [4][6] - The brand's sales growth has been supported by product innovation and channel expansion, contributing to an increase in gross margin [3][4] Market Dynamics - The running shoe market is experiencing heightened competition, with brands like ANTA and international giants such as Nike and Adidas intensifying their presence [8][9] - HOKA's market share is being challenged as the consumer base expands to include more casual runners, which could dilute its existing market [9] - The growth of the running market is evident, with a nearly 80% increase in sales of trail running shoes on major e-commerce platforms [7] Strategic Initiatives - HOKA has been expanding its footprint in China, with over 230 stores established, making it a crucial market for the brand's growth [6][9] - The brand is focusing on a "Four Cities Flying Together" strategy to strengthen its presence in key economic regions of China [9] - Consumer trends indicate a shift towards comfort and fashion in sportswear, which HOKA aims to capitalize on by introducing products that meet these demands [9]

Core Insights - HOKA, a brand under Deckers, has shown a net sales growth of 18.5% in Q3 of FY2026, but this growth rate is slowing compared to previous years where it exceeded 30% [1][3] - The competitive landscape in the running shoe market is intensifying, impacting HOKA's market share and growth potential [1][8] Financial Performance - Deckers reported a total net sales of $1.958 billion for Q3 FY2026, a year-over-year increase of 7.1% [3] - HOKA's net sales reached $628.9 million, marking an 18.5% increase compared to the previous year [3] - In FY2025, HOKA's net sales were $429.3 million, reflecting a 23.7% growth from the previous year [4] Market Dynamics - HOKA's growth is supported by product innovation and channel expansion, which have driven global demand [3] - The running shoe market is experiencing significant competition, with brands like Adidas and On running achieving higher growth rates [4][8] - The Chinese market is becoming a crucial driver for HOKA's international growth, with over 230 stores established [5][6] Consumer Trends - The running market in China is expanding rapidly, with a nearly 80% increase in sales of trail running shoes on major e-commerce platforms [6] - The trend of consumer upgrading in the sportswear sector is contributing to the growth of brands like HOKA, as consumers shift towards higher-priced products [7] Competitive Landscape - HOKA faces competition from both international brands like Nike and Adidas, as well as domestic brands such as Anta and Li Ning, which are also targeting the mid-to-high-end running shoe market [8][9] - The entry of new players and the expansion of existing brands are likely to fragment HOKA's market share [9]

Core Insights - The article emphasizes the importance of understanding that past performance does not guarantee future results, highlighting the need for careful analysis when considering investments [2][3] Group 1 - The article discusses the lack of any current stock or derivative positions held by the author in the companies mentioned, indicating a neutral stance [1] - It clarifies that the information provided is not a specific offer for products or services, nor does it constitute financial advice [2] - The content is presented as factual and up-to-date, but it does not guarantee accuracy or completeness in the analysis of the subjects discussed [2][3]

Core Viewpoint - The article emphasizes the potential of Asian equities (excluding China) in the US markets, highlighting that they are often overlooked and under-allocated in investor portfolios [1]. Group 1: Analyst Background - The analyst has a decade of experience as a buy-side equity analyst focusing on Asia Pacific equities [1]. - A fundamental bottom-up approach combined with a macroeconomic perspective is employed to identify stocks benefiting from global trends [1]. - The primary sectors of focus are Financials, Industrials, and Consumer Discretionary [1]. Group 2: Purpose of Writing - The intention behind writing on Seeking Alpha is to share insights and increase awareness of Asian equities listed in US markets [1]. - The articles aim to help expand the investment universe for readers by highlighting investment opportunities in the Asian market [1].