I’m not about to claim that combing through SEC filings and earnings call transcripts is my hobby, but every once in a while I get inspired.
After a recent Trail Waves deep dive into the shoes worn at Western States, I wanted to take the next logical step: looking closer at HOKA, who ran away with a 32% share of the Western States field.
HOKA, owned by Deckers Outdoor Corp. (stock symbol DECK), isn’t just another trail brand. It dominates the scene, leading market share at both the 2025 Western States Endurance Run and 2024 Ultra Trail du Mont Blanc1, sponsoring some of the sport’s biggest names, and serving as the title sponsor of both races.
So I cracked open Deckers’ latest financials to see how HOKA fits into the bigger picture, its performance, and management’s view of its future.
What follows are 8 of the most interesting takeaways from Deckers’ FY Q1 2026 earnings release, financial statements, and earnings call transcript.
📊 Positive Financial Performance Overall
Before zeroing in on HOKA, it’s worth looking at Deckers’ overall Q1 FY 2026 performance.
In summary, the news was positive:
Revenue rose 17% to $965 million
Diluted earnings-per-share up 24% to $0.93
Operating income up to $165.3 million (vs. $132.8 million in Q1’25)
The company increased its cash position from $1.438 billion to $1.720 billion
The market liked it too. DECK has climbed from $104.94 on July 24 (earnings day) to ~$124 today.
📈 HOKA Drives Large Quarterly Growth
Both HOKA and UGG were strong contributors to Decker’s quarter-over-quarter revenue growth. Both brands outperformed Q1 expectations, with HOKA quarterly revenues, specifically, growing 20% year-over-year to $653 million.
This was HOKA’s largest ever quarter and a key driver of Decker’s 17% year-over-year revenue increase. In fact, HOKA alone accounted for ~$108 million of the ~$140 million year-over-year increase in revenues.
Here’s a snapshot of the operating performance by segment, with HOKA outpacing the rest of the company in net sales and operating margin:
The growth was fueled largely by wholesale strength, especially in international markets, with wholesale revenues up 30% compared to just 3% growth in direct-to-consumer.
🌎 Unique Differences in Regional Performance
On the earnings call, CEO Stefano Caroti and CFO Steven J. Fasching highlighted how HOKA’s performance and strategy varies by region:
EMEA delivered record quarterly wholesale growth.
In APAC, HOKA continues to expand through partner stores and new HOKA-owned retail stores in places like China.
In the US, HOKA has faced headwinds online, with wholesale growth reflecting shifting consumer preferences back towards in-store shopping experiences.
As Caroti put it:
“Our observations indicate that while consumers often search for deals online, brick-and-mortar stores remain the primary venue for full-price sales.”
Both executives pointed to international markets as the biggest long-term opportunity for direct-to-consumer growth, given untapped potential abroad and changing buying habits at home.
🏃 Trail Optimism is Growing
It’s no surprise that HOKA’s biggest franchises are still road shoes:
Bondi
Clifton
Arahi 8
Still, management is bullish on trail. Recent launches like the Mafate X and Rocket X Trail are expected to perform well, and Caroti highlighted a strong pipeline of trail updates ahead (including the Mafate 5):
“In terms of product pipeline, I’m very, very encouraged by what is coming, especially next spring, but also in the fiscal year. We have a couple of products above $200 that we recently launched, Mafate X and Rocket X 3, they’re performing well. Our second largest franchise, Mafate 5, is going to hit the market in August with strong bookings behind that style. Mach X 3 will also be launched in the back half of the year…
…And early in the spring next year, we’re upgrading our number four, five, and six franchise. Mach 7, Gaviota, and Speedgoat are all being updated, and the bookings on these styles is super strong. Very, very encouraged by what is coming down the pipe.”
The Speedgoat, Mafate, and other trail models are all slated for upgrades this year, with strong pre-bookings suggesting momentum. For a brand long defined by the road, trail could become a bigger growth driver in upcoming quarters.
🤷♂️ Trail Growth Still Under the Radar
Despite the optimism, “trail” barely shows up in Deckers’ official reporting.
There’s no mention of trail shoes or trail running anywhere in the Deckers earnings release. The only mention of trail in the quarterly financial statements comes in a description of the types of shoes HOKA sells. The earnings call referenced trail once when Caroti noted the Mafate as the company’s “second largest trail franchise”.
It’s not surprising, but it underscores how early trail running still is in its growth curve and how much headroom remains.
💸 Fueling Growth with Marketing Dollars
Deckers’ SG&A expenses rose 11% year-over-year, going from $337 million in Q1 FY 2025 to $373 million in Q1 FY 2026.
This increase, according to Fasching, was “driven by investment in key areas of the business in support of our growth initiatives, which include higher marketing spend for HOKA and UGG…”.
With HOKA positioned as the company’s growth engine, marketing investment in the brand is expected to continue ramping up.
💡 Optimism Meets Caution
Normally, companies provide forward-looking updates to give analysts an idea of what to expect in future periods, signal future plans, and provide insights into potential growth, strategies, and risks.
On the positive side, the company expects HOKA to continue to perform, with Fasching stating explicitly:
“From a revenue perspective, we expect HOKA to continue as our fastest-growing brand.”
But the company’s forward-looking update carried some caveats. Here’s Fasching:
“Now, moving into our forward-looking update, given the continued macroeconomic uncertainty related to the global trade policy and difficulty predicting impact on the consumer environment and purchasing behavior, we are not providing a formal outlook for fiscal year 2026.”
Tariffs are the biggest concern. If Vietnam’s tariff rate rises from 10% to 20%, Deckers could face an extra $185 million in unmitigated costs of goods sold, which could force price increases.
Throughout the earning’s call, both Caroti and Fasching describe the consumer environment using words such as "choppy”, “challenging”, “competitive”, and “dynamic”. In short, optimism about the company’s growth is tempered by real risks on the horizon.
🤔 Consistent Stock Repurchases Signal Management’s Sentiment
In general, companies will repurchase their own stock when they believe it is undervalued, often as a signal to the market that its current price is not reflective of management’s view of the company.
Deckers has been steadily repurchasing shares, buying over 530,000 per month this quarter for a total of $182 million.
With $1.7 billion in cash on hand, there’s potential for even more buybacks down the line, signaling management’s confidence in the company’s value.
What Do You Think?
What stood out to you? What questions do you still have?
Are there any other companies you’d be interested in seeing similar deep dives for?
The Aid Station
Miscellaneous quick hits. Trail style. Actionable, digestible, essential.
📓One Race, Two Outcomes — UTMB as Told by Ben Dhiman and Jeff MogaveroTwo different outcomes. Two beautifully-written race recaps.
In The Thrill is Gone, Ben Dhiman writes about overcoming difficult conditions to finally complete the UTMB loop with an impressive 2nd place finish.
In Another swing and a miss, Jeff Mogavero writes about how his race ultimately unraveled and the contentment he feels with the effort and experience.
Highly recommend reading each. Kudos, guys!
🤔 Thought-Provoking Post — Trail Running and the Olympics
UltraSignup CEO David Callahan made a LinkedIn post about what it would look like to have trail running in the 2032 Olympics. The post sparked a good amount of commentary, with folks split on either side of the issue.
What do you think?
👟 Gear Dreams Becoming Reality — The Nike ACG Cooling Top
It’s happening. Nike is going to release its already-iconic ACG cooling top at some point in 2026. Sign me up!
2025 shoe choices not available as of the time of publishing.
It's interesting to read that its domestic wholesale business declined Y/Y (though only marginally ... 501.3 vs. 515.9). I wonder which brand took that hit, and what was driving it. Also, pretty strong operating margin for Hoka (38.8%). I wonder how much of that is buoyed by its DTC business.