Enduring Popularity of Stylish Footwear Brands Ugg and Hoka Provides Deckers With Competitive Edge

We rate Deckers as a narrow moat company based on a brand intangible asset. Our moat rating is based on the brand strength of Ugg (51% of fiscal 2025 sales) and Hoka (45%). They have powered the firm to five consecutive years of double-digit sales growth. Specifically, Deckers’ total sales were nearly $5 billion in fiscal 2025, up from less than $2 billion before fiscal 2019. Its profitability has also risen, with its fiscal 2025 operating margin at nearly 24%, up from around 9%-12% (adjusted) in fiscal years 2015-18.