Deckers Outdoor Corp
DECK: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|PC | LOCK|B!k&> | LOCK|>w$@LlC |
Enduring Popularity of Premium Shoe Brands Ugg and Hoka Provides Deckers With Competitive Edge
Business Strategy and Outlook
We assign Deckers a Morningstar Economic Moat Rating of narrow based on a brand intangible asset. Our moat rating is based on the brand strength of Ugg (50% of fiscal 2026 sales) and Hoka (47%). These footwear brands have powered Deckers to nine consecutive years of sales growth above 5%. The firm’s total sales rose to nearly $5.5 billion in fiscal 2026 from less than $2 billion before fiscal 2019. Deckers’ profitability has also risen—its fiscal 2026 operating margin reached 23%, up from around 9%-12% (adjusted) in fiscal years 2015-18.
