Enduring Popularity of Premium Shoe Brands Ugg and Hoka Provides Deckers With Competitive Edge

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.