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Deckers soars on strong international demand for Hoka and Ugg

Hoka just posted the biggest quarter in its history.

7/25/25 6:11AM

Deckers Outdoor is up as much as 13% in early trading Friday after the footwear maker posted stronger-than-expected Q1 results.

Revenue rose 17% from a year ago to $964.5 million, beating the $901.1 million analysts estimated. Earnings per share came in at $0.93, handily exceeding the $0.68 expected, per LSEG — powered by strong overseas demand for Deckers’ two biggest brands.

Ugg, best known for its sheepskin boots, posted a 19% sales gain, while Hoka, Deckers’ breakout running shoe brand, jumped 20%, marking its “largest quarter in history.” It’s expected to remain the company’s “fastest-growing” brand this year, according to CEO Stefano Caroti.

Yesterday’s upbeat report follows a steep 48% decline in Deckers shares year to date, including a sharp dip in May when the company pulled its annual forecast, citing tariff-driven “macroeconomic uncertainty.” Deckers still offered guidance only for the next quarter, though it came in line with analyst consensus.

Strong demand from Europe and China was a major Q1 growth engine, with international sales soaring nearly 50% — more than offsetting a 2.8% drop in domestic sales amid a “choppy US consumer environment,” Caroti said.

To absorb higher import costs, Deckers raised prices on some Hoka models starting July 1. But so far, there’s been no “material” impact on demand, with the company expecting Hoka sales to rise ~10% and Ugg to grow “at least mid-single digits” in the current quarter, CFO Steven Fasching said.

Max Knoblauch10/24/25

Premium seats help push airlines higher following third-quarter results

Shares of American Airlines are climbing toward the carrier’s best trading day since August 12, when ultra-budget rival Spirit issued its initial warning about its ability to survive. American’s shares are up more than 7% on Friday afternoon.

Investors’ optimism comes a day after American posted a better-than-expected full-year earnings forecast. In a call with investors, American said that it’s ramping up its premium cabin offerings.

“Our ability to grow capacity in premium markets will be further supported as we take delivery of new aircraft and reconfigure our existing fleet. These efforts will allow us to grow our premium seats at nearly two times the rate of main cabin seats,” CEO Robert Isom said. American CFO Devin May said that nose-to-tail retrofits of certain wide-body jets will bump the number of premium seats available on those planes by 25%.

Extra legroom has been a boon for major carriers, particularly this quarter. Delta Air Lines said its premium product revenue grew 9% in Q3, compared to a 4% drop in economy seat revenue. Similarly, United Airlines said its premium revenue grew 6%, outpacing economy. Shares of both airlines were up more than 3% on Friday.

Carriers with less exposure to first- and business-class tickets like Southwest Airlines and JetBlue didn’t see the same amount of momentum on the day.