HOKA's DTC is gaining momentum again.

``` HOKA’s DTC is up and running again. For the fourth fiscal quarter ending March 31, 2026, HOKA’s parent company Deckers achieved revenue of $1.119 billion, up 9.6% year-over-year; full fiscal year revenue reached $5.47 billion, up 9.8% year-over-year. HOKA remains the most important growth engine. In fiscal year 2026, HOKA’s revenue grew 15.9% to $2.587 billion; fourth-quarter revenue grew 14.5% year-over-year to $671 million, setting a new record for quarterly revenue for the brand. Over the past few years, leveraging thick-soled running shoes, trail running, marathons, and outdoor lifestyle scenarios, HOKA has rapidly broken out, establishing strong recognition between professional sports and everyday wear. However, as the brand scales up, the market’s focus on HOKA has shifted to resilience and quality of growth: can it maintain high demand, channel efficiency, and full-price selling capability on a larger scale? DTC is precisely the critical metric for this. In the first half of fiscal 2026, HOKA’s DTC channel came under pressure. In Q1, HOKA’s global DTC grew only 3% year-over-year, significantly lower than the 30% growth in wholesale for the same period; in Q2, HOKA’s DTC growth rebounded to 8%, but was still lower than wholesale’s 13%. This was partly due to a high base, as well as more cautious consumer sentiment in the U.S. and some demand shifting toward multi-brand offline retailers. The change occurred in the second half. In the holiday third quarter, HOKA DTC grew 19% year-over-year, with wholesale up 18%, becoming more balanced; in the fourth quarter, HOKA DTC maintained 18% growth, again exceeding wholesale’s 13%. For HOKA, as the “new star” of running shoes, DTC is not just a sales channel, but a reflection of brand management capability. Through own-brand stores, proprietary e-commerce, membership programs, and running communities, the brand can obtain consumer feedback more directly, organize new product launches, and reduce reliance on external channels and discount promotions. Especially as running shoe consumption becomes more professional and segmented, how to retain runners, trail users, and lifestyle consumers within its own system directly impacts HOKA’s repurchase rate, average transaction value, and full-price sales capability. Deckers is also accelerating its rollout of HOKA direct-operated stores. Management stated at the earnings meeting that in the future, about 20 to 25 HOKA stores are expected to open each year, focusing on major cities and international markets, with continued expansion in Asia, especially China. These stores are not only retail terminals, but also shoulder the functions of product display, trial experience, customer engagement, and online DTC conversion entrances. Looking ahead to fiscal 2027, Deckers expects revenue to reach $5.86-5.91 billion, with HOKA achieving low-double-digit revenue growth and UGG achieving mid-single-digit growth. For HOKA, DTC’s growth rate will likely outpace wholesale, and international market growth will continue to exceed that of the U.S. domestic market. However, caution must be maintained on the profit front. For fiscal 2026, Deckers had a gross margin of 57.7%, down 20 basis points from last year. Management noted that this included about 80 basis points of tariff impact, but about 60 basis points of underlying gross margin expansion—mainly from improved product mix and lower shipping costs—offset some pressure. For fiscal 2027, the company’s forecasts for both gross margin and operating margin are lower than in fiscal 2026; gross margin is projected to be about 56.5%, and operating margin about 21.5%, down from about 23.1% in 2026. Compared to temporary fluctuations in the U.S. domestic market, China remains one of the most promising areas for HOKA’s international expansion. Management stated that HOKA has expanded its high-end brand presence in China and maintained strong full-price sales performance in both existing and new stores as well as partner channels, thus increasing market share. In China and other international markets, whether HOKA can use DTC to retain core users, maintain pricing discipline during wholesale expansion, and continue to deliver product and community value in the high-end running shoe segment, will remain key for the future. Risk Warning and Disclaimer The market involves risk, and investment should be approached with caution. This article does not constitute individual investment advice and has not taken into account the individual investment objectives, financial situation, or needs of any specific user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment decisions based on this are at one’s own risk. ```