FY 2026 growth was 10%, reaching its slowest pace in five years. The Hoka phenomenon, which continues to appeal to running enthusiasts and represents 41% of revenue, remains firmly in double-digit growth territory.

It's the UGG brand, representing 46% of revenue and which is more sensitive to teenage demand, that is slowing more significantly and weighing on the group's overall performance.

FY 2026 is primarily characterized by a critical slowdown in North America, where growth was a minimal 0.2% over the last twelve months, effectively dipping into negative territory when adjusted for inflation.

This is the main point of contention, fortunately offset by international growth which, at 27% in 2026, remains in line with its 5-year average.

Investors had sensed the shifting winds months ago and adjusted their expectations accordingly. The company is taking advantage of this environment to buy back $1.1bn of its own shares - equivalent to its entire annual profit - at an average price of $102.

The board of directors has just approved a new $3.5bn share buyback plan. On paper, this makes perfect sense: Deckers is well-capitalized, has no net debt, and is trading at valuation multiples that no longer price in any growth.

Should growth return - and that is the key condition - shareholders will probably applaud this move. For that to happen, UGG must once again gain traction with young North Americans, which is currently being courted by numerous alternatives, including Birkenstock.

Experience shows that fallen angels in the fashion industry rarely return to a state of weightlessness. Sudden falls from grace are common, as evidenced recently by the cases of Lululemon or Dr. Martens.

Even the almighty Nike, despite its ubiquitous presence on shelves and in advertising, is currently struggling to regain its footing.