Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives looking for businesses that earn extraordinary returns on capital without leverage, run by people who treat shareholders' money like their own. Deckers passes both tests with numbers that would make most of the S&P 500 blush: a 57.7% gross margin in fiscal 2026 (higher than Nike has ever achieved), operating margins above 23%, return on equity north of 40% with zero debt, $1.6 billion of cash, and a management team that has retired roughly 30% of the share count over the past decade while paying not a dime in dividends — buying back stock hand over fist at prices below intrinsic value, including $338 million in the June quarter alone at an average of $103.79. The reason the stock trades at roughly 13 times forward earnings — a multiple the market normally reserves for banks and cyclical industrials — is that Mr. Market has decided the HOKA growth story is over.
Recent filings analysed: 8-K (2026-08-31), 10-Q (2026-07-30), DEF 14A (2026-07-24), 8-K (2026-07-23).
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