Deckers Stock Surges After Q3 Beat and Raised FY26 Outlook

Brand momentum is reshaping how markets view consumer resilience.

Deckers Brands (DECK) reported fiscal third-quarter 2026 results that significantly exceeded expectations, supported by strong global demand across its core brands. The earnings beat and raised full-year outlook prompted a sharp market reaction.

Key Points

• Deckers posted record Q3 revenue and earnings, well above analyst expectations.
• HOKA and UGG both delivered year-over-year growth, with international markets leading.
• The company raised fiscal 2026 guidance and reaffirmed plans for substantial share repurchases.

Strong Q3 Results Highlight Brand-Led Growth

Deckers reported record third-quarter revenue of $1.96 billion, up 7.1% from the prior year and ahead of the $1.87 billion analysts expected. Adjusted earnings reached $3.33 per share, an 11% increase year over year and well above the $2.76 consensus estimate.

HOKA continued to be the fastest-growing brand, with revenue rising 18.5% to $628.9 million. UGG also delivered a solid quarter, with revenue up 4.9% to a record $1.31 billion. Management cited balanced performance across direct-to-consumer and wholesale channels.

International markets were a key driver, with sales climbing 15% to $756.7 million, compared with domestic growth of 2.7%. The company said global demand supported full-price selling across brands.

Why Did Margins and Profits Hold Up?

Gross margin for the quarter came in at 59.8%, slightly below last year’s 60.3% but better than expected. Management attributed margin performance to high levels of full-price selling and a favorable brand mix, despite ongoing tariff-related pressures.

Operating income increased to $614.4 million from $567.3 million a year earlier, reflecting higher revenue and disciplined expense growth. SG&A expenses rose 4% year over year to $557 million, slower than revenue growth.

Deckers noted that while tariffs remain a headwind, pricing actions and inventory timing helped limit the net impact during the quarter.

Raised Guidance and Share Repurchases Added Fuel

Alongside the quarterly beat, Deckers raised its full-year fiscal 2026 outlook. The company now expects revenue between $5.4 billion and $5.425 billion, above prior guidance and the analyst consensus of $5.366 billion. Full-year earnings guidance was increased to $6.80 to $6.85 per share, exceeding expectations of $6.41.

Capital return was another focus for investors. Deckers said it plans to exceed $1 billion in share repurchases during fiscal 2026. Through the first nine months of the year, the company has already repurchased about 8 million shares worth $813.5 million, including $349 million in the third quarter alone.

The company ended the quarter with $2.1 billion in cash and equivalents, providing flexibility to fund buybacks while investing in growth.

What It Means for Investors

The market reaction to Deckers’ results reflects confidence in the durability of its brand portfolio. Strong HOKA growth and record UGG revenue showed that demand remained resilient across performance and lifestyle categories, even amid broader economic uncertainty.

Raising full-year guidance signaled management’s confidence in continued momentum into the fourth quarter and beyond. At the same time, the scale of planned share repurchases highlighted a focus on returning capital alongside growth.

Risks remain, including potential tariff impacts and sensitivity to consumer spending trends. Still, the quarter reinforced how brand strength, pricing discipline, and international expansion are shaping market expectations.

Conclusion

Deckers’ fiscal Q3 results delivered a clear beat-and-raise narrative, supported by strong HOKA and UGG demand, solid margins, and an expanded share repurchase plan—factors that combined to drive a sharp market response.

FAQs

Why did Deckers (DECK) stock rise after earnings?
Deckers shares rose after the company posted record Q3 revenue and earnings, exceeded analyst expectations, raised full-year guidance, and highlighted significant share repurchases.

How did HOKA and UGG perform in the quarter?
HOKA revenue increased 18.5% year over year, while UGG revenue rose 4.9% to a record $1.31 billion.

What was Deckers’ Q3 revenue and EPS?
Deckers reported Q3 revenue of $1.96 billion and adjusted earnings of $3.33 per share.

What is Deckers guiding for fiscal 2026?
Deckers now expects fiscal 2026 revenue of $5.4 billion to $5.425 billion and EPS of $6.80 to $6.85.

What did Deckers say about share repurchases?
Deckers said it plans to exceed $1 billion in share repurchases in fiscal 2026 and has already bought back over $800 million of shares year to date.

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