HOKA and UGG Power Deckers Outdoor to a Strong Quarterly Beat

Deckers Outdoor US2435371073

Deckers Outdoor Corporation has delivered a robust quarterly performance, surpassing market expectations in a challenging retail climate. The company's recent strength is primarily attributed to sustained demand for its HOKA running shoes and UGG brand boots, providing significant momentum.

For the fiscal third quarter ending December 2025 (part of FY 2026), the footwear and apparel group reported a 7% revenue increase to $1.96 billion. This result comfortably exceeded the consensus analyst forecast, which had anticipated revenue of approximately $1.87 billion.

Earnings per share (EPS) saw an 11% year-over-year jump, reaching a record $3.33. This figure notably outperformed the Wall Street estimate of around $2.82 per share. The company's improved operational efficiency is reflected in its gross margin, which expanded to 59.8%, indicating strong pricing power and effective cost management.

Brand Breakdown: HOKA Leads Growth

A deeper look at brand performance reveals the drivers behind the success. The HOKA brand continued its impressive trajectory, with revenue surging 18% to $629 million for the quarter. Meanwhile, the classic UGG brand contributed a solid performance, posting a record quarterly revenue of $1.3 billion.

International markets showed particular vigor, growing 15% and outpacing growth in the company's domestic U.S. market.

Management Raises Full-Year Guidance

Encouraged by these results, Deckers' management has raised its outlook for the full fiscal year 2026:

• Annual Revenue: The company now expects revenue in the range of $5.40 billion to $5.425 billion.
• Earnings Per Share: The EPS forecast has been lifted to a range of $6.80 to $6.85.

Furthermore, the company is utilizing its strong balance sheet, which holds $2.1 billion in cash and equivalents. During the past quarter, Deckers allocated approximately $349 million toward repurchasing its own shares.

Market Response and Trajectory

Investors responded positively to the earnings report and guidance upgrade. On Friday, significant buying activity pushed the share price higher. Deckers stock is currently quoted at $99.90, recovering a portion of the losses incurred over the preceding twelve-month period.

Despite this recent advance, the shares remain approximately 53% below their 52-week high from January of the previous year. Technical indicators suggest a potential near-term consolidation, with a Relative Strength Index (RSI) reading of 64.5 approaching overbought territory. However, the stock is benefiting from a fundamental reassessment driven by the upgraded annual forecast.

The key question for the remainder of the fiscal year is whether HOKA can maintain its high growth rate to sustainably propel the equity from its recent lows.