Deckers Outdoor Corp. (DECK) delivered a knockout third quarter, proving once again that consumers can't get enough of their UGG boots and HOKA sneakers.
The Numbers: Deckers posted earnings of $3.33 per share, crushing the Street estimate of $2.80 by 18.89%. Revenue came in at $1.96 billion, comfortably ahead of the $1.87 billion analysts were expecting.
"Deckers produced record revenue and earnings per share in the third quarter, driven by the significant global demand for UGG and HOKA," said CEO Stefano Caroti.
The secret sauce? Full-price selling. Both UGG and HOKA managed to move product without heavy discounting, which helped deliver strong gross margins. That's exactly what you want to see—people willing to pay what you're asking.
"We are on track to deliver another incredible year, with profitable growth at two premium and differentiated brands that operate in expanding segments of the global marketplace," Caroti added.
Looking Ahead: The company raised its fiscal 2026 GAAP EPS guidance to between $6.80 and $6.85, well above the $6.39 analyst estimate. Revenue expectations also got a boost, now projected between $5.4 billion and $5.43 billion versus the $5.37 billion consensus.
Stock Movement: Deckers shares surged 12.11% to $112 in Thursday's after-hours trading.
