Deckers Outdoor Corporation, listed on the NYSE under the ticker DECK, reported a strong financial showing for its third quarter, surpassing analyst projections in both earnings and revenue. The company's shares experienced a significant increase following the announcement, reflecting investor confidence in its performance and outlook.
The reported earnings per share (EPS) for the period stood at $3.33, outpacing the consensus estimate of $2.80. Revenue also posted a robust figure of $1.95 billion, exceeding the anticipated $1.86 billion. This financial achievement was attributed primarily to record sales momentum across Deckers' prominent brands, UGG and HOKA, which continue to capture growing consumer interest worldwide.
Within its sales channels, Deckers saw wholesale net sales climb 6.0% year-over-year to reach $864.6 million. Moreover, direct-to-consumer net sales demonstrated an even stronger expansion, advancing 8.1% to $1.09 billion, with comparable net sales increasing by 7.3%. These figures underscore the effectiveness of Deckers' retail strategy, blending traditional wholesale distribution with a growing emphasis on direct consumer engagement.
Examining brand-specific performance, the HOKA segment emerged as the faster-growing category, with net sales up 18.5% year-over-year, amounting to $628.9 million. Meanwhile, UGG net sales also registered an increase of 4.9%, reaching $1.31 billion. The company's reach in international markets showed marked growth, with sales expanding 15.0% to $756.7 million, surpassing the domestic growth rate of 2.7%. This highlights Deckers' successful penetration into global markets, particularly through its premium brand offerings.
In light of these encouraging results, Deckers adjusted its fiscal year 2026 guidance upward. The corporation now anticipates GAAP EPS in the range of $6.80 to $6.85, up from the prior guidance of $6.30 to $6.39, and above consensus expectations set at $6.39. Similarly, revenue projections have been raised slightly to between $5.40 billion and $5.42 billion, compared with an earlier target of $5.35 billion and consensus of approximately $5.36 billion.
Complementing its financial outlook, Deckers communicated plans for an aggressive share repurchase program. For the full fiscal year, the company expects to repurchase more than $1.0 billion in shares. During the recent quarter, Deckers repurchased around 3.8 million shares at a total cost of $348.5 million. As of December 31, the repurchase authorization retains about $1.8 billion available, reflecting substantial capacity to continue returning capital to shareholders.
Stefano Caroti, Chief Executive Officer of Deckers Outdoor Corporation, expressed confidence in the company’s trajectory, highlighting consistent profitable growth driven by its two premium brands while operating within expanding segments internationally. This strategic focus has evidently contributed to the company’s solid financial results and future outlook.
The market has responded favorably to Deckers' performance and guidance update. At the time of reporting, Deckers shares surged approximately 13.46%, reaching a trading price of $113.34. This strong price movement reflects investors' positive reception and optimistic sentiment toward the company’s prospects.