Deckers Outdoor Reports Record Profit in Q3 Driven by UGG and HOKA Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
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Source: seekingalpha
- Strong Sales: Deckers Outdoor's Q3 HOKA footwear sales reached $628.9 million, an 18.5% increase that surpassed the $583.9 million estimate, demonstrating robust performance in the rapidly growing athletic footwear market.
- UGG Sales Growth: UGG sales totaled $1.305 billion, up 4.9% and exceeding the $1.24 billion forecast, further solidifying Deckers' leadership in the premium footwear segment.
- Revenue and Profit Increase: Total revenue rose 7.1% to $1.958 billion, $88 million above expectations, with adjusted earnings of $3.33 per share beating estimates by $0.56, showcasing strong profitability.
- Optimistic Outlook: Deckers raised its FY26 EPS guidance to between $6.80 and $6.85, up from the previous $6.30 to $6.39 range, reflecting positive expectations for HOKA and UGG sales growth.
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Analyst Views on DECK
Wall Street analysts forecast DECK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DECK is 111.50 USD with a low forecast of 81.00 USD and a high forecast of 157.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
9 Buy
9 Hold
3 Sell
Moderate Buy
Current: 97.620
Low
81.00
Averages
111.50
High
157.00
Current: 97.620
Low
81.00
Averages
111.50
High
157.00
About DECK
Deckers Outdoor Corporation designs, markets, and distributes footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. Its segments include UGG brand, HOKA brand and Other brands. The UGG brand segment provides premium footwear, apparel and accessories. The HOKA brand segment’s products include running, trail, hiking, fitness, and lifestyle footwear offerings, as well as select apparel and accessories. Its Other brands segment consists of Teva brand, AHNU brand, and Koolaburra brand. Its Teva brand includes a variety of footwear options, from classic sandals and shoes to boots. The Koolaburra brand is a casual footwear fashion line that uses plush materials. Its AHNU brand’s footwear products fuse high-performance technology for everyday wear. Its portfolio of brands includes UGG, HOKA, Teva, and AHNU. It sells its products through domestic and international retailers and international distributors in its wholesale channel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Deckers Reports Strong Q3 Results, Raises 2026 Outlook
- Significant Revenue Growth: Deckers reported Q3 revenue of $1.96 billion, a 7% year-over-year increase, with HOKA revenue up 18% and UGG up 5%, reflecting strong global demand and prompting an optimistic outlook for fiscal 2026.
- Margin Improvement: The gross margin for Q3 was 59.8%, exceeding expectations due to lower-than-expected tariff impacts, with guidance for fiscal 2026 gross margin raised to approximately 57%, enhancing profitability and competitive positioning.
- Shareholder Return Program: Deckers repurchased approximately $349 million in shares during the quarter and plans to repurchase over $1 billion for the fiscal year, demonstrating confidence in future cash flows and commitment to shareholders.
- International Market Expansion: HOKA's market share has significantly increased internationally, particularly in Europe and Asia, with expectations for continued brand growth and market penetration, further solidifying Deckers' position in the global market.
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