Deckers Surprises with Q3 Earnings, Stock Jumps 19%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Earnings Surprise: Deckers' stock surged 19% following its Q3 report, with revenue growth of 7.1% to $1.96 billion, surpassing Wall Street's expectations of $1.87 billion, showcasing the company's robust performance in a challenging environment.
- Strong Brand Performance: Hoka's sales soared by 18.5% to $628.9 million, while Ugg also saw a solid 4.9% increase to $1.31 billion, indicating Deckers' success in product innovation and market demand.
- Improved Profitability: The company reported an 8.3% increase in operating income to $614.4 million, achieving an operating margin of 31%, with earnings per share rising 11% to $3.33, exceeding analyst expectations of $2.76, demonstrating sustained profitability enhancement.
- Optimistic Outlook: Deckers raised its revenue guidance for fiscal 2027 to between $5.4 billion and $5.425 billion, with upward revisions for Hoka and Ugg growth projections, reflecting management's confidence in future growth prospects.
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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: 99.900
Low
81.00
Averages
111.50
High
157.00
Current: 99.900
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 Outdoor Corp. Shares Surge 19.5% Following Strong Earnings
- Strong Performance: Deckers Outdoor Corp. reported a third-quarter net income of $481 million, reflecting a 5.3% year-over-year increase, showcasing the company's robust performance and growth potential in the market.
- Sales Growth: The company achieved a 7% year-over-year increase in net sales, reaching $1.957 billion, primarily driven by strong demand for its UGG and HOKA brands, which grew by 4.9% and 18.5% respectively, indicating enhanced brand competitiveness.
- Optimistic Outlook: Deckers expects net sales for the fiscal year ending March 2026 to range between $5.4 billion and $5.425 billion, with gross margins around 57%, demonstrating confidence in future growth prospects.
- Earnings Expectations: The company targets diluted earnings per share between $6.80 and $6.85, reflecting its ongoing profitability and market appeal, further solidifying investor confidence.
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Deckers Surprises with Strong Q3 Earnings Report
- Significant Revenue Growth: Deckers reported a 7.1% increase in Q3 revenue to $1.96 billion, surpassing market expectations of $1.87 billion, demonstrating resilience and a recovery in market demand amid challenging conditions.
- Strong Brand Performance: Hoka sales surged by 18.5% to $628.9 million, while Ugg also saw a solid 4.9% increase to $1.31 billion, indicating positive consumer response to new products and strengthening brand market positions.
- Improved Profitability: Operating income rose by 8.3% to $614.4 million, achieving an operating margin of 31%, with earnings per share increasing by 11% to $3.33, exceeding expectations of $2.76, reflecting success in cost control and sales growth.
- Optimistic Outlook: Management raised fiscal 2027 revenue guidance to $5.4 billion-$5.425 billion, projecting mid-teens growth for Hoka and mid-single-digit growth for Ugg, showcasing confidence in future growth prospects.
Continue Reading