Core Insights - The company reported a net sales increase of 6.8% on a constant currency basis, with diluted earnings per share rising from $3.00 to $3.33 [1] Group 1: Brand Performance - HOKA brand revenue increased by 18.5%, totaling $628.9 million, while UGG brand sales rose by 4.9% to $1.305 billion [2] - Other brands experienced a significant decline of 55.5% in sales, falling to $23.2 million, partly due to the phase-out of Koolaburra brand operations [2] Group 2: Distribution Channels - Wholesale net sales increased by 6% to $864.6 million, while direct-to-consumer (DTC) net sales rose by 8.1% to $1.093 billion, with DTC comparable net sales up by 7.3% [3] - Domestic sales grew by 2.7% to $1.2 billion, while international sales saw a substantial increase of 15%, reaching $756.7 million [3] Group 3: Financial Metrics - Gross margin slightly decreased from 60.3% to 59.8%, while selling, general, and administrative expenses rose to $557 million from $535.3 million [4] - Operating income improved from $567.3 million to $614.4 million [4] - As of 31 December 2025, the company held cash and cash equivalents of $2.087 billion and inventories of $633.5 million, with no outstanding borrowings [4] Group 4: Capital Allocation - During the third fiscal quarter, the company repurchased approximately 3.8 million shares for $348.5 million at an average price of $92.36 per share [5] - Over the first nine months of fiscal year 2026, around eight million shares were bought back for a total of $813.5 million at an average price of $101.44 per share [5] Group 5: Future Outlook - For the full fiscal year ending 31 March 2026, the company projects net sales between $5.400 billion and $5.425 billion, with mid-teens percentage growth anticipated for HOKA and mid-single-digit increases for UGG compared to last year [6] Group 6: Management Commentary - The CEO attributed positive results to strategic initiatives and effective marketplace management, highlighting significant growth for HOKA in both US and international markets [7] - The CEO emphasized balanced growth in DTC and wholesale channels, with strong gross margins driven by high levels of full-price selling for both UGG and HOKA [8]

Core Insights - Deckers Outdoor Corp. reported record earnings in its third-quarter fiscal year 2026, leading to a 14.2% surge in stock price during after-hours trading, indicating strong investor confidence [1] - The company raised its full-year guidance for earnings per share (EPS) to between $6.80 and $6.85, surpassing previous guidance and analysts' consensus [2] - Net sales guidance was also increased to between $5.40 billion and $5.425 billion, exceeding prior estimates and analyst expectations [3] Financial Performance - HOKA brand experienced high-teens growth with approximately $629 million in revenue, while UGG brand sales increased by 4.9% to $1.305 billion, outperforming estimates [3] - The results reflect Deckers' ability to gain market share in performance footwear and maintain pricing power in its lifestyle segment, despite a challenging retail environment [4] Analyst Sentiment - Analysts may remain cautious despite the strong performance, citing concerns over the sustainability of HOKA's growth and a potential normalization in UGG's demand trajectory [5] - The stock's valuation may already reflect significant past execution, which could temper future expectations [6]

Core Insights - HOKA has launched the Speedgoat 7, an evolution of its popular trail running shoe, designed for performance across various terrains [1] - The Speedgoat 7 features upgraded traction, cushioning, and a new integrated gaiter attachment, enhancing its versatility and performance [1] - HOKA's "Run Wilder" campaign promotes the Speedgoat 7, showcasing its performance through real-world tests in Iceland [1] - The company is also hosting the HOKA Speedgoat 7 Vert Challenge, encouraging runners to achieve 7,000 feet of vertical gain in 30 days [1] Product Features - The Speedgoat 7 includes a super-critical foamed EVA midsole for enhanced energy return and a Vibram® Megagrip outsole with Traction Lugs for improved grip [1] - Key features also include updated lug orientation, a lightweight RPET woven textile upper, and a heel pull tab with reflective details [1] - The shoe is available in various sizes and colorways, with a retail price of $165 [1] Company Background - HOKA is a division of Deckers Brands, known for its innovative performance footwear and apparel [1] - The brand emphasizes constant innovation and collaboration with elite athletes to enhance its product offerings [1] - Deckers Brands has a history of over 50 years in building niche footwear brands into market leaders [1]

Core Insights - Deckers Outdoor Corporation (NYSE: DECK) experienced a significant increase in share prices, rising by 19.36% week-on-week, driven by strong earnings performance from its brands Ugg and Hoka [1] Financial Performance - For the third quarter of fiscal year 2026, Deckers reported a net income increase of 5.3% to $481 million, up from $456.7 million year-on-year, while net sales grew by 7.1% to $1.96 billion from $1.83 billion [2] - Ugg generated $1.3 billion in revenue, reflecting a 4.9% increase from $1.24 billion in the same period last year, while Hoka's net sales rose by 18.5% to $628.9 million from $530.9 million [3] Growth Outlook - Following the positive earnings results, Deckers raised its full fiscal year growth outlook, now expecting net sales to be between $5.4 billion and $5.425 billion, an increase from the previous estimate of $5.35 billion [4] - The outlook for diluted earnings per share was also revised upward to a range of $6.80 to $6.85, compared to the earlier forecast of $6.30 to $6.39 [4] Market Position - The company highlighted strong gross margins due to high levels of full-price selling from UGG and HOKA, indicating a positive trajectory for profitable growth in premium and differentiated brands within expanding market segments [5]

Core Viewpoint - Deckers has demonstrated solid growth despite skepticism from Wall Street, with significant stock performance since its IPO in 1993, showing a 9,660% increase, which is more than double that of Nike during the same period [1] Financial Performance - Deckers reported third-quarter revenue growth of 7.1% to $1.96 billion, surpassing the consensus estimate of $1.87 billion [5] - Hoka sales increased by 18.5% to $628.9 million, while Ugg sales rose by 4.9% to $1.31 billion [5] - Operating income grew by 8.3% to $614.4 million, resulting in an operating margin of 31%, and earnings per share (EPS) increased by 11% to $3.33, exceeding expectations of $2.76 [6] Market Dynamics - Deckers faced challenges from tariffs and weak consumer discretionary spending in the U.S., leading to a 46% decline in stock value over the past year [3][4] - However, the company showed improvement in both wholesale and direct-to-consumer channels, with domestic sales recovering to 2.7% growth and international sales up by 15% [7] Future Guidance - Management raised its fiscal year revenue guidance to $5.4 billion-$5.425 billion, with Hoka expected to grow by a mid-teens percentage and Ugg by a mid-single-digit percentage [8] - Projected EPS for the fiscal year is now $6.80-$6.85, up from previous guidance of $6.30-$6.39 [8] Valuation and Sentiment - Deckers' stock is currently trading at a price-to-earnings ratio of 17, which is attractive compared to the S&P 500's P/E ratio of around 28 [11] - The company has consistently beaten earnings estimates over the last four quarters, with a cumulative surprise of 26% [10] Strategic Outlook - The strong Q3 results suggest a solid outlook for fiscal 2027, with potential acceleration in growth due to the removal of a $110 million tariff headwind and successful new product launches [12]

Core Insights - Deckers Outdoor Corp. experienced a significant stock increase of 19.50 percent, closing at $119.34, driven by strong earnings and a positive outlook for fiscal year 2026 [1] Financial Performance - The company reported net income of $481 million for the third quarter ending December 31, marking a 5.3 percent increase from $456.7 million in the same quarter of the previous year [2] - Net sales rose by 7 percent to $1.957 billion, up from $1.827 billion year-on-year, attributed to strong demand for UGG and HOKA brands, with sales increasing by 4.9 percent and 18.5 percent respectively [3] Future Outlook - For the full fiscal year ending March 2026, Deckers expects net sales between $5.4 billion and $5.425 billion, with gross margins around 57 percent and diluted earnings per share targeted at $6.80 to $6.85 [5] - The CEO highlighted the strong performance of UGG and HOKA, emphasizing high levels of full-price selling and robust gross margins, indicating a trajectory for profitable growth in premium brands [4]

Core Insights - A rotation in the market is occurring as investors are moving away from large-cap tech stocks, such as Microsoft [1] Group 1 - The Q4 earnings season is characterized by volatility, highlighting a significant trend in investor behavior [1] - Investors are increasingly shunning large-cap technology stocks, indicating a shift in market sentiment [1]

Shares of Deckers Outdoor (NYSE: DECK) jumped on Friday after the apparel maker announced strong quarterly financial results. As of 2:27 p.m. EST, Deckers' stock price was up more than 17%. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Deckers Outdoor. Balanced growth The company, also known as Deckers Brands, saw its revenue grow by 7.1% year over year to $1.958 bil ...

Core Insights - Deckers Outdoor Corporation (DECK) reported strong third-quarter fiscal 2026 results, with both revenue and earnings exceeding estimates and showing year-over-year growth, leading to an increase in fiscal 2026 guidance [1][9] Financial Performance - DECK's quarterly earnings were $3.33 per share, surpassing the Zacks Consensus Estimate of $2.77 and up from $3.00 in the prior year [2] - Net sales increased by 7.1% year over year to $1.96 billion, exceeding the consensus estimate of $1.88 billion; on a constant-currency basis, net sales grew by 6.8% [2] - Gross profit rose by 6.2% year over year to $1.17 billion, with a gross margin of 59.8%, down from 60.3% in the previous year but above the estimate of 57.4% [3] - SG&A expenses increased by 4% year over year to $557 million, representing 28.5% of revenues, a decrease of 80 basis points from last year [4] - Operating income was $614.4 million, an increase of 8.3% from $567.3 million in the prior year, with an operating margin of 31.4%, up 40 basis points [4] Brand Performance - HOKA brand sales grew by 18.5% year over year to $628.9 million, exceeding projections, driven by strong performance in both direct-to-consumer and wholesale channels [5] - UGG brand net sales increased by 4.9% year over year to $1.31 billion, surpassing estimates, with growth supported by effective inventory management and consumer engagement [6] - Other Brands saw a significant decline in net sales, down 55.5% year over year to $23.2 million, attributed to the phase-out of Koolaburra's standalone operations [7] Channel and Geographic Insights - Wholesale net sales increased by 6% year over year to $864.6 million, while direct-to-consumer net sales rose by 8.1% to $1.09 billion [10] - Domestic net sales grew by 2.7% to $1.20 billion, while international net sales increased by 15% to $756.7 million [10] Future Outlook - For the fourth quarter of fiscal 2026, DECK anticipates mixed operating conditions, with HOKA expected to drive growth despite higher tariffs impacting gross margins [12][15] - HOKA revenues are projected to grow by 13-14% year over year, while UGG revenues are expected to remain flat compared to the prior year [13][14] - The company raised its full-year outlook for fiscal 2026, expecting net sales of $5.40-$5.425 billion, with HOKA anticipated to deliver mid-teens revenue growth and UGG expected to grow at a mid-single-digit rate [17] - The gross margin for fiscal 2026 is projected at 57%, with SG&A expenses expected to represent 34.5% of revenues [18] - Earnings per share are expected to be in the range of $6.80-$6.85, indicating a 7-8% increase from the previous year [19]

Core Viewpoint - Deckers Outdoor Corp (DECK) has demonstrated strong financial performance, particularly through its HOKA and UGG brands, leading to increased revenue expectations and a solid market presence [2][3][4]. Financial Performance - DECK reported a 7% increase in revenue for the third quarter, reaching $1.96 billion compared to the previous year [2][6]. - HOKA's revenue surged by 18% to $629 million, with balanced growth across direct-to-consumer and wholesale channels [2]. - The UGG brand achieved a record revenue of $1.3 billion, marking a 5% increase from the previous year [3]. Gross Margin and Pricing Strategy - DECK maintained high levels of full-price selling, contributing to a gross margin of 59.8%, which exceeded expectations [3]. - Piper Sandler set a price target of $95 for DECK, indicating a slight overvaluation based on the current stock price of $99.90 [6]. Revenue Expectations - The company raised its full-year revenue expectations to a range of $5.4 billion to $5.425 billion, reflecting confidence in continued growth [4][6]. Market Presence - DECK's stock has fluctuated between a low of $97 and a high of $100.26, with a recent price change of $2.28, a 2.34% increase [4]. - The company's market capitalization is approximately $14.82 billion, with a trading volume of 5,749,749 shares, highlighting strong market presence and investor interest [5].