Deckers Defies Doubters: Hoka and Ugg Power Record Q3, Sending Shares Skyward
Wall Street's skepticism about Deckers Outdoor Corp. has been firmly put to rest—at least for now. The parent company of the Hoka and Ugg brands delivered a third-quarter earnings report that not only beat forecasts but also painted a picture of resilient, balanced growth across its powerhouse labels, sending its stock soaring in after-hours trading.
CEO Stefano Caroti pointed to "exceptional" global performance, with Hoka revenue jumping 18% and Ugg growing 5% year-over-year. This growth was achieved through both direct-to-consumer (DTC) and wholesale channels, with international markets surging 15% collectively for the brands. Crucially, Caroti emphasized this was done while maintaining "high levels of full price selling," signaling strong brand health and consumer demand.
The results directly addressed key investor anxieties, particularly around Ugg's DTC trends, which had shown signs of softening. Caroti detailed a strategic playbook: using DTC for rapid product testing and feeding insights to wholesale partners, while ensuring retail accounts were well-stocked for peak season. The new Ugg Quill franchise was highlighted as a standout success from this approach.
For Hoka, the narrative remains one of explosive expansion. Caroti outlined significant runway ahead, noting the brand is in only about a quarter of relevant U.S. athletic specialty stores and is still in early days internationally, with Europe and China cited as major growth frontiers. A revamped membership program aims to deepen consumer loyalty.
Analyst reactions, while positive, retained a note of caution. Many maintained neutral ratings, acknowledging the strong quarter but looking for sustained momentum in an uncertain economic climate. BTIG's Janine Stichter found the "more balanced channel growth" encouraging, while Guggenheim's Simeon Siegel noted improved tariff outlooks. The consensus: Deckers has quieted the naysayers, but the long-term test of maintaining Hoka's hyper-growth and fully revitalizing Ugg continues.
What Readers Are Saying
Marcus Chen, Retail Analyst in Boston: "This quarter proves the doubters were premature. Deckers isn't a one-trick pony with Hoka; it's demonstrating masterful portfolio management. The strategic use of DTC data to fuel wholesale success is a textbook case of modern brand execution."
Sarah Jennings, Long-Time Investor in Denver: "As a shareholder, I'm thrilled but not surprised. The product innovation at Hoka is relentless, and Ugg has successfully evolved beyond its classic boot. The international numbers are the real story here—the global appetite for these brands is far from saturated."
Leo Grant, Former Footwear Buyer in New York: "Let's not get carried away. One good quarter doesn't erase structural issues. Ugg is still overly reliant on seasonal trends, and Hoka's growth is bound to normalize. The stock pop feels reactive. The 'premium lifestyle' positioning is marketing fluff until we see consistent, non-promotional DTC growth."
Priya Mehta, Marathon Runner & Blogger in London: "The Hoka membership revamp is a smart move. As a consumer, early access and rewards build a real community. Their expansion plan makes sense—every time I run a race here in Europe, I see more Hokas. They're capturing the casual and serious runner alike."