Deckers Outdoor Soars 19% on Strong Earnings, Fueled by UGG and HOKA Brands
Shares of Deckers Outdoor Corp. (NYSE: DECK) skyrocketed on Friday, closing up 19.5% at $119.34, after the footwear and apparel giant posted stronger-than-expected quarterly results and raised its full-year guidance.
The surge marks one of the most significant single-day gains for a major consumer stock this year, reflecting investor confidence in the company's dual-brand strategy. For the third quarter ended December 31, Deckers reported net income of $481 million, a 5.3% increase from the $456.7 million recorded in the same period last year.
Net sales rose 7% year-over-year to $1.957 billion, powered by its two flagship brands. UGG, the classic bootmaker, saw net sales increase 4.9%, while the running and lifestyle brand HOKA continued its explosive growth with an 18.5% jump in sales. This performance underscores a successful shift in the company's portfolio, moving beyond seasonal dependence on UGG to establish HOKA as a sustained growth engine.
"Both UGG and HOKA achieved high levels of full-price selling, driving exceptional gross margins," said Deckers President and CEO Stefano Caroti. "We are positioned for another record year, fueled by profitable growth from two premium, differentiated brands operating in expanding global markets."
Looking ahead, Deckers provided an upbeat forecast for its full fiscal year 2026, ending March 31. The company expects net sales between $5.4 billion and $5.425 billion, with gross margins projected around 57%. Diluted earnings per share are targeted in the range of $6.80 to $6.85.
The results have sparked a broader conversation about resilience in the consumer discretionary sector. Analysts note that Deckers' ability to maintain premium pricing and robust demand, particularly for HOKA, contrasts with the promotional environment challenging many other retailers.
Market Voices: Investor Reactions
Michael R., Portfolio Manager: "This wasn't just a beat; it was a masterclass in brand management. HOKA's momentum is undeniable, and it's effectively de-risking the entire business. The guidance confirms this isn't a fluke but a sustainable trajectory."
Sarah Chen, Retail Analyst: "The numbers are impressive, but the 19% pop feels like a catch-up. The market had been undervaluing HOKA's structural growth story. Today's move prices in more of that future potential, but execution on international expansion for HOKA will be key to justifying this new level."
David K., Independent Trader: "It's pure euphoria. A 20% jump on a single earnings report? This reeks of a short squeeze and momentum chasing. Let's see if they can maintain these margins when the economic tide truly turns. Everyone's a genius in a bull market."
Priya Sharma, Long-term Shareholder: "As a longtime investor, this validates the patience required. The transformation from a 'UGG company' to a diversified powerhouse with HOKA has been years in the making. The CEO's commentary on full-price selling is the most critical takeaway—it speaks to incredible brand strength."