Deckers Outdoor Soars on HOKA and UGG Momentum, Raises Full-Year Outlook
This analysis is based on the company's third-quarter fiscal 2026 earnings call and financial release.
GOLETA, Calif. – Deckers Outdoor Corporation (NYSE: DECK) delivered a standout quarter, with its HOKA and UGG brands powering significant revenue growth and leading management to raise its full-year financial forecast. The performance underscores a successful strategy of disciplined inventory management, segmented product innovation, and a growing direct-to-consumer (DTC) footprint.
On the earnings call, President and CEO Stefano Caroti highlighted a "sustainable" trajectory for HOKA, attributing success to spaced-out franchise launches and a "cleaner" marketplace with less discounting pressure. "We see opportunities across all regions, channels, and categories," Caroti stated, expressing confidence in the brand's forward momentum.
A significant focus was HOKA's expansion beyond its performance running roots into the lifestyle category. Early consumer response to new offerings like the Stinson One7 and Bondi Mary Jane has been positive, signaling successful diversification. "Performance remains at our core, but lifestyle represents a substantial growth runway," Caroti explained.
For UGG, the company sees broad-based potential. CFO Steven Fasching noted that strong wholesale demand in the first half of the year was a strategic choice, supported by lean inventories. Both brands saw a positive inflection in U.S. DTC performance, bolstered by HOKA's membership program, which increased customer engagement and multi-category purchases.
Perhaps most telling was the discussion on pricing power. Caroti indicated plans for "selective and strategic" price increases, typically tied to product upgrades—a move Fasching said the quarter's results validated. Sell-through rates continued to outpace sell-in to retailers, a key indicator of brand health and consumer pull.
Analyst & Investor Commentary:
Michael Torres, Senior Analyst at Clearwater Capital: "Deckers is executing flawlessly in a tricky retail environment. The HOKA lifestyle pivot isn't just an experiment; it's becoming a material contributor. Their ability to maintain premium pricing while growing volume is a textbook case of brand strength."
Sarah Chen, Portfolio Manager at Summit Growth Partners: "The raised guidance speaks volumes. This isn't a one-quarter story. The DTC channel leverage and inventory discipline have built a more resilient model. UGG's year-round relevance and HOKA's global scalability make this a durable compounder."
David R. Miller, Editor of 'The Skeptical Investor' Newsletter: "Let's not get carried away. Everyone is cheering the 'clean inventory,' but that often just means they under-produced. What happens when the running shoe craze cools? HOKA is now the darling, but fashion is fickle. This stock is priced for perfection, leaving zero room for error."
Lisa Hammond, Retail Consultant and former buyer: "As a buyer, seeing HOKa consistently as the #2 brand in key athletic specialty doors is massive. It shows they've moved from a niche player to a mainstream powerhouse. Their wholesale strategy is smart—they're not over-distributing, which protects the brand's premium aura."
For the complete financial details and transcript, please see the company's official earnings release and SEC filings.