Deckers Outdoor Soars on Strong Quarterly Results, Lifts Full-Year Outlook
NEW YORK – Shares of Deckers Outdoor Corp. (NYSE: DECK) surged more than 17% in afternoon trading Friday, following the release of a stronger-than-expected quarterly earnings report that highlighted resilient consumer demand for its premium footwear brands.
The parent company of UGG and HOKA reported fiscal third-quarter revenue of $1.96 billion, a 7.1% increase year-over-year. More impressively, operating income rose 8% to $614.4 million, with earnings per share climbing 11% to $3.33, aided by the company's ongoing share repurchase program.
"Our results reflect the power of managing our brands in a premium position," said CEO Stefano Caroti in a statement. "Both UGG and HOKA achieved significant growth through full-price selling, which supported strong gross margins. We are seeing balanced growth across our direct and wholesale channels, both domestically and internationally."
The performance stands in contrast to a broader retail sector that has often relied on promotions to move inventory. Deckers' success, particularly with the running brand HOKA's continued momentum and UGG's sustained appeal, prompted management to raise its full-year guidance. The company now expects revenue between $5.4 billion and $5.425 billion and EPS in the range of $6.80 to $6.85.
Analysts point to Deckers' brand differentiation as a key insulator against economic headwinds. "In a choppy consumer environment, Deckers is demonstrating that strong brands with loyal followings can still command premium prices," said market analyst Rebecca Shaw of Veritas Insights. "HOKA's innovation pipeline and UGG's expansion beyond its classic boot are creating two durable growth engines."
Market Reaction & Investor Commentary
The sharp stock move reflects relief and optimism after months of investor caution regarding consumer spending. We gathered immediate reactions from the investing community:
"This report is a masterclass in brand management," said Michael Torres, a portfolio manager at Horizon Capital. "They're growing volume without eroding margin—that's the holy grail in retail right now. It validates the thesis that focused, brand-centric companies are winning."
"Let's not get carried away," countered Lisa Chen, an independent investor and frequent market commentator. "A single quarter of full-price selling is not a trend. The entire athleisure and comfort market is saturated. This feels like a victory lap before the next downturn. The guidance raise seems overly optimistic to me."
"As a long-term shareholder, I'm thrilled but not surprised," added David Miller, a retired teacher and retail investor. "I've watched this company transform from a one-brand wonder into a multi-brand powerhouse. The HOKA growth story is still in its middle innings."
Deckers' performance will likely put a spotlight on the upcoming reports from other athletic and apparel rivals, as investors gauge whether this strength is company-specific or indicative of a broader sector recovery.