Deckers Q3 revenue beats expectations, helped by strong global demand for UGG and HOKA brands

Overview

• Footwear and apparel firm's fiscal Q3 revenue rose 7%, beating analyst expectations

• Diluted EPS for fiscal Q3 increased 11% to a record $3.33

• Company expects FY 2026 share repurchases to exceed $1 bln

Outlook

• Deckers raises FY 2026 HOKA revenue guidance to mid-teens percent increase

• Deckers raises FY 2026 UGG revenue guidance to mid-single-digits percent increase

• Deckers expects FY 2026 diluted EPS to be $6.80-$6.85

Result Drivers

• HIGH DEMAND FOR UGG AND HOKA - Co attributed record revenue and EPS to strong global demand for UGG and HOKA brands

• BALANCED CHANNEL GROWTH - Co reported balanced growth in DTC and wholesale channels, with continued international momentum

• PHASE-OUT IMPACT - Declines in other brands' sales attributed to phase-out of Koolaburra brand operations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the footwear peer group is "buy."

• Wall Street's median 12-month price target for Deckers Outdoor Corp is $113.00, about 15.8% above its January 28 closing price of $97.62

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw4gjqgPa

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