Deckers Earnings Scorecard: Nearly Straight A's Send Stock Soaring 15%

"Deckers Outdoor ( NYSE: DECK) reported fiscal Q3 2026 results that crushed expectations, sending shares up 15% as investors rewarded the premium footwear maker's ability to grow profitably despite tariff headwinds and a promotional retail environment. The company delivered diluted EPS of $3.33, beating consensus estimates of $2.77 by 20%, while revenue of $1.96 billion topped forecasts by roughly $90 million."

"HOKA accelerated meaningfully, with U.S. direct-to-consumer showing positive inflection after recent softness. CEO Stefano Caroti credited a cleaner global marketplace with tighter inventory management, an improved product pipeline including the just-launched Cielo X1 3.0, and the revamped HOKA membership program driving higher revenue per consumer. The brand maintained full-price selling while competitors discounted heavily. UGG demonstrated remarkable pricing power, maintaining full-price selling throughout the holiday season while absorbing tariff impacts."

"Management reduced expected net tariff impact to $25 million for FY2026 from an unmitigated $110 million through pricing actions that have not materially affected demand. The brand achieved balanced 5% growth across both DTC and wholesale channels. Gross margin expansion to 59.8% surprised positively due to favorable tariff timing and the company's ability to pass through price increases without demand destruction."

Deckers reported fiscal Q3 2026 diluted EPS of $3.33, beating estimates by 20%, and revenue of $1.96 billion, topping forecasts by about $90 million. The company has exceeded expectations for 10 consecutive quarters with an average surprise of 36%. HOKA accelerated, driven by improved U.S. DTC performance, tighter inventory, a stronger product pipeline including the Cielo X1 3.0, and a revamped membership program that raised revenue per consumer. UGG maintained full-price selling, absorbed tariffs while reducing expected net tariff impact to $25 million, and grew about 5% across DTC and wholesale. Gross margin expanded to 59.8% and shares rose 15%.

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