Shares for Deckers Brands soared over 10 percent on Thursday after the market close following the footwear company’s latest earnings report.
The Goleta, Calif.-based company reported net sales in the third quarter of fiscal 2026 increased 7.1 percent to $1.96 billion compared to $1.83 billion the same time last year. Net income for the third quarter was $481.15 million, or $3.33 per diluted share, up from $456.73 million, or $3.00 per diluted share, the prior year.
These results beat analysts’ expectations, which called for net sales in Q3 to be in the range of $1.85 billion to $1.9 billion, with diluted earnings per share expected to be in the range of $2.67 to $2.88, according to Yahoo Finance.
By brand, Ugg led the way with net sales of $1.31 billion, a 4.9 percent increase compared to $1.24 billion the same time last year. At Hoka, net sales increased 18.5 percent to $628.9 million compared to $530.9 million last Q3.
Deckers’ “Other” brands division – which includes the Teva and Ahnu brands – saw net sales decrease 55.5 percent to $23.2 million compared to $52.1 million. The company noted that the net sales decline in “Other” brands division includes the impact from the phase-out of the Koolaburra brand standalone operations.
As for wholesale, Deckers said that net sales in the channel increased 6 percent to $864.6 million compared to $815.8 million, while the direct-to-consumer channel saw net sales rise 8.1 percent to $1.09 billion compared to $1.01 billion the same time last year.
By region, the company noted that net sales domestically increased 2.7 percent to $1.2 billion compared to $1.17 billion in Q3 2025. International net sales in the period jumped 15 percent to $756.7 million compared to $657.9 million.
Stefano Caroti, president and chief executive officer of Deckers Brands, said in a statement on Thursday that the company produced record revenue and earnings per share in the third quarter, driven by the significant global demand for Ugg and Hoka.
“Our strategic marketplace management fueled balanced growth in DTC and wholesale, inclusive of continued international momentum as well as healthy growth in the U.S. across both channels,” Caroti noted. “Ugg and Hoka each delivered high levels of full-price selling, resulting in strong gross margins.”
Looking ahead, the company is raising its guidance for the full fiscal year 2026. Deckers now expects net sales for the year to be in the range of $5.4 billion to $5.43 billion, with diluted earnings per share now expected to be in the range of $6.80 to $6.85.
This is up from the guidance given in the second quarter, which called for net sales for the year to be approximately $5.35 billion, with diluted earnings per share in the range of $6.30 to $6.39.
The company also noted that Hoka is now expected to increase by a mid-teens percentage versus last year, which was previously guided to increase by a low-teens percentage. And Ugg is now expected to increase by a mid-single-digit percentage versus last year, which was previously guided to increase by a low-to-mid-single-digit percentage.
“We are on track to deliver another incredible year, with profitable growth at two premium and differentiated brands that operate in expanding segments of the global marketplace,” the CEO added.
