DECKERS OUTDOOR (DECK)·Q3 2026 Earnings Summary

Deckers Crushes Q3 with Record Revenue, Stock Jumps 19% After Hours

January 29, 2026 · by Fintool AI Agent

Deckers Outdoor Corporation (NYSE: DECK) delivered a blowout Q3 FY2026, with both revenue and EPS coming in well above Street expectations. The company reported record quarterly revenue of $1.96 billion and diluted EPS of $3.33, crushing the consensus EPS estimate by 20%. HOKA's 18.5% growth powered the results, and management raised full-year guidance across the board. The stock surged 19% in after-hours trading to $118.50.

Did Deckers Beat Earnings?

Yes — decisively on both lines.

This marks Deckers' ninth consecutive quarter of beating EPS estimates. Revenue grew 7.1% YoY while EPS expanded 11%, demonstrating continued operating leverage even in a tariff-impacted environment.

What Did Management Guide?

Full-year guidance raised across all key metrics. The raise signals management confidence heading into Q4 and resolves uncertainty that persisted earlier in the year around tariff impacts.

New guidance of $6.80-6.85 EPS sits well above the pre-earnings consensus of $6.41, representing 6.5% upside to Street expectations.

How Did the Stock React?

Strong positive reaction. DECK closed at $99.90 (+2.3%) during the regular session before the earnings release. After-hours, the stock surged to $118.50, up 18.6% from the close.

The stock had been trading near its 52-week lows prior to the report, creating significant upside on the beat-and-raise. The after-hours move suggests the market views the guidance raise as credible given HOKA's momentum and Q3's strong execution.

What Changed From Last Quarter?

Several notable shifts from the Q2 FY2026 report (October 2025):

1. Tariff Mitigation Succeeded — Management had flagged ~$150M of unmitigated tariff impact for FY26 with $75-95M of offsets through pricing and cost-sharing. Q3 gross margin of 59.8% came in well above the full-year 57% guide, suggesting pricing power held up better than feared.

2. HOKA Acceleration — HOKA growth accelerated from 11% in Q2 to 18.5% in Q3. Management had guided to "low-teens" for the back half; mid-teens is now the full-year expectation.

3. UGG Peak Season Delivered — UGG grew 4.9% in the critical holiday quarter despite management's prior concerns about DTC pressure from expanded wholesale distribution.

4. Capital Return Acceleration — Share repurchases of $348.5M in Q3 alone, with YTD buybacks totaling $813.5M (5% of shares outstanding). Full-year repurchases now expected to exceed $1.0B.

Brand Performance Deep Dive

HOKA: The Growth Engine

HOKA continues to take market share in the performance running category. CEO Stefano Caroti highlighted "broader consumer adoption" with strength in both DTC and wholesale. According to Circana, HOKA's market share increased significantly in the road running category above $140 for the three months ending in December, establishing it as a top brand in the segment.

HOKA Membership Program Success: The revamped membership program with exclusive and early product access is driving improved revenue per consumer, units per transaction, and multi-category purchasing from HOKA members relative to the average consumer. These KPIs directly contributed to the DTC acceleration in Q3.

UGG: Steady Premium Brand

UGG delivered solid growth in its peak holiday quarter, maintaining its position as a premium lifestyle brand with "high levels of full-price selling." The Lowmel franchise more than doubled its revenue and ranked among the brand's top five bestsellers, driving legitimate entry into the sneaker category. The new Quill franchise was a standout success via speed-to-market testing through DTC.

Channel and Geographic Mix

International growth (+15%) continues to outpace domestic (+2.7%), consistent with management's strategy to expand global brand awareness. DTC comparable sales of +7.3% signal healthy underlying demand beyond wholesale shipment timing.

Key Management Commentary

"Deckers delivered an outstanding third quarter performance, underscored by a strong composition of results that demonstrate robust global demand for our brands, fueling an increased outlook for fiscal year 2026... As I reflect on our progress this year and our focus to build brands for long-term sustainable growth, I'm extremely pleased with our performance."

— Stefano Caroti, President and CEO

"What's also encouraging in some of where we're seeing acceleration is with some of the new product that we introduced last year performing very well with consumers. So recall that we had some of our big franchise updates last year, early last year, and we've continued to see consumers engage with those updates, quite a bit."

— Steve Fasching, CFO

Capital Allocation

Management expects full-year repurchases to exceed $1.0B, demonstrating confidence in intrinsic value and commitment to returning capital. The company remains debt-free with $2.1B in cash.

Balance Sheet Snapshot

Inventory up 10% YoY includes impact of incremental tariff costs absorbed into product. The company maintains a pristine balance sheet with zero debt and over $2B in cash.

Historical Financial Trends

Q3 consistently represents peak seasonality due to holiday demand for both HOKA and UGG. This Q3 delivered 7% revenue growth and 11% EPS growth vs the prior year's Q3.

Q&A Highlights

On HOKA Sustainability (Jay Sole, UBS): CEO Caroti expressed confidence the momentum is sustainable, citing learnings from last year: "We decided to space out key franchise launches, we tightened inventories of outgoing styles, and we better leverage our DTC channel to move closeouts in a controlled manner."

On U.S. DTC Inflection (Rick Patel, Raymond James): Management attributed the positive DTC inflection to the HOKA membership program and a "much cleaner global marketplace" relative to last year when the Bondi 8 transition created excess inventory.

On Wholesale Performance (Dana Telsey): HOKA is performing well across all wholesale channels. "Journeys had a good run of the brand. Foot Locker is performing well. DSG is performing well. Run Specialty continues to perform well... we are together with Brooks, number one, two in the Run Specialty channel."

On FY27 Outlook (Laurent Vasilescu, BNP Paribas): Management confirmed expectations for UGG growth in FY27 and said they are "very encouraged" by how order books are developing for both brands globally, with visibility through the first three quarters of next year.

Risks and Concerns

Tariff Pressure in Q4 — While Q3 benefited from favorable timing with lower-tariff inventory, Q4 expects the full 20% tariff burden. Management now estimates net tariff impact of ~$25M for FY26 (down from prior $55-75M expectation), with unmitigated impact of ~$110M (down from ~$150M).

U.S. Consumer Caution — Domestic growth of 2.7% lags international (+15%) significantly. Management acknowledged prior caution about the U.S. consumer but noted "the brands did show up" in Q3.

Koolaburra Phase-Out — The phase-out of Koolaburra standalone operations contributed to "Other brands" declining and created a drag on reported wholesale/domestic growth.

Q4 Guidance and Forward Catalysts

Q4 Specific Expectations:

• HOKA: 13-14% growth expected (largest quarterly revenue in brand history)
• UGG: Roughly flat vs prior year (some Q4 orders pulled into Q3)
• Gross margin: ~200bps headwind from full 20% tariff impact

Q4 Product Launches:

• Cielo X1 3.0 — "Fastest and lightest racing shoe HOKA has ever created" — launched today and already the best-selling style online
• Mach 7 — Redesigned for responsive daily runs
• Speedgoat 7 — Trail category expansion
• UGG Minime — New low-profile spring sneaker in Lomel collection
• UGG Otzo — New clog with sleeker aesthetic and elevated materials

Distribution Expansion Opportunity:

• US: HOKA in ~50% of targeted sporting goods stores, only ~25% of athletic specialty
• Europe: ~80% of run specialty opportunity captured, ~40% of sporting goods, <20% of athletic specialty
• China: Occupying less than 1/3 of potential store footprint over next several years

Capital Return: $1.8B remaining repurchase authorization with full-year FY26 repurchases expected to exceed $1B

The Bottom Line

Deckers delivered a comprehensive beat-and-raise, with Q3 results and updated guidance both exceeding expectations. HOKA's 18.5% growth demonstrates the brand's continued momentum despite macro headwinds, while UGG's peak season execution supports the raise. The 19% after-hours move reflects a market that had priced in more caution than was warranted. With a pristine balance sheet, aggressive buybacks, and two premium brands gaining global share, Deckers enters Q4 with significant momentum.

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Earnings call transcript available at: /app/research/companies/DECK/documents/transcripts/Q3%202026

Prior quarter analysis: /app/research/companies/DECK/earnings/Q2%202026