Deckers Stock Soars 19% After Blowout Earnings and Raised Guidance
Deckers Outdoor Corporation, the company behind footwear brands HOKA and UGG, has seen its stock surge by 19% after a strong third-quarter earnings report. Despite a 46% decline over the past year, the firm's long-term growth remains striking—its shares have climbed by 9,660% since its 1993 IPO.
The latest earnings report revealed a 7.1% revenue increase to $1.96 billion for the quarter. HOKA sales jumped by 18.5%, while UGG sales grew by 4.9%. Operating income also rose by 8.3% to $614.4 million, lifting the operating margin to 31%. Earnings per share climbed by 11% to $3.33, surpassing analyst expectations.
Deckers has now beaten earnings estimates for four straight quarters, with an average surprise of 26%. The company also raised its full-year guidance, which helped drive the recent stock rally. Despite these gains, the stock trades at a price-to-earnings ratio of 17—well below the S&P 500's average of 28.
Over the past year, Deckers faced challenges from tariffs and weaker consumer spending in the U.S., leading to a significant stock drop. However, analysts predict a stronger fiscal 2027, with growth potentially accelerating due to new product launches and easing tariff pressures. The company's success stems largely from its strategic acquisitions of HOKA and UGG, which it developed into leading global brands.
Despite recent volatility, Deckers' stock performance has outperformed Nike's over the same period, reinforcing its position as a standout in the footwear sector.
Deckers continues to build on its long-term growth, driven by strong brand performance and consistent earnings beats. With an improved outlook for fiscal 2027, the company appears well-positioned to overcome recent setbacks and sustain its market momentum.
