Deckers Brands reports 7.1% increase in Q3 net sales

On a changeless currency basis, nett income roseate by 6.8%. The company's fiscal results for the quarter, which ended connected 31 December 2025, besides showed an betterment successful diluted net per share, rising from $3.00 to $3.33.

The HOKA moving shoes marque contributed importantly to this maturation with an 18.5% summation successful revenue, totalling $628.9m, portion the flagship UGG marque income roseate by 4.9% to scope $1.305bn. However, the company's different brands experienced a 55.5% diminution successful sales, falling to $23.2m, partially owed to the phase-out of Koolaburra marque standalone operations.

In presumption of organisation channels, wholesale nett income climbed by 6% to $864.6m, and direct-to-consumer (DTC) nett income accrued by 8.1% to $1.093bn, with DTC comparable nett income rising by 7.3%. Geographically, home income experienced a mean summation of 2.7%, totalling $1.2bn, portion planetary income saw a much important maturation of 15%, reaching $756.7m.

The institution reported a flimsy alteration successful gross borderline from 60.3% to 59.8%. Selling, wide and administrative expenses roseate to $557m compared to $535.3m from the erstwhile year. Operating income improved from $567.3m to $614.4m.

On the equilibrium expanse astatine 31 December 2025, Deckers Brands held currency and currency equivalents of $2.087bn and inventories amounting to $633.5m, reflecting incremental tariffs' impact. The institution maintained its presumption of having nary outstanding borrowings.

Regarding superior allocation strategy during the 3rd fiscal quarter, Deckers Brands repurchased astir 3.8m shares of its communal banal for a full expenditure of $348.5m astatine an mean terms of $92.36 per share. Over the archetypal 9 months of fiscal twelvemonth 2026, the institution bought backmost astir 8 cardinal shares for a cumulative sum of $813.5m astatine an mean terms of $101.44 per share.

For its afloat fiscal twelvemonth ending 31 March 2026, Deckers Brands released an updated fiscal outlook projecting nett income betwixt $5.400bn and $5.425bn, with anticipated mid-teens percent maturation for HOKA and mid-single-digit increases for UGG compared to past year’s figures.

During the net call, Stefano Caroti, CEO of Deckers Brands, attributed these affirmative results to strategical initiatives and effectual marketplace absorption that bolstered some HOKA and UGG brands’ performances successful US and planetary markets, a maturation helium described arsenic peculiarly important for HOKA.

Caroti said: “Our strategical marketplace absorption fuelled balanced maturation successful DTC and wholesale, inclusive of continued planetary momentum arsenic good arsenic steadfast maturation successful the US crossed some channels. UGG and HOKA each delivered precocious levels of full-price selling, resulting successful beardown gross margins. We are connected way to present different unthinkable year, with profitable maturation astatine 2 premium and differentiated brands that run successful expanding segments of the planetary marketplace.”