DECK Q3 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Revenue: $1.96 billion, up 7% year-over-year.
HOKA Revenue: Increased 18% to $629 million.
UGG Revenue: Grew 5% to a record $1.3 billion.
Gross Margin: 59.8%, better than expected due to lower tariffs and reduced promotions.
Diluted Earnings Per Share (EPS): $3.33, an 11% increase from the previous year.
Share Repurchase: Approximately $349 million in Q3, with a total of $1 billion expected for fiscal year 2026.

2. Strategic Updates and Business Highlights

Brand Performance: Both HOKA and UGG showed strong growth, with balanced contributions from direct-to-consumer (DTC) and wholesale channels.
HOKA Initiatives: Launched a revamped membership program to enhance consumer loyalty, resulting in improved revenue per consumer and multi-category purchases.
UGG Strategy: Focused on maintaining high in-stock levels for wholesale partners and expanding product offerings, including a successful 365 initiative and new styles.
Market Positioning: UGG is positioned as a premium lifestyle brand, while HOKA is expanding into lifestyle segments alongside performance.

3. Forward Guidance and Outlook

Revenue Guidance: Increased full-year revenue expectations to $5.4 billion to $5.425 billion.
HOKA Growth: Expected mid-teens revenue growth for HOKA.
UGG Growth: Anticipated mid-single-digit growth for UGG.
Gross Margin Projection: Now expected to be approximately 57%, improved from previous guidance.
EPS Guidance: Revised to a range of $6.80 to $6.85, reflecting a 7% to 8% increase over the prior year.

4. Bad News, Challenges, or Points of Concern

Tariff Impact: Anticipated net tariff impact for fiscal 2026 is around $25 million, with potential future pressures if tariffs remain.
Market Conditions: While the brands performed well, there remains caution regarding the overall U.S. consumer environment and economic conditions.
Koolaburra Phaseout: The decline in revenue from the Koolaburra brand impacted overall metrics, although UGG and HOKA remained positive.

5. Notable Q&A Insights

HOKA Performance: The positive inflection in HOKA's DTC business was attributed to improved product launches and a cleaner marketplace.
Consumer Engagement: Strong consumer response to product updates and the effectiveness of the HOKA membership program were highlighted as key drivers of growth.
Wholesale Strategy: UGG's wholesale strategy is focused on balanced growth across channels, with a successful shift to prioritize DTC in response to strong demand.
Future Growth: Management expressed confidence in sustaining growth for both brands, with plans for continued product innovation and market expansion, particularly in international markets.

Overall, Deckers Brands reported a strong third quarter, with both HOKA and UGG performing well and an optimistic outlook for the remainder of fiscal 2026, despite some challenges related to tariffs and market conditions.

DECK — Deckers Outdoor Corporation