Deckers Outdoor Corporation (NYSE:DECK) shares are trading higher Friday after the company reported better-than-expected third-quarter financial results and raised its fiscal-year 2026 guidance above estimates on Thursday after the market closed.
Earnings Beat on Strong UGG and HOKA Demand, Direct-to-Consumer Growth and Raised Guidance
Deckers reported earnings per share of $3.33, beating the consensus estimate of $2.80. In addition, the company reported revenue of $1.95 billion, beating the consensus estimate of $1.86 billion.
Deckers said third-quarter performance reflected record results driven by strong global demand across its UGG and HOKA brands.
Wholesale net sales increased 6.0% year over year to $864.6 million, while direct-to-consumer net sales rose 8.1% to $1.09 billion. Direct-to-consumer comparable net sales increased 7.3% during the quarter.
By brand, HOKA net sales increased 18.5% year over year to $628.9 million, while UGG net sales rose 4.9% to $1.31 billion. International net sales climbed 15.0% to $756.7 million, outpacing domestic growth of 2.7%.
The company raised its fiscal-year 2026 GAAP earnings per share guidance from between $6.30 and $6.39 to between $6.80 and $6.85, versus the consensus estimate of $6.39. Furthermore, Deckers raised its revenue guidance from $5.35 billion to between $5.40 billion and $5.42 billion, versus the consensus estimate of $5.36 billion.
The company said it expects full fiscal-year share repurchases to exceed $1.0 billion. During the third quarter, Deckers repurchased approximately 3.8 million shares for $348.5 million and had about $1.8 billion remaining under its authorization as of Dec. 31.
CEO Stefano Caroti said the company is on track to deliver another strong year, citing profitable growth across its two premium brands operating in expanding segments of the global marketplace.
Deckers Shares Surge Higher
DECK Price Action: At the time of writing, Deckers shares are trading 13.46% higher at $113.34, according to data from Benzinga Pro.
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