Deckers Outdoor reported a 14.2% increase in its share price in after-hours trading following the release of its Q3 FY2026 results. The company achieved record quarterly revenue and earnings per share, driven by sustained demand across its key footwear brands. This performance significantly exceeded consensus expectations and marked one of the strongest quarterly showings in Deckers’ history.

Deckers’ UGG brand generated $1.305 billion in third-quarter revenue, up 4.9% year-over-year, while HOKA posted a high-teens percentage increase to reach $629 million. The combined growth of these two flagship labels accounted for more than 80% of total company sales. Management credited HOKA’s expanding global distribution network and continued consumer enthusiasm for performance footwear for the outsized gains.

Following the quarter’s results, Deckers lifted its full-year adjusted EPS forecast to a range of $6.80–$6.85 from a prior range of $6.30–$6.39. Net sales guidance was also increased to $5.40–$5.425 billion versus the previous $5.35 billion estimate. These upward revisions reflect stronger-than-expected wholesale orders and direct-to-consumer growth, particularly during the holiday season rollout.

Despite the blowout quarter and upgraded outlook, several sell-side analysts warned of near-term headwinds. They pointed to a $110 million tariff impact forecast for FY2026, potential deceleration as the law of large numbers takes effect, and lingering macroeconomic uncertainty. Nevertheless, Deckers’ ability to maintain a 59.8% gross margin underscored its pricing power and operational efficiency, factors that could mitigate some external risks.