Deckers Brands achieves record revenue driven by Hoka and Ugg momentum

US-based footwear company Deckers Brands has reported positive revenue and earnings for its third fiscal quarter ended December 31, 2025. The Goleta-based group saw net sales increase 7.1 percent to 1.96 billion dollars, and up 6.8 percent on a constant currency basis.

Stefano Caroti, president and chief executive officer, noted that the performance was fueled by significant global demand for the Ugg and Hoka brands. Caroti highlighted that both labels delivered high levels of full-price selling, contributing to a robust gross margin of 59.8 percent for the period.

Brand and channel performance

The Hoka brand continued its strong trajectory, with net sales increasing 18.5 percent to 628.90 million dollars. Ugg also saw growth, with sales rising 4.9 percent to 1.31 billion dollars. Conversely, other brands in the portfolio experienced a 55.5 percent decline to 23.20 million dollars, largely due to the phase-out of Koolaburra standalone operations.

DTC net sales increased 8.1 percent to 1.09 billion dollars, while DTC comparable net sales rose 7.3 percent. Wholesale net sales increased 6 percent to 864.60 million dollars.

Geographically, international markets led the expansion with a 15 percent increase in net sales to 756.70 million dollars. Domestic sales in the US grew more modestly at 2.7 percent, reaching 1.20 billion dollars.

Profitability and FY26 outlook

The group reported an operating income of 614.40 million dollars, an increase from 567.30 million dollars in the previous year. Diluted earnings per share (EPS) for the third quarter rose to 3.33 dollars, compared to the same period last year.

Based on the strong Q3 performance, Deckers has updated its financial outlook for the full year ending March 31, 2026. Net sales are expected to be between 5.40 billion dollars and 5.43 billion dollars, gross margin projected at approximately 57 percent, operating margin at approximately 22.5 percent and diluted EPS to be in the range of 6.80 dollars to 6.85 dollars.

The group noted that Hoka is now expected to increase by a mid-teens percentage for the full year, while Ugg is projected to grow by a mid-single-digit percentage.