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Deckers Outdoor (DECK) delivered a standout 3Q26 beat-and-raise, igniting a huge rally in the stock. The company crushed EPS and revenue expectations and raised its FY26 outlook comfortably above analyst forecasts. This performance is underpinned by the relentless growth of HOKA and the record-breaking resilience of UGG, both of which continue to benefit from disciplined marketplace management and a profitable shift toward direct-to-consumer (DTC) sales.

• Q3 revenue reached $1.96 bln (up 7.1% yr/yr), surpassing the FactSet consensus estimate of $1.88 bln.
• EPS hit $3.33, a record for the third quarter and a substantial beat against the $2.77 analyst forecast.
• HOKA revenue surged 18.5% to $628.9 mln, driven by strong full-price selling and the brand's return to the top position in performance run specialty.
• UGG revenue reached a record $1.31 bln (up 4.9%), supported by healthy demand across key seasonal franchises and resilient price elasticity.
• DTC net sales increased 8.1% to $1.09 bln, reflecting the ongoing strategic priority of owning the consumer relationship.
• International net sales jumped 15.0% to $756.7 mln, significantly outpacing domestic growth and highlighting a massive global white-space opportunity.
• Gross margin remained robust at 59.8%, supported by high levels of full-price selling and favorable brand mix.
• FY26 guidance was raised across the board, with revenue now projected between $5.40–$5.425 bln and EPS of $6.80–$6.85, both well ahead of consensus.

Briefing.com Analyst Insight

DECK’ Q3 results confirm that HOKA and UGG have transitioned into year-round growth engines that are successfully siphoning market share from legacy competitors like NIKE (NKE) and Adidas (ADDYY). HOKA's return to the top spot in run specialty, combined with UGG’s record $1.3 bln quarter, proves the portfolio's "must-have" status even in a promotional retail environment. While management flagged potential tariff headwinds for FY26, the raised guidance suggests they have ample levers, specifically pricing power and supply chain agility, to protect their industry-leading margins. Ultimately, DECK' ability to scale HOKA internationally while maintaining a clean wholesale marketplace provides a clear runway for continued valuation expansion.