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Deckers Jumps as HOKA and UGG Power Record Quarter and Higher Outlook

A stronger-than-expected gross margin reassured investors concerned about tariffs.

Overview

  • Fiscal Q3 revenue rose 7% to $1.96 billion with diluted EPS of $3.33, topping expectations.
  • UGG generated about $1.31 billion in sales (+4.9%) and HOKA reached roughly $629 million (+18.5%) on sustained full‑price selling.
  • Gross margin reached 59.8% as pricing actions and inventory timing blunted tariffs, which management estimated at roughly $110 million unmitigated, or about $25 million net.
  • Deckers raised full-year guidance to $5.40–$5.425 billion in sales and $6.80–$6.85 in EPS, citing momentum across channels and regions.
  • Shares surged more than 10% after hours and extended gains into Jan. 30–31, as the company repurchased about $349 million of stock in the quarter with $1.8 billion authorization remaining.