Deckers Shares Plunge Despite Record Earnings and Upgraded Guidance

Investor concerns about slowing growth for Hoka and Ugg overshadow Deckers' strong Q3 performance and raised fiscal outlook.

Deckers Outdoor reported record Q3 earnings of $3 per share, surpassing the consensus estimate of $2.55, and revenue of $1.83 billion, up 17% year-over-year.
The company raised its fiscal 2025 revenue growth forecast to 15% and expects earnings between $5.75 and $5.80 per share for the year.
Despite strong results, Deckers stock fell nearly 20% as investors expressed concerns about slowing growth for its key brands, Hoka and Ugg, and potential inventory challenges.
Analysts offered mixed reactions, with some highlighting Deckers' long-term strategies and brand strength, while others pointed to cautious sales guidance and margin pressures.
UBS called the stock's decline a buying opportunity, citing a robust product pipeline for Hoka and Ugg's transformation into a year-round brand.