Q3 2026 Deckers Outdoor Corp Earnings Call Transcript
Key Points
- Deckers Outdoor Corp (DECK) reported a 7% increase in third-quarter revenue, reaching $1.96 billion, driven by strong performances from the HOKA and UGG brands.
- HOKA brand revenue increased by 18% year-over-year, with balanced growth across direct-to-consumer (DTC) and wholesale channels.
- UGG brand achieved a record $1.3 billion in revenue for the third quarter, with a 5% increase compared to the previous year.
- Deckers Outdoor Corp (DECK) maintained high levels of full-price selling, contributing to a gross margin of 59.8%, which exceeded expectations.
- The company raised its full-year revenue expectations to a range of $5.4 billion to $5.425 billion, reflecting confidence in continued brand momentum and market share gains.
- Deckers Outdoor Corp (DECK) faces considerable risks and uncertainties related to global trade policy, tariffs, and foreign currency exchange rates, which could impact future performance.
- The company anticipates a significant net tariff impact of approximately $25 million for fiscal year 2026, which could affect profitability.
- Despite strong brand performance, the company remains cautious about the broader economic environment and its potential impact on consumer behavior.
- Deckers Outdoor Corp (DECK) is experiencing fluctuations in channel growth as it makes strategic adjustments to distribution, which could lead to variability in quarterly performance.
- The phaseout of the Koolaburra brand contributed to a decline in certain segments, highlighting challenges in managing brand portfolios.
Good afternoon, and thank you for standing by. Welcome to the Deckers Brands' third-quarter fiscal 2026 earnings conference call. (Operator Instructions) I would now like to remind everyone that this conference call is being recorded.
I'll now turn the call over to Erinn Kohler, Vice President of Investor Relations and Corporate Planning. Please go ahead.
Hello, and thank you everyone for joining us today. On the call is Stefano Caroti, President and Chief Executive Officer; and Steve Fasching, Chief Financial Officer.
Before we begin, I would like to remind everyone of the company's Safe Harbor policy. Please note that certain statements made on this call are forward-looking statements within the meaning of the federal securities laws, which are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of
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