Deckers’ Surprise Blowout Has Wall Street Repricing the Story

Core Insights - Deckers Outdoor Corp. reported record earnings in its third-quarter fiscal year 2026, leading to a 14.2% surge in stock price during after-hours trading, indicating strong investor confidence [1] - The company raised its full-year guidance for earnings per share (EPS) to between $6.80 and $6.85, surpassing previous guidance and analysts' consensus [2] - Net sales guidance was also increased to between $5.40 billion and $5.425 billion, exceeding prior estimates and analyst expectations [3] Financial Performance - HOKA brand experienced high-teens growth with approximately $629 million in revenue, while UGG brand sales increased by 4.9% to $1.305 billion, outperforming estimates [3] - The results reflect Deckers' ability to gain market share in performance footwear and maintain pricing power in its lifestyle segment, despite a challenging retail environment [4] Analyst Sentiment - Analysts may remain cautious despite the strong performance, citing concerns over the sustainability of HOKA's growth and a potential normalization in UGG's demand trajectory [5] - The stock's valuation may already reflect significant past execution, which could temper future expectations [6]