Core Insights - Deckers Outdoor Corporation (DECK) reported strong third-quarter fiscal 2026 results, with both revenue and earnings exceeding estimates and showing year-over-year growth, leading to an increase in fiscal 2026 guidance [1][9] Financial Performance - DECK's quarterly earnings were $3.33 per share, surpassing the Zacks Consensus Estimate of $2.77 and up from $3.00 in the prior year [2] - Net sales increased by 7.1% year over year to $1.96 billion, exceeding the consensus estimate of $1.88 billion; on a constant-currency basis, net sales grew by 6.8% [2] - Gross profit rose by 6.2% year over year to $1.17 billion, with a gross margin of 59.8%, down from 60.3% in the previous year but above the estimate of 57.4% [3] - SG&A expenses increased by 4% year over year to $557 million, representing 28.5% of revenues, a decrease of 80 basis points from last year [4] - Operating income was $614.4 million, an increase of 8.3% from $567.3 million in the prior year, with an operating margin of 31.4%, up 40 basis points [4] Brand Performance - HOKA brand sales grew by 18.5% year over year to $628.9 million, exceeding projections, driven by strong performance in both direct-to-consumer and wholesale channels [5] - UGG brand net sales increased by 4.9% year over year to $1.31 billion, surpassing estimates, with growth supported by effective inventory management and consumer engagement [6] - Other Brands saw a significant decline in net sales, down 55.5% year over year to $23.2 million, attributed to the phase-out of Koolaburra's standalone operations [7] Channel and Geographic Insights - Wholesale net sales increased by 6% year over year to $864.6 million, while direct-to-consumer net sales rose by 8.1% to $1.09 billion [10] - Domestic net sales grew by 2.7% to $1.20 billion, while international net sales increased by 15% to $756.7 million [10] Future Outlook - For the fourth quarter of fiscal 2026, DECK anticipates mixed operating conditions, with HOKA expected to drive growth despite higher tariffs impacting gross margins [12][15] - HOKA revenues are projected to grow by 13-14% year over year, while UGG revenues are expected to remain flat compared to the prior year [13][14] - The company raised its full-year outlook for fiscal 2026, expecting net sales of $5.40-$5.425 billion, with HOKA anticipated to deliver mid-teens revenue growth and UGG expected to grow at a mid-single-digit rate [17] - The gross margin for fiscal 2026 is projected at 57%, with SG&A expenses expected to represent 34.5% of revenues [18] - Earnings per share are expected to be in the range of $6.80-$6.85, indicating a 7-8% increase from the previous year [19]

Core Viewpoint - The article emphasizes the importance of conducting thorough personal research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - Investors are encouraged to reach out for insights and contrasting views on stock portfolios, indicating a collaborative approach to investment analysis [1]. - There is a clear disclaimer regarding the lack of any current stock or derivative positions in the companies mentioned, ensuring transparency in the analysis [2].