The US shoe manufacturer Deckers Brands has reported positive sales and earnings figures for the third quarter ended December 31, 2025. The Goleta-based group increased its net sales by 7.1 percent to 1.96 billion US dollars (1.64 billion euros). On a constant currency basis, growth was 6.8 percent.
Stefano Caroti, President and Chief Executive Officer (CEO), attributed the development to strong global demand for the Ugg and Hoka brands. Both labels achieved strong full-price sales, contributing to a robust gross margin of 59.8 percent in the period.
Performance of brands and sales channels
The Hoka brand continued its dynamic development and increased net sales by 18.5 percent to 628.90 million US dollars. Ugg also recorded a 4.9 percent increase in sales to $1.31 billion. The remaining brands in the portfolio, however, suffered a significant decline of 55.5 percent to $23.20 million, largely due to the discontinuation of Koolaburra’s independent activities.
Direct-to-consumer (DTC) net sales increased 8.1 percent to $1.09 billion. Comparable DTC net sales grew 7.3 percent. In the wholesale business, net sales rose six percent to $864.60 million.
Geographically, the international markets led the growth: Here, net sales increased by 15 percent to $756.70 million. Growth was more moderate in the USA; Domestic sales rose 2.7 percent to $1.20 billion.
Profitability and outlook for the 2026 financial year
Third-quarter operating income was $614.40 million, down from $567.30 million in the same period last year. Diluted earnings per share (EPS) rose to $3.33, above the prior-year quarter.
Based on the strong performance in the third quarter, Deckers Brands has adjusted its financial outlook for the fiscal year ending March 31, 2026. Net sales are now expected to be between $5.40 billion and $5.43 billion. The gross margin is expected to reach around 57 percent, while the operating margin is expected to be around 22.5 percent. Diluted earnings per share are forecast in a range of $6.80 to $6.85.
In addition, the group expects Hoka to grow in the mid-double-digit percentage range for the full year. Growth in the mid-single-digit percentage range is expected for Ugg.
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