Deckers Brands cleared expectations with a record Q3 2025 report late Thursday and hiked its guidance. However, shares of the Hoka shoemaker tumbled following executive comments on sales comparisons and inventory for the fourth quarter.
Deckers Brands reported a 19% increase in earnings to a record $3 per share on 17% revenue growth to $1.83 billion, also a record.
FactSet analysts expected the shoemaker to report earnings of $2.58 per share on $1.73 billion in sales.
Direct-to-consumer comparable sales increased 18.3%, with a 16.2% increase in wholesale revenue.
Ugg brand sales jumped 16.1% to $1.24 billion, while Hoka shoe sales spiked nearly 24% to $530.9 million.
Teva sales declined 6%, and other brand revenue fell 16.6%.
Deckers Brands lifted its full-year earnings forecast to range from $5.75 to $5.80 per share, up from its prior outlook for $5.15 to $5.25 per share. The Hoka maker now sees 2025 sales increasing 15% to $4.9 billion, up slightly from its prior guidance for $4.8 billion.
The outlook was ahead of FactSet expectations for full-year earnings of $5.64 per share on $4.93 billion in sales. Analysts lifted their 2025 targets to $5.88 per share on $4.97 billion in sales after results, according to FactSet.
However, CFO Steven Fasching in the earnings call noted that the company faces difficult year-over-year comparisons for its Ugg and Hoka brands. He said the company ran low on Ugg supply and had to catch up with demand through Q4 a year ago. That demand was captured in Q3 this year, but left limited inventory left to sell for the fourth quarter.
Still, Deckers expects Q4 to be a record in terms of volume for the Hoka brand. But the company expanded its wholesale and retail channels for the brand a year ago, which will create some variation in the quarterly growth rates, Fasching added.
Demand for the brands remains strong, executives said. Deckers still expects to achieve its guidance for 10% Ugg revenue growth and 24% Hoka revenue growth.
Deckers Stock Performance
DECK stock unraveled 20% Friday following the earnings call. The loss put shares at their furthest level below their 50-day moving average since October.
Shares of the Hoka maker had closed at a record high 223.11 on Thursday before earnings, following a 22% rally from a late November breakout.
Deckers also completed a six-for-one stock split during its second quarter.
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