Deckers shares ripped higher after the footwear giant delivered a blowout holiday quarter, powered by strong demand across its biggest brands. The company reported record revenue of $1.96 billion for the quarter ended December 31, 2025, ahead of the $1.87 billion analysts were expecting. Adjusted earnings per share came in at $3.33, about 21% above forecasts, as full-price selling helped drive a chunky 59.8% gross margin.
Hoka hit the gas, Ugg kept the cash flowing
Deckers Brands got a one-two punch from its top labels. UGG remained the revenue heavyweight, bringing in $1.3 billion during the quarter, while Hoka was the clear growth star, with sales jumping 18.5% year over year to $629 million. Management highlighted “significant global demand” and high levels of full-price selling, a big win in a retail environment where discounting usually eats into margins.
That brand momentum is now flowing straight into stronger expectations for the rest of the year.
Guidance up, share count down
Deckers raised its full-year revenue outlook for the fiscal year ending March 31, 2026, to a range of $5.4 billion to $5.425 billion, up from the prior $5.35 billion view. On top of that, the company has already repurchased $813.5 million worth of stock over the last nine months and now expects total buybacks to top $1 billion for the fiscal year. Bigger sales, fatter margins, and an aggressive buyback is exactly the kind of trio that tends to keep momentum traders interested.