"...it’s great to be here with you today to discuss our superb third quarter, the largest and most profitable in Deckers’ history." - Stefano Caroti, CEO
— Stefano Caroti
03Detailed Report
DECK
Deckers Outdoor Corporation
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 4, 2026
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Executive Summary
Deckers Outdoor Corporation reported a record-breaking performance in Q3 2025, achieving revenue of $1.83 billion, reflecting a 17% increase year-over-year. This achievement underscored the strength of the UGG and HOKA brands, with UGG growing by 16% and HOKA experiencing even stronger growth at 24%. Management highlighted that this quarter's gross margin improved to 60.3%, a significant accomplishment attributed to effective inventory management and a focus on full-price selling. With a strong cash position of $2.2 billion and no debt, Deckers is well-positioned for sustained growth as management raises its fiscal year revenue expectation to over $4.9 billion. The upcoming launches, specifically for the HOKA brand, are anticipated to further bolster performance in the coming quarters.
Key Performance Indicators
Revenue
Increasing
1.83B
QoQ: 39.34% | YoY: 17.10%
Gross Profit
Increasing
1.10B
60.35% margin
QoQ: 50.37% | YoY: 20.30%
Operating Income
Increasing
567.27M
QoQ: 85.94% | YoY: 16.27%
Net Income
Increasing
456.73M
QoQ: 88.48% | YoY: 17.14%
EPS
Increasing
3.01
QoQ: 89.31% | YoY: 18.89%
Revenue Trend
Margin Analysis
Financial Highlights
Key Financial Metrics:
- Revenue: $1.83 billion (YoY: +17%, QoQ: +39%)
- Gross Profit: $1.10 billion (Gross Margin: 60.3%)
- Operating Income: $567 million (Operating Margin: 31.0%)
- Net Income: $457 million (Net Margin: 25.0%)
- EPS: $3.00 (YoY: +19%).
- Cash at End of Period: $2.24 billion
- Inventory: $577 million (up 7% YoY)
- SG&A Expenses: $535 million (29.3% of revenue)
Management noted a strategic inventory build-up that allowed them to capture demand effectively, which contributed to the record gross margins seen this quarter, a beneficial shift compared to prior year's shortages.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.83B
17.10%
39.34%
Gross Profit
1.10B
20.30%
50.37%
Operating Income
567.27M
16.27%
85.94%
Net Income
456.73M
17.14%
88.48%
EPS
3.01
18.89%
89.31%
Key Financial Ratios
Gross Profit Margin
Excellent
60.30%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
31.00%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
25.00%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Good
11.50%
Return on assets shows solid performance and effective asset utilization
Return on Equity
Good
17.40%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Strong
3.17
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.10
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
16.88x
P/E ratio in line with market averages
Price to Book
High Premium
11.72x
Very high premium suggests asset-light business model or lofty expectations
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