AI Takeaway
DECK delivered strong Q3 FY2026 results with revenue rising 7.1% YoY to $1.96B and diluted EPS surging 11.0% to $3.33, driven by operating leverage and aggressive share buybacks totaling $813.5M year-to-date.
Revenue
$1.96B
++7.14% YoY
EPS (Basic)
$3.34
++10.96% YoY
Gross Margin
59.8%
-0.51% YoY
Operating Income
$614.37M
++8.30% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 7.1% YoY to $1.96B in Q3 FY2026 (vs. $1.83B in Q3 FY2025), reflecting continued consumer demand across DECK's brand portfolio. This top-line expansion outpaced SG&A growth of 4.0%, demonstrating improving operating efficiency.
Source: Source: 10-Q Income Statement
Operating income rose 8.3% YoY to $614.4M, with operating margin expanding modestly to 31.4% from 31.0% in the prior-year period. The faster growth in operating income relative to revenue indicates effective cost discipline, particularly in SG&A which grew only 4.0% against 7.1% revenue growth.
Source: Source: 10-Q Income Statement
Gross margin declined approximately 51 basis points YoY to 59.8% (from 60.3%), as cost of revenue grew 8.5%—faster than revenue growth of 7.1%. This modest compression suggests some input cost or product mix headwinds, though margins remain at an elevated level.
Source: Source: 10-Q Income Statement & Key Ratios
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Upgrade to unlockCost of revenue grew 8.5% YoY, outpacing revenue growth of 7.1%, resulting in a ~51 basis point decline in gross margin to 59.8%. Sustained input cost inflation or unfavorable product/channel mix shifts could further pressure profitability if not offset by pricing or operational efficiencies.
Source: Source: 10-Q Income Statement & Key Ratios
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Upgrade to unlockReported EPS of $3.33 versus the $2.82 analyst consensus — a +18.1% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.96B | $1.83B | +7.14% |
Cost of Revenue | $786.19M | $724.54M | +8.51% |
Gross Profit | $1.17B | $1.1B | +6.23% |
Operating Income | $614.37M | $567.27M | +8.30% |
Net Income | $481.14M | $456.73M | +5.34% |
EPS (Basic) | $3.34 | $3.01 | +10.96% |
EPS (Diluted) | $3.33 | $3.00 | +11.00% |
SG&A Expense | $556.99M | $535.35M | +4.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.1B | $3.96B | +3.48% |
Current Assets | $3.28B | $3.27B | +0.25% |
Current Liabilities | $1.15B | $1.03B | +11.29% |
Stockholders' Equity | $2.61B | $2.63B | -0.82% |
Cash & Equivalents | $2.09B | $2.24B | -6.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.09B | $1.12B | -2.81% |
Investing Cash FlowYTD | $-67.53M | $-58.56M | -15.32% |
Financing Cash FlowYTD | $-824.37M | $-316.64M | -160.35% |
Share BuybacksYTD | $813.49M | $301.01M | +170.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 59.8% | 60.3% | -0.51% |
Operating Margin | 31.4% | 31.0% | +0.34% |
Net Margin | 24.6% | — | — |
ROE | 18.4% | — | — |
ROA | 11.7% | — | — |
Current Ratio | $2.856 | — | — |
DECK reported Q3 FY2026 revenue of $1.96B, up 7.1% YoY, with diluted EPS of $3.33, up 11.0% YoY. Net income grew 5.3% to $481.1M, and operating margin expanded modestly to 31.4%, reflecting strong brand demand and disciplined cost management.
DECK's diluted EPS grew 11.0% YoY to $3.33, significantly outpacing net income growth of 5.3%, because the company repurchased $813.5M in shares year-to-date in FY2026—a 170.3% increase over the prior year. Fewer shares outstanding means each remaining share represents a larger portion of earnings.
DECK's balance sheet is strong, with $2.09B in cash and equivalents, a current ratio of 2.86x, and total assets of $4.10B. The company generates substantial operating cash flow of $1.09B year-to-date, though cash balances declined 6.9% YoY primarily due to the accelerated share buyback program.
DECK's gross margin declined approximately 51 basis points YoY to 59.8% in Q3 FY2026, as cost of revenue grew 8.5%—faster than revenue growth of 7.1%. Despite this slight compression, the gross margin remains exceptionally high for a consumer goods company.
DECK spent $813.5M on share repurchases on a year-to-date basis through Q3 FY2026, representing a 170.3% increase compared to $301.0M in the same period of the prior fiscal year. This aggressive capital return program was the primary driver of the 11.0% EPS growth outpacing the 5.3% net income growth.