Deckers Outdoor (NYSE:DECK) delivered a stellar third-quarter performance, beating Wall Street estimates on both earnings and revenue, yet its stock tumbled 13% in pre-market trading on Friday as investors reacted cautiously despite an improved full-year outlook.

The company reported adjusted earnings per share of $3.00 for the fiscal third quarter of 2025, handily surpassing analyst projections of $2.46. Revenue surged 17% year-over-year to a record $1.83 billion, exceeding the expected $1.7 billion.

Deckers now expects earnings per share between $5.75 and $5.80, topping analyst forecasts of $5.64. The company also lifted its revenue growth outlook to 15% for the fiscal year.

CEO Stefano Caroti emphasized the company’s success in capitalizing on consumer demand, particularly for its flagship UGG brand, which saw significant global traction. The HOKA brand also posted strong growth, reflecting the company’s focus on performance-driven innovation.

While Deckers’ fundamentals appear solid, the steep stock decline suggests investor concerns over valuation or potential future growth trends. Nonetheless, the company remains confident in its momentum heading into the remainder of the fiscal year.