Deckers Outdoor Corporation stock research
FY2026 Q3
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but was slightly lower than the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but was slightly lower than the year-ago quarter.
- The sequential improvement in gross margin was associated with revenue growing at a faster pace than cost of revenue. The year-over-year decline reflected a slightly higher proportion of cost of revenue relative to revenue.
- Revenue, gross profit, and cost of revenue were all higher than both the prior quarter and the year-ago quarter. The gross margin was higher than the prior quarter but lower than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.8%
Gross profit
$1.2B
Revenue
$2.0B
Cost of revenue
$786.2M
Quarter-over-quarter change
+3.7 pts
Year-over-year change
-0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.0B | $579.8M | $442.0M | 56.7% |
| Jun 30, 2025 | $964.5M | $537.9M | $426.6M | 55.8% |
| Sep 30, 2025 | $1.4B | $803.8M | $627.0M | 56.2% |
| Dec 31, 2025 | $2.0B | $1.2B | $786.2M | 59.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+3.7 pts
Year-over-year change
Dec 31, 2024
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was associated with revenue growing at a faster pace than cost of revenue. The year-over-year decline reflected a slightly higher proportion of cost of revenue relative to revenue.
Revenue, gross profit, and cost of revenue were all higher than both the prior quarter and the year-ago quarter. The gross margin was higher than the prior quarter but lower than the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue to see if the sequential margin improvement can be sustained.