Deckers Outdoor Corporation (DECK), the maker of popular footwear brands UGG and HOKA, saw its stock plummet by 15.95% in pre-market trading on Friday, despite reporting record third-quarter earnings and revenue that surpassed analyst expectations.

For the third quarter of fiscal year 2025, Deckers reported quarterly revenue of $1.83 billion, up 17% year-over-year, driven by continued momentum in its iconic UGG and HOKA brands. Adjusted earnings per share came in at $3.00, beating the consensus forecast.

However, the company's updated full-year outlook seemed to disappoint investors. While Deckers raised its fiscal 2025 revenue growth guidance to approximately 15% and lifted its full-year earnings per share guidance to a range of $5.75 to $5.80, these projections fell short of market expectations, causing the stock to sell off in pre-market trading despite the strong third-quarter results.

Deckers executives warned that lower available inventory for the UGG brand in the fourth quarter could limit sales, while timing factors related to wholesale sellouts for the HOKA brand could distort the growth rate in the current quarter compared to the previous year.