Q : How did the 12% growth in the US compare to expectations, and what are the international growth prospects for Q4 and fiscal '26? A : Stefano Caroti, CEO: The US growth met expectations, and we anticipate international growth to outpace the US. Our goal is for international sales to eventually represent 50% of total sales. We expect this trend to continue into Q4 and fiscal '26.

Q : What are the opportunities to maintain or improve the operating margin while reinvesting in growth? A : Steven Fasching, CFO: Maintaining high margins is challenging due to inflationary and foreign exchange pressures. While we expect some headwinds, our scarcity model and full-price selling help sustain high margins. We'll continue to evaluate and manage these factors.

Q : Can you elaborate on the Clifton 10 launch and its impact on sales and margins? A : Steven Fasching, CFO: The Clifton 10 launch will be a phased rollout, with some sales in Q4 and continuing into Q1. The impact of sunsetting the Clifton 9 is included in our guidance, with anticipated closeouts affecting margins by about 100 basis points.

Q : What are the long-term growth prospects for Deckers, and could the company reach $7 billion to $8 billion in sales? A : Stefano Caroti, CEO: There are no limitations to our brands' growth. UGG is more balanced across categories, and HOKA has potential in the performance space. While we don't provide long-term targets, we aim to grow sustainably without compromising brand equity.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .