Deckers cuts sales outlook to $5.700–5.725 billion for fiscal 2027

Key Facts

Deckers reported results on October 22, 2026, for the second quarter of fiscal 2027, ended September 30, and cut its full-year sales outlook to a range of $5.700–$5.725 billion. Net sales were $1.481 billion, up 3.5% from $1.431 billion a year earlier, or 2.8% on a constant-currency basis. Revenue, however, fell short of the market estimate of $1.51 billion, according to Benzinga coverage, which noted that earnings per share came to $2.31 against an estimate of $1.80. The results show a contrast between limited sales growth and earnings that beat estimates. Chief Executive Stefano Caroti said the company delivered earnings "above our expectations" through disciplined market management and a focus on expense control in a challenging consumer environment.

By brand, Hoka sales rose 6.8% to $677.2 million, while UGG sales increased 3.5% to $786.4 million compared with the same period a year earlier. But performance by sales channel showed a clear gap: wholesale sales rose 5.5% to $1.093 billion, while direct-to-consumer sales fell 1.8% to $387.5 million. Comparable sales for that channel declined 6.4%. Geographically, domestic sales fell 0.4% to $835.8 million, while international sales grew 9.0% to $644.7 million. The figures highlight the reliance of revenue growth on wholesale and international markets, alongside weakness in the direct channel and domestic market.

Diluted earnings per share were $2.31, compared with $1.82 in the same quarter of the prior fiscal year. The company said the figure included an after-tax net impact of about $0.28 per share from tariff refunds; it received net refunds of $46.0 million during the quarter, along with $3.0 million in related interest. Gross margin rose to 60.5% from 56.2%, while operating income increased to $389.5 million from $326.5 million. The company estimated that tariff refunds added about 310 basis points to both gross and operating margins. Reported earnings and margins were therefore partly supported by these amounts, alongside quarterly sales growth.

In its full-year guidance, the company cut its fiscal 2027 Hoka sales growth outlook from low double-digit growth to high single-digit growth, and lowered its UGG growth outlook from the mid-single digits to the low single digits. Deckers now expects gross margin of about 58.5% and an operating margin of about 23% for the fiscal year. Caroti said the company is taking steps in the second half to strengthen its connection with consumers, improve execution and focus resources on its biggest opportunities. The annual earnings outlook includes an impact of about $0.52 per share from tariff refunds received through October 8, 2026, and assumes no additional refunds. Through that date, net refunds totaled $87.9 million, plus $4.7 million in related interest.

Deckers shares fell 8.7% to $77.74 in extended trading after the close of the October 22 session, according to Benzinga Pro data. In premarket trading on October 23, they fell 9.7% to $77, nearing their 52-week low of $77.20, according to Investing.com. In separate coverage, Stifel cut its price target to $113 from $133 on October 23 while maintaining a Buy rating, noting that a delayed $22 million European shipment was among the factors associated with the revenue shortfall. The guidance revision follows fiscal 2026, when the company posted annual sales growth of 9.8% to $5.472 billion, with Hoka sales up 15.9% and UGG sales up 8.2%. The investor relations calendar showed no upcoming date when checked; the second-quarter earnings call had been scheduled for October 22 at 4:30 p.m. Eastern time.