EL7.AI
StocksMediumUpdated×4•Originally published 22 October 2026•Updated 23 October 2026•
4 min read

Deckers cuts annual sales outlook to $5.725 billion and raises EPS forecast

Key Facts

1Second-quarter fiscal sales were $1.481 billion, up 3.5%, and diluted earnings per share were $2.31.
2Deckers cut its fiscal 2027 consolidated sales outlook to $5.700–$5.725 billion and raised its earnings-per-share outlook to $7.80–$7.95.
3Comparable direct-to-consumer sales fell 6.4% in the fiscal second quarter.
4The company estimated that tariff refunds received through October 8 would benefit projected fiscal 2027 diluted earnings per share by about $0.52.

Deckers narrowed its fiscal 2027 consolidated sales outlook to $5.700–$5.725 billion, despite a 3.5% increase in sales for the fiscal second quarter ended September 30, 2026, to $1.481 billion. The company said diluted earnings per share were $2.31, compared with $1.82 in the year-earlier period. On a constant-currency basis, sales rose 2.8%, while second-quarter sales in the prior fiscal year were $1.431 billion. After the results were announced, the stock fell 9.6% in after-hours trading on October 22, according to Investing.com. The results reflect growth in earnings and sales, but the revised annual guidance and decline in direct-to-consumer sales highlight differing performance across channels and brands.

The two main brands delivered mixed results during the quarter: HOKA sales rose 6.8% to $677.2 million, while UGG sales increased 3.5% to $786.4 million. By contrast, sales of other brands fell 54.3% to $17.0 million. The company said results in this category were affected by the end of Koolaburra’s standalone operations. The brands’ growth comes as HOKA recorded growth of 24% in fiscal 2025, then 16% in fiscal 2026, before slowing to 7.7% in the June 2026 quarter, according to Investing.com. In its current fiscal 2027 outlook, the company expects high-single-digit growth for HOKA and low-single-digit growth for UGG.

By sales channel, wholesale sales rose 5.5% to $1.093 billion, while direct-to-consumer sales declined 1.8% to $387.5 million. Comparable direct-to-consumer sales, which measure performance at existing stores, fell 6.4%. Management said on the earnings call that promotional activity in the United States increased during the quarter, particularly in athletic footwear, putting pressure on U.S. e-commerce performance. It added that the company maintained its full-price selling policy amid increased discounting. The CEO said the company delivered quarterly earnings above its expectations through “disciplined marketplace management and a focus on expense control in a challenging consumer environment.”

The results showed a geographic divergence between the domestic and international markets: domestic sales fell 0.4% to $835.8 million, while international sales rose 9.0% to $644.7 million. Weak domestic sales coincided with the decline in comparable direct-to-consumer sales and the pressure on U.S. e-commerce described by management. By contrast, international and wholesale growth were stronger areas of quarterly performance. Gross margin rose to 60.5% from 56.2% a year earlier, while operating income increased to $389.5 million from $326.5 million. The quarter’s results included net IEEPA tariff refunds of $46.0 million and related interest of $3.0 million, which the company said added an estimated $0.28 to after-tax diluted earnings per share.

Deckers raised its fiscal 2027 diluted earnings-per-share outlook to a range of $7.80–$7.95, with the guidance assuming $1.0 billion in share repurchases. The company said its outlook includes net IEEPA tariff refunds of $87.9 million, plus $4.7 million in interest, received through October 8, 2026. The company estimates these amounts provide a benefit of about $0.52 after tax to projected annual earnings per share. The guidance assumes no additional refunds. The outlook therefore includes support from refund amounts the company has already received, alongside its sales and earnings estimates for the remainder of the fiscal year.

The company repurchased about 3.2 million shares during the quarter for $299.3 million. From the start of the fiscal year through September 30, repurchases totaled about 6.5 million shares valued at $637.5 million. The second-quarter results review call was scheduled for October 22, 2026, at 4:30 p.m. Eastern Time, according to the investor relations calendar. The CEO said on the call that he expects the market to look better in the summer and fall of 2027. He added that the company will continue to protect full-price selling as promotional activity increases in the U.S. market.