EL7.AI
StocksMedium•22 October 2026•
3 min read

Deckers cuts annual sales forecast, shares fall 8.7% in extended trading

Key Facts

1Deckers cut its sales forecast for the fiscal year ending in March 2027 to between $5.700 billion and $5.725 billion.
2The company raised its annual earnings per share forecast to a range of $7.80 to $7.95.
3Benzinga reported an 8.7% decline in the shares in extended trading on the day of the earnings announcement.
4Quarterly earnings per share were $2.31 against expectations of $1.80, according to Benzinga.
5Comparable direct-to-consumer sales fell 6.4% during the fiscal second quarter.

Deckers Outdoor cut its sales forecast for the fiscal year ending in March 2027 to between $5.700 billion and $5.725 billion, according to its earnings statement released on October 22, 2026. In July, the company had forecast annual sales of between $5.86 billion and $5.91 billion, before revising its outlook with the release of its fiscal second-quarter results. It raised its annual earnings per share forecast to between $7.80 and $7.95 from a previous range of $7.35 to $7.50. The sales forecast cut came after Williams Trading had expected annual revenue guidance to remain unchanged, according to a report published by Investing.com in mid-October. The company's shares fell 8.7% in extended trading on the day of the announcement, according to Benzinga, as earnings beat estimates while revenue fell short of expectations.

Deckers reported sales of about $1.481 billion in the second quarter of fiscal 2027, according to the company's statement. Revenue fell short of estimates of $1.51 billion, according to Benzinga, while quarterly earnings per share reached $2.31 against expectations of $1.80. The chief executive attributed earnings above the company's expectations to commercial discipline and expense control, citing "expense control in a challenging consumer environment." Quarterly earnings per share also benefited from tariff refunds, which added about $0.28 per share after tax, according to the earnings statement. For the full fiscal year, the new earnings forecast includes a benefit of about $0.52 per share from tariff refunds, alongside the increase in the projected earnings range and the reduction in the sales range.

By brand, Deckers reported a 6.8% year-on-year increase in HOKA sales during the fiscal second quarter. UGG sales grew 3.5% over the same period, with both brands posting sales increases as comparable direct-to-consumer sales declined. Those comparable sales fell 6.4%, according to the company, after rising 6.8% in the fiscal first quarter. Comparable direct-to-consumer sales thus shifted from growth in the quarter ended in June 2026 to a decline in the following quarter, amid the challenging consumer environment cited by the chief executive. During the fiscal second quarter, the company repurchased $299.3 million of shares, according to its statement.

Deckers ended fiscal 2026 with sales of $5.472 billion, up 9.8% year on year, according to its annual earnings release. Sales in the comparison year, fiscal 2025, were about $4.986 billion, before the increase recorded the following year. In the first quarter of fiscal 2027, which ended in June 2026, sales rose 5.7% to $1.020 billion from $964.5 million a year earlier. The revised annual sales forecast remains above the previous fiscal year's total, despite the reduction from the range the company announced in July. The company is heading into the second half of its fiscal year ending in March 2027, a period that accounts for more than 80% of UGG's annual direct-to-consumer revenue, according to Williams Trading in the report cited by Investing.com in October.