Deckers Posts Record Quarterly Sales of $1.481 Billion, Cuts Full-Year Outlook

Key Facts

Deckers Brands reported record net sales of $1.481 billion in the fiscal second quarter ended September 30, 2026, up 3.5% year over year, according to the company’s official results statement. Sales rose 2.8% excluding the impact of foreign-exchange movements, compared with $1.431 billion in the same period of the prior fiscal year. But revenue fell short of Wall Street’s $1.51 billion estimate, according to Investing.com. The company raised its fiscal 2027 earnings-per-share outlook range while lowering its annual sales outlook range. The results show a divergence between growth at its two main brands and broader wholesale sales, on one hand, and a decline in direct-to-consumer sales, on the other.

HOKA sales rose 6.8% to $677.2 million, while UGG sales increased 3.5% to $786.4 million during the quarter. Growth at both brands was in the single digits, after HOKA growth slowed from 24% in fiscal 2025 to 16% in fiscal 2026, then to 7.7% in the June 2026 quarter, according to an Investing.com report. By sales channel, wholesale sales rose 5.5% to $1.093 billion. By contrast, direct-to-consumer sales fell 1.8% to $387.5 million, and comparable sales in that business declined 6.4%. The divergence highlights the quarter’s reliance on wholesale growth alongside weakness in the channel through which the company sells directly to consumers.

Geographically, international sales grew 9.0% to $644.7 million, while domestic sales fell 0.4% to $835.8 million. Chief Executive Stefano Caroti said the company exceeded its quarterly earnings expectations through “disciplined marketplace management and a focus on expense control in a challenging consumer environment.” Gross margin was 60.5%, compared with 56.2% a year earlier. The company attributed about 310 basis points of the improvement in gross and operating margins to the positive impact of net tariff refunds. Diluted net earnings per share were $2.31, up 27% from the year-earlier period, including a $0.28 per-share after-tax benefit from net refunds.

Deckers raised its diluted earnings-per-share outlook for the fiscal year ending March 31, 2027, to a range of $7.80–$7.95, including about $0.52 per share from the impact of tariff refunds. At the same time, it lowered its consolidated sales outlook to $5.700–$5.725 billion. The company expects HOKA sales to grow at a high-single-digit rate and UGG sales at a low-single-digit rate. Wall Street had estimated average annual sales of about $5.88 billion before the update, compared with a midpoint of $5.71 billion for the new range, according to Investing.com. Caroti said the updated outlook reflects “a more conservative approach to growth over the next two quarters” as consumers face mounting economic pressures.

The company said that, through October 8, 2026, it had received $87.9 million in net refunds of fees under the International Emergency Economic Powers Act, plus $4.7 million in related interest. It repurchased about 3.2 million shares for $299.3 million during the fiscal second quarter. From the start of the fiscal year through September 30, 2026, total repurchases were about 6.5 million shares worth $637.5 million. These figures highlight the impact of refunds on the period’s earnings and the annual outlook, alongside the company’s continued return of capital to shareholders through buybacks. In after-hours trading following the results announcement, the stock fell 9.6%, according to an Investing.com report published October 22.

The following day, Piper Sandler downgraded the stock from “Neutral” to “Underweight” and cut its price target to $75 from $100, according to Investing.com. The report said the quarter marked the first miss on fiscal second-quarter sales expectations in at least five years. On October 23, the stock closed at $81.09, according to EL7 data. The company had said the fiscal second quarter covered the period ended September 30, 2026, and that fiscal 2027 ends on March 31, 2027. No upcoming events were listed on the investor relations calendar at the time of review; the latest listed event was the second-quarter earnings call on October 22, 2026.