Deckers Lowers Sales Outlook After Slower Hoka, Ugg Growth

Deckers lowered its full-year sales outlook on Oct. 22, 2026, citing slower growth at HOKA and UGG while reporting fiscal second-quarter results and raising full-year earnings per share (EPS) guidance. Management attributed part of the EPS increase to tariff refunds under the International Emergency Economic Powers Act (IEEPA).

Quarter Results and Guidance

For the fiscal second quarter ended Sept. 30, 2026, Deckers reported net sales of $1.481 billion, up 3.5% year over year and 2.8% on a constant-currency basis. Net income was $313.1 million, or $2.31 diluted EPS. Adjusted EPS excluding the tariff-refund benefit was $2.03, exceeding the consensus estimate of $1.79 to $1.82. The reported EPS included a $0.28 benefit from the IEEPA refunds.

Gross margin expanded 430 basis points to 60.5% from 56.2% a year earlier. During the quarter, Deckers recognized $46.0 million in tariff refunds and $3.0 million in related interest, recording the refund as a reduction in cost of sales and the interest as other income.

Deckers trimmed its full-year fiscal 2027 consolidated net-sales guidance to approximately $5.70 billion to $5.73 billion while raising diluted EPS guidance to $7.80 to $7.95. The EPS outlook includes an estimated $0.52 cumulative benefit from the tariff refunds.

Brands and Channel Trends

HOKA net sales rose 6.8% to $677.2 million, while UGG sales increased 3.5% to $786.4 million. Growth was concentrated in wholesale and international markets. Wholesale net sales climbed 5.5% to $1.093 billion, and international net sales rose 9.0% to $644.7 million. Domestic net sales declined 0.4% to $835.8 million. Direct-to-consumer (DTC) net sales fell 1.8% to $387.5 million, with comparable DTC sales down 6.4%, indicating weaker demand in owned channels and stronger performance through partners and overseas.

Net sales for other brands dropped 54.3% to $17.0 million, mainly reflecting the wind-down of standalone Koolaburra operations.

Capital and Cash Position

Deckers ended the quarter with about $1.21 billion in cash and cash equivalents and no outstanding debt. The company repurchased approximately $299 million of shares during the quarter and $637 million in the first half of fiscal 2027.

Management said it will focus in the second half of fiscal 2027 on strengthening consumer connections, improving execution, and concentrating resources on its largest opportunities.

Deckers also announced that Rati Sahi Levesque will join the board effective Dec. 1, 2026, replacing Lauri Shanahan, who will retire on that date.