Companies

Deckers lowers full-year sales outlook

Oct 28, 2026 United States

Despite overall second-quarter sales growth, the California-based company has lowered its net sales outlook for fiscal year 2027, revising downward its growth expectations for Hoka and Ugg

“We delivered earnings above our expectations in the second quarter by maintaining disciplined marketplace management and a focus on expense control in a challenging consumer environment. As we move through the back half of fiscal 2027, we are taking deliberate actions to strengthen our connection with consumers, sharpen execution, and concentrate resources behind our greatest opportunities”, said Stefano Caroti, President and Chief Executive Officer.

Second-Quarter Results

In the second quarter of the 2027 financial year, which ended on the 30^th of September, Deckers reported total net sales of 1.48 billion US dollars. This represents an increase of 3.5%, or 2.8% on a constant currency basis, compared to the same period of the previous financial year.

During this period, the Hoka brand generated net sales of 677.2 million US dollars, while the Ugg brand generated 786.4 million US dollars. This represents respective growth of 6.8% and 3.5% compared to the second quarter of the 2026 financial year. Other brands’ net sales totalled 17.0 million US dollars, decreasing by 54.3% year-on-year.

From a channel perspective, direct-to-consumer (DTC) net sales turned negative in the second quarter of this year, declining by 1.8% to 387.5 million US dollars. Meanwhile, wholesale net sales increased by 5.5% from the second quarter of the 2026 financial year to reach 1.09 billion US dollars.

In the second quarter of this year, domestic net sales fell by 0.4% year-on-year to reach 835.8 million US dollars. Meanwhile, international net sales rose by 9.0% year-on-year to reach 644.7 million US dollars.

Deckers recorded a gross margin of 60.5% in the second quarter, up from 56.2% in the same period a year ago. Operating income also increased, rising from 326.5 million US dollars to 389.5 million US dollars. The company also reported diluted earnings per share of 2.31 US dollars, up from 1.82 US dollars in the second quarter of the previous financial year.

The second-quarter results included net refunds of IEEPA tariffs totalling 46 million US dollars, plus related interest of 3 million US dollars. These refunds boosted gross and operating margins by around 310 basis points and diluted earnings per share by 0.28 US dollars after tax.

Full-Year Outlook

The company now expects full-year consolidated net sales of 5.7 billion to 5.725 billion US dollars, down from its previous forecast of 5.86 billion to 5.91 billion US dollars. Hoka is now projected to grow at a high-single-digit rate, down from low double digits, while UGG is expected to grow at a low-single-digit rate, down from mid-single digits.

Despite the lower sales outlook, it raised its full-year diluted earnings-per-share forecast to 7.80 to 7.95 US dollars, including an estimated 0.52 US dollars benefit from tariff refunds.

Image Credits: hoka.com

United States Companies Deckers hoka Quarter Results Results Ugg