Results
SECOND QUARTER FY 2027 REVENUE INCREASED TO A RECORD $1.48 BILLION
SECOND QUARTER FY 2027 DILUTED EPS INCREASED 27% TO $2.31, INCLUDING A $0.28 BENEFIT RELATED TO IEEPA TARIFF NET REFUNDS RECEIVED IN THE QUARTER (1)
Outlook
FULL YEAR FY 2027 DILUTED EPS GUIDANCE RAISED TO RANGE OF $7.80-$7.95, INCLUDING AN APPROXIMATE $0.52 BENEFIT RELATED TO IEEPA TARIFF NET REFUNDS RECEIVED (2)Guidance raised
Capital return
COMPANY REPURCHASED $299 MILLION OF SHARES IN SECOND QUARTER FY 2027, BRINGING 1H FY 2027 TOTAL TO $637 MILLION
Results
Goleta, California (October 22, 2026) -- Deckers Brands (NYSE: DECK), a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, today announced financial results for the second fiscal quarter ended September 30, 2026.
The Company also provided an update to its financial outlook for the full fiscal year ending March 31, 2027.
Management commentary
“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,” said Stefano Caroti, President and Chief Executive Officer.
“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.
We remain confident in the significant global opportunities ahead for both HOKA and UGG, and our ability to drive sustainable growth and create long-term shareholder value."
Results
Net sales increased 3.5% to $1.481 billion compared to $1.431 billion.
On a constant currency basis, net sales increased 2.8%.
HOKA® brand net sales increased 6.8% to $677.2 million compared to $634.1 million.
UGG® brand net sales increased 3.5% to $786.4 million compared to $759.6 million.
Other brands net sales decreased 54.3% to $17.0 million compared to $37.2 million.
Wholesale net sales increased 5.5% to $1.093 billion compared to $1.036 billion.
Direct-to-Consumer (DTC) net sales decreased 1.8% to $387.5 million compared to $394.6 million.
7DTC comparable net sales decreased 6.4%.
Domestic net sales decreased 0.4% to $835.8 million compared to $839.5 million.
International net sales increased 9.0% to $644.7 million compared to $591.3 million.
Gross margin (1) was 60.5% compared to 56.2%.
Selling, General, and Administrative (SG&A) expenses were $505.7 million compared to $477.3 million.
Operating income (1) was $389.5 million compared to $326.5 million.
Diluted earnings per share (1) was $2.31 compared to $1.82.
6(1) During the second quarter of fiscal year 2027, the Company received International Emergency Economic Powers Act ("IEEPA") tariff net refunds totaling $46.0 million, plus associated interest of $3.0 million, which were recognized as a reduction of cost of sales and an increase to total other income, respectively.
3The net benefit to both gross margin and operating margin was approximately 310 basis points.
5Net of tax, this resulted in an approximate $0.28 benefit to second quarter fiscal year 2027 diluted earnings per share.
Net sales in the above results for the respective Other brands, Wholesale channel, and Domestic geography include current fiscal year declines related to the phase-out of Koolaburra brand standalone operations.
Cash and cash equivalents were $1.210 billion compared to $1.414 billion.
Inventories were $860.8 million compared to $835.6 million.
Corporate events
The Company had no outstanding borrowings.
Capital return
During the second fiscal quarter, the Company repurchased approximately 3.2 million shares of its common stock for a total of $299.3 million at a weighted average price paid per share of $93.65.
Fiscal year to date through September 30, 2026, the Company repurchased approximately 6.5 million shares of its common stock for a total of $637.5 million at a weighted average price paid per share of $98.77.
As of September 30, 2026, the Company had approximately $4.4 billion remaining under its stock repurchase authorization.
Outlook
Full Fiscal Year 2027 Outlook (2) for the Twelve Month Period Ending March 31, 2027
Net consolidated sales are now expected to be in the range of $5.700 billion to $5.725 billion.
8HOKA is now expected to increase by a high-single-digit percentage versus last year.
UGG is now expected to increase by a low-single-digit percentage versus last year.
Gross margin is now expected to be approximately 58.5%.
SG&A expenses as a percentage of net sales are now expected to be approximately 35.5%.
Operating margin is now expected to be approximately 23%.
Effective tax rate is still expected to be approximately 23%.Guidance reaffirmed
Diluted earnings per share is now expected to be in the range of $7.80 to $7.95.
The earnings per share guidance assumes the repurchase of shares with a value equal to $1.0 billion.
1(2) Through October 8, 2026, the Company has received IEEPA tariff net refunds totaling $87.9 million, plus associated interest of $4.7 million, which have been factored into our updated outlook as a reduction of cost of sales and an increase to total other income, respectively.Guidance raised
4The net benefit to both gross margin and operating margin is approximately 150 basis points.
2Net of tax, this resulted in an approximate $0.52 benefit to the Company's projected full fiscal year 2027 diluted earnings per share.Guidance raised
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