Deckers Shares Slide After Revenue Miss and Cautious Outlook for Hoka, UGG

Shares of Deckers Brands (NYSE: DECK), the maker of Hoka running shoes and UGG boots, fell about 7% in extended trading on Thursday, October 22, 2026, after the company's quarterly revenue came in below Wall Street expectations and its full-year sales forecast trailed analyst estimates, CNBC reported.

Quarter at a glance

Net sales for the fiscal second quarter ended September 30 rose 3.5% to a record $1.481 billion from $1.431 billion a year earlier, the company said in its earnings release. Analysts polled by LSEG had expected $1.51 billion, according to CNBC, which added that revenue for both Hoka and UGG fell short of StreetAccount estimates.

Hoka sales increased 6.8% to $677.2 million and UGG sales rose 3.5% to $786.4 million. Other brands declined 54.3% to $17.0 million, reflecting the phase-out of standalone Koolaburra operations. Wholesale sales grew 5.5% to $1.093 billion, while direct-to-consumer sales slipped 1.8% to $387.5 million, with comparable direct-to-consumer sales down 6.4%. International sales climbed 9.0% to $644.7 million, and domestic sales eased 0.4% to $835.8 million.

Profit was stronger. Diluted earnings per share rose 27% to $2.31 from $1.82, and net income increased to $313.1 million from $268.2 million. The latest figures include a benefit of about 28 cents a share from net refunds of tariffs collected under the International Emergency Economic Powers Act (IEEPA). Gross margin widened to 60.5% from 56.2%, about 310 basis points of which came from the refunds, the company said.

Outlook trimmed for the second half

Deckers now expects fiscal 2027 net sales of $5.700 billion to $5.725 billion, below the $5.88 billion consensus cited by CNBC. It forecast high-single-digit percentage growth for Hoka and low-single-digit growth for UGG, a gross margin of about 58.5% and an operating margin of about 23%. The company raised its full-year earnings guidance to $7.80 to $7.95 a share, a range that includes an estimated 52-cent benefit from tariff refunds received through October 8 and assumes $1.0 billion of share repurchases.

For the fiscal third quarter, management guided to low-single-digit revenue growth and diluted earnings of $3.52 to $3.60 a share, including about 24 cents from tariff refunds, according to the earnings call transcript.

Promotions and a logistics disruption

"As the quarter progressed, the U.S. marketplace became increasingly promotional," Chief Financial Officer Steve Fasching said on the call, noting that the company held to full-price selling as discounting rose, particularly in athletic footwear. Chief Executive Stefano Caroti said consumers were "becoming more purposeful in their spending and prioritizing products with immediate relevance and utility," and acknowledged that some Hoka franchise updates released in calendar 2026 did not resonate as well as intended.

Executives also said service disruptions at a European third-party logistics provider delayed about $22 million of shipments during a peak period, and Fasching cautioned that some of those orders could be canceled rather than recovered later in the year.

Buybacks and balance sheet

Deckers repurchased about 3.2 million shares for $299.3 million in the quarter at an average price of $93.65, bringing first-half buybacks to $637.5 million. It had about $4.4 billion left under its authorization, held $1.210 billion in cash and had no outstanding borrowings at September 30, according to the release. Inventories stood at $860.8 million, compared with $835.6 million a year earlier.

Sources

• Deckers Brands: Second Quarter Fiscal Year 2027 Financial Results (Oct. 22, 2026)
• CNBC: Stocks making the biggest moves after hours (Oct. 22, 2026)
• The Motley Fool: Deckers Q2 fiscal 2027 earnings call transcript (Oct. 22, 2026)