Deckers Outdoor Q2 revenue misses estimates depite higher Hoka, Ugg sales

Overview

• US footwear and apparel maker's fiscal Q2 revenue rose 3.5% but missed analyst expectations

• Adjusted EPS for fiscal Q2 rose 27% and beat analyst expectations, aided by tariff refunds

• Company repurchased $299 mln of shares in fiscal Q2

Outlook

• Deckers sees FY 2027 net sales between $5.7 bln and $5.725 bln

• Company raises FY 2027 diluted EPS guidance to $7.80-$7.95

• Deckers expects FY 2027 gross margin of about 58.5%

Result Drivers

• TARIFF REFUNDS - IEEPA tariff refunds boosted gross margin and EPS by reducing cost of sales

• BRAND PERFORMANCE - Higher sales from HOKA and UGG brands offset declines in other brands

• CHANNEL MIX - Growth in wholesale sales offset declines in direct-to-consumer channel

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the footwear peer group is "buy"

• Wall Street's median 12-month price target for Deckers Outdoor Corporation is $115.00, about 34.5% above its October 21 closing price of $85.49

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)