Q2 2027 Results

Deckers Outdoor reported second-quarter fiscal 2027 revenue of $1.48 billion, up 3.5% year-over-year but slightly below internal expectations.

HOKA Growth Slows

HOKA revenue grew 7% to $677 million, a sharp deceleration from its recent trajectory, while UGG rose 4% to $786 million.

Revenue Miss

The miss was overshadowed by an earnings beat: diluted EPS of $2.31 included a $0.28 benefit from IEEPA tariff refunds.

Revised Outlook

Management cut its full-year revenue outlook to $5.7, $5.725 billion, with HOKA now expected to grow high single digits and UGG low single digits.

CEO Statement

CEO Stefano Caroti said Deckers will not 'trade brand equity for short-term revenue,' prioritizing full-price selling and margins over chasing volume.

“Deckers will not 'trade brand equity for short-term revenue'”

Gross Margin Boost

Gross margin expanded 430 basis points to 60.5%, with 310 basis points from IEEPA tariff refunds and 120 basis points from full-price discipline.

Tariff Refund Impact

The $88M IEEPA tariff refund benefit boosted diluted EPS to $2.31, including a $0.28 benefit from the refund.

Product Pipeline

Deckers highlighted Bondi 10, Mach Pro, and expanded price architecture for calendar 2027, with strong bookings for Mach Pro.

Board Update

Rati Sahalevasky joined the board effective December 1st, replacing Lauri Shanahan who retired.

Q3 Guidance

For Q3, Deckers expects revenue growth in low single digits, with UGG up low single digits and HOKA up low-to-mid single digits.

Investor Response

Analysts pressed on long-term growth, with Caroti emphasizing that the HOKA deceleration is temporary and brand health remains strong.