Deckers Brands Stock Drops 15% After Q2 Revenue Miss and Lowered Full-Year Sales Guidance

Deckers Brands shares fell roughly 15% on October 22, 2026, after the company reported second-quarter fiscal 2027 results that mixed a profit beat with a revenue miss and trimmed its full-year sales outlook, stoking investor concern that its two flagship brands are losing momentum.

For the quarter ended September 30, 2026, Deckers posted record revenue of $1.48 billion and diluted earnings per share of $2.31, a 27% increase from a year earlier. The EPS figure included a $0.28 benefit tied to IEEPA tariff net refunds received in the quarter. While the bottom line beat Wall Street estimates, sales fell short of expectations, with HOKA running-shoe revenue softening and UGG boot sales outperforming relative to forecasts.

The sharper market reaction came from the company's updated guidance. Deckers now expects full-year revenue of approximately $5.35 billion, below the roughly $5.45 billion analysts had projected, reflecting what management described as tariff-related demand pressure and cautious consumer spending. Full-year diluted EPS guidance was raised to a range of $7.80 to $7.95, but that figure includes an approximate $0.52 benefit from IEEPA tariff refunds. The company also disclosed it repurchased $299 million of shares in the second quarter, bringing the first-half total to $637 million.