Deckers Outdoor Cuts Full-Year Revenue Outlook as HOKA and UGG Demand Slows, Stock Drops 15%

Deckers Outdoor reported mixed second-quarter fiscal 2027 results on October 22, posting record revenue of $1.48 billion, up 3.5% year over year, but falling short of analyst expectations of roughly $1.51 billion. Earnings per share of $2.31 beat estimates by $0.24, though the beat was flattered by a $0.28 benefit from IEEPA tariff net refunds received in the quarter. Shares fell as much as 15% in Friday premarket trading before paring losses to around 5-8% during the session, with the stock touching $78.12 at its low.

The sharper market reaction came from the company's revised full-year guidance. Deckers cut its fiscal 2027 revenue outlook to $5.71 billion at the midpoint, down from a prior forecast of roughly $5.89 billion and approximately 2.8% below analyst estimates, citing demand moderation for both the HOKA and UGG brands. It simultaneously raised its full-year diluted EPS guidance to a range of $7.80 to $7.95, but that figure included an approximate $0.52 benefit from IEEPA tariff refunds, meaning underlying earnings momentum was softer than the headline number implied.

Within the quarter, HOKA grew total revenue 7% year over year, with wholesale rising 9% to $444 million and direct-to-consumer up 4% to $234 million. Analysts flagged weak DTC trends and growing promotional pressures as near-term concerns across both HOKA and UGG.

A wave of analyst actions followed the report. Piper Sandler downgraded Deckers to Underweight from Neutral with a price target of $75, citing signs of brand maturity at both HOKA and UGG. Telsey, Needham, Stifel, Truist, and Williams Trading all cut their price targets, with Truist pointing to promotional pressures and Williams Trading highlighting weak direct-to-consumer trends. UBS struck a more measured tone, saying both brands remained healthy despite the choppy quarter.