Deckers Outdoor Shares Slide 15% After Revenue Miss and Lowered Full-Year Sales Outlook

Deckers Outdoor posted mixed second-quarter fiscal 2027 results on October 22, sending shares down roughly 15% in Friday pre-market trading. Revenue rose 3.5% year over year to a record $1.48 billion but fell short of analyst expectations of approximately $1.51 billion. Earnings per share of $2.31 beat estimates by $0.24, though the beat included a $0.28 benefit from IEEPA tariff net refunds received during the quarter.

The company cut its full-year fiscal 2027 revenue guidance to $5.71 billion at the midpoint, down from its prior forecast of roughly $5.89 billion and about 2.8% below analyst estimates. It simultaneously raised its full-year diluted EPS guidance to a range of $7.80-$7.95, which included an approximate $0.52 benefit from IEEPA tariff refunds. The diverging guidance, stronger profit but weaker sales, reflected concerns about tariff costs and cautious consumer spending weighing on demand for Hoka running shoes and UGG boots, the two brands that drive the bulk of Deckers revenue. Hoka sales softened while UGG outperformed expectations in the quarter.

Deckers also repurchased $299 million in shares during the second quarter, bringing the first-half fiscal 2027 total to $637 million. Following the results, Needham cut its price target on the stock, and multiple analysts reduced their forecasts, citing the weak sales outlook and signs that Hoka's rapid growth trajectory may be losing momentum.