Deckers Outdoor Slides After Revenue Miss and Lowered Full-Year Sales Guidance Despite EPS Beat

Deckers Outdoor posted mixed second-quarter fiscal 2027 results on October 22, sending shares down roughly 8 to 15 percent in Friday premarket 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.

HOKA remained the faster-growing segment, with total brand revenue up 7% year over year, wholesale climbing 9% to $444 million and direct-to-consumer rising 4% to $234 million. UGG also contributed to growth, though both brands showed signs of demand moderation that analysts flagged as a concern.

The company cut its full-year fiscal 2027 revenue guidance to $5.71 billion at the midpoint, down from a prior forecast of roughly $5.89 billion and approximately 2.8% below analyst consensus. It simultaneously raised its full-year diluted EPS guidance to a range of $7.80 to $7.95, a figure that includes an approximate $0.52 benefit from IEEPA tariff refunds. The divergence between a higher profit outlook and lower sales forecast, driven in part by tariff windfalls rather than organic business strength, unsettled investors.

Analysts responded with a wave of target cuts and at least one downgrade. Piper Sandler cut Deckers to Underweight from Neutral with a price target of $75, citing maturity signals in both HOKA and UGG. Telsey, Needham, Stifel, and Truist all trimmed their price targets, with Truist specifically pointing to promotional pressures as a headwind.