Corrected: Deckers Outdoor Q2 revenue misses estimates despite higher Hoka, Ugg sales

Deckers Outdoor

Yesterday 21:13

Corrects EPS basis to diluted from adjusted in Overview bullet 2 and Key Details table

Overview
US footwear and apparel maker's fiscal Q2 revenue rose 3.5% but missed analyst expectations
EPS for fiscal Q2 rose 27%, aided by tariff refunds
Company repurchased $299 mln of shares in fiscal Q2

Outlook
Deckers sees FY 2027 net sales between $5.7 bln and $5.725 bln
Company raises FY 2027 diluted EPS guidance to $7.80-$7.95
Deckers expects FY 2027 gross margin of about 58.5%

Result Drivers
TARIFF REFUNDS - IEEPA tariff refunds boosted gross margin and EPS by reducing cost of sales
BRAND PERFORMANCE - Higher sales from HOKA and UGG brands offset declines in other brands
CHANNEL MIX - Growth in wholesale sales offset declines in direct-to-consumer channel

Company press release: ID:nBw1Pt6Wxa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.48 bln
$1.51 bln (19 Analysts)
Q2 EPS
 
$2.31
 
Q2 Gross Margin
 
60.50%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for Deckers Outdoor Corporation is $115.00, about 34.5% above its October 21 closing price of $85.49
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Oct 20 - Germany's Adidas raises full-year profit outlook after record quarter
Oct 20 - Adidas prelim Q3 operating profit rises as full-price sales support gross margin gains
Oct 20 - 7-Eleven ends lawsuit against Nike over shoes with store's colors

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)