EarningsQ2 2027 Earnings Report
DE:DO2 Q2 2027 EPS Results
Actual EPS€2.06
Consensus EPS€1.60
Beat/MissBeat by +€0.46
One Year Ago EPS€1.62
DE:DO2 Q2 2027 Revenue Results
Actual Revenue€1.32B
Expected Revenue€1.35B
Beat/MissMissed by -€23.09M
YoY Revenue Growth+4.05%
Earnings Announcement Details
QuarterQ2 2027
Date10/22/2026
TimeAfter Close
Conference CallThursday, October 22, 2026
DE:DO2 Upcoming Earnings
Deckers Outdoor's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:DO2 Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive, supported by 3.5% revenue growth, strong HOKA and UGG wholesale performance, healthy full-price selling, improved underlying margins, 11.5% adjusted EPS growth, significant share repurchases, and a raised full-year EPS outlook. The main challenges were softer U.S. DTC trends, increased promotional pressure, consumer spending caution, EMEA logistics disruptions, selected HOKA product misses, and a more measured near-term revenue outlook. Management remained confident in the long-term health and growth potential of both brands.Company Guidance
Revenue Growth and Strong Adjusted EPS Performance
Second-quarter revenue increased 3.5% year over year to $1.48 billion, driven by HOKA growth of 7% and UGG growth of 4%. Diluted EPS was $2.31, up 27% from $1.82, including a $0.28 benefit from IEEPA net tariff refunds. Excluding that benefit, diluted EPS was $2.03, up 11.5% year over year and above the high end of the company's guidance range.
Healthy Gross Margin and Operating Margin
Second-quarter gross margin was 60.5%, up from 56.2% last year, including an approximately 310 basis point benefit from IEEPA tariff refunds. Excluding the refund benefit, gross margin improved by 120 basis points, driven by favorable full-price selling and product mix. Operating margin was 26.3%, or 23.2% excluding the net IEEPA refund benefit, which was 40 basis points above last year's 22.8%.
HOKA Delivered Global Growth
HOKA global revenue increased 7% to $677 million. Wholesale revenue increased 9% to $444 million and DTC revenue increased 4% to $234 million. The brand delivered strong sell-through across domestic and international wholesale regions and maintained a high degree of full-price selling.
UGG Wholesale Growth and Brand Momentum
UGG global revenue increased 4% to $786 million, led by wholesale growth of 7% to $641 million. Management said wholesale performance was healthy across U.S. and international regions and that UGG had positive indicators of brand health and interest heading into the holiday season.
International Markets Remained a Strength
International continued to be an area of strength. APAC delivered the company's highest percentage growth and was a meaningful contributor to incremental year-over-year dollar growth in the quarter. Management also said demand signals in EMEA remained strong.
Full-Price Selling Discipline Protected Profitability
The company maintained full-price discipline despite increased promotional activity, particularly in U.S. athletic footwear. Management said favorable full-price selling contributed to the 120 basis point underlying gross-margin improvement and supported better margins even as U.S. DTC performance was pressured.
Share Repurchases and Strong Balance Sheet
Deckers repurchased approximately $299 million of shares during the quarter at an average price of $93.65. During the first six months of fiscal 2027, the company repurchased $637 million, representing approximately 5% of outstanding common stock, with approximately $4.4 billion remaining under its authorization. The company ended September with $1.2 billion of cash and equivalents, no outstanding borrowings, and inventory of $861 million.
Raised Fiscal-Year EPS and Margin Outlook
The company raised fiscal-year diluted EPS guidance to $7.80-$7.95, including IEEPA net tariff refunds and associated interest received to date and assuming $1 billion of fiscal 2027 share repurchases. Gross margin is now expected to be approximately 58.5%, and operating margin approximately 23%, inclusive of IEEPA refunds received to date. Excluding those refunds, gross margin would be 57% and operating margin would still be slightly better than 21.5%.
IEEPA Tariff Refund Benefit
The updated outlook includes an approximately $88 million IEEPA tariff refund benefit in cost of sales, net of cost-sharing arrangements with independent manufacturers, representing approximately 90% of the amounts submitted. The company said it had not factored any remaining unreceived amounts into forward-looking guidance.
HOKA Product Pipeline and Innovation
Management highlighted a product pipeline including Bondi 10, Mach Pro, Mach 8, Fly Pace at $115, Bondi Ultra X at $325, and the lifestyle-oriented Cielo 70. Bondi 10 is scheduled to launch in January, Mach Pro in April, and Bondi Ultra X in June. Testing of Mach Pro was described as exceptional, bookings were very strong, and early account reactions to Mach 8 were excellent.
HOKA Distribution Expansion Opportunity
Management said HOKA remains in much less distribution than many peers in sporting goods and athletic specialty, with ample opportunity for expansion. Thoughtful wholesale distribution expansion is planned in the U.S. and Europe beginning in spring and continuing into fall, supported by more purposeful market segmentation.
UGG Product and Category Expansion
UGG generated positive responses from Lowmel, Goldenstar Evelina, Zora, Quill, and fleece-led apparel. Management said consumers were responding to fresh expressions of iconic franchises, new categories, sneakers, clogs, apparel, and head-to-toe UGG offerings.
UGG Holiday Execution Plan
UGG is targeting its largest quarter in its nearly 50-year history. The company plans coordinated marketing, an enhanced digital experience, and product storytelling anchored in its Gift the Feeling holiday campaign, while using selective promotions to protect long-term brand health. Early-season demand for Sunburst, Classic Tall, and Classic Mini Dipper Legwarmer exceeded expectations.
Continued Investment in Brands and Capabilities
The company said it will continue investing in product excellence, global marketing capabilities, digital presence, loyalty programs, point-of-sale execution, and technology. Marketing and technology were the primary drivers of year-over-year SG&A investment, while management said financial strength provides capacity to invest behind long-term brand opportunities.
New Board Appointment
Rati Sahi Levesque will join the Deckers board effective December 1st. Management highlighted her more than 15 years of retail leadership experience and expertise in digital innovation, online brand positioning, and consumer engagement.
DE:DO2 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed