Deckers trims annual forecast as HOKA and UGG growth cools
Deckers cut its fiscal 2027 revenue outlook to roughly $5.7 billion to $5.73 billion despite record quarterly sales of $1.48 billion. Earnings per share came in at $2.31, helped by tariff refunds, but slower expected growth at HOKA and UGG and softer U.S. demand weighed on the stock. Shares fell about 8% before recovering some ground.
Deckers Outdoor owns HOKA, UGG and Teva. It now expects fiscal 2027 revenue of about $5.70–$5.73 billion, down from $5.86–$5.91 billion. Second-quarter sales reached a record $1.48 billion, up 3.5%, though they fell short of analyst estimates. Earnings of $2.31 per share beat expectations and included tariff-refund benefits.
HOKA sales rose 6.8% to roughly $677 million, and UGG gained 3.5% to about $786 million. Forecast growth for both brands was reduced. U.S. revenue slipped slightly while international sales climbed 9%, and direct-to-consumer results weakened amid softer online demand and more footwear discounting.
The softer outlook may signal that U.S. shoppers are becoming more selective about discretionary footwear, potentially leading to more discounts that could benefit bargain-seeking consumers while pressuring retailers’ margins. Employees and communities linked to Deckers’ brands and supply chain could feel effects if growth slows, and investors may reassess expectations for premium footwear companies. International demand may offset some domestic weakness, but the outcome remains uncertain.