DECKERS BRANDS REPORTS SECOND QUARTER FISCAL YEAR 2027 FINANCIAL RESULTS
DECKERS OUTDOOR CORP (DECK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 DECKERS BRANDS REPORTS SECOND QUARTER FISCAL YEAR 2027 FINANCIAL RESULTS • SECOND QUARTER FY 2027 REVENUE INCREASED TO A RECORD $1.48 BILLION • SECOND QUARTER FY 2027 DILUTED EPS INCREASED 27% TO $2.31, INCLUDING A $0.28 BENEFIT RELATED TO IEEPA TARIFF NET REFUNDS RE
How this was made
The 30-second read
Why it matters
The raised guidance reflects a $0.52 per share benefit from IEEPA tariff refunds and improved gross margin, supporting a bullish outlook.
Market read
Earnings beat and raised guidance are likely to drive short‑term buying interest in DECK.
What to watch
Higher SG&A expenses and inventory buildup could offset margin gains.
Second quarter FY 2027 revenue increased to a record $1.48 billion and diluted EPS increased 27% to $2.31, including a $0.28 benefit related to IEEPA tariff net refunds received in the quarter.
Net sales rose 3.5%, led by HOKA, UGG, wholesale, and international growth, while gross margin expanded to 60.5% and diluted EPS increased 27% to $2.31. Results and raised full-year EPS guidance include material benefits from IEEPA tariff net refunds, while DTC and domestic sales declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $1.48B | – | 3.5% |
| Cost of sales, three months ended September 30GAAP | 585,442 | – | – |
| Gross profit, three months ended September 30GAAP | 895,112 | – | – |
| Gross margin, three months ended September 30GAAP | 60.5% | – | – |
| Selling, general, and administrative expenses, three months ended September 30GAAP | 505,656 | – | – |
| Income from operations, three months ended September 30GAAP | 389,456 | – | – |
| Total other income, net, three months ended September 30GAAP | (13,995) | – | – |
| Income before income taxes, three months ended September 30GAAP | 403,451 | – | – |
| Income tax expense, three months ended September 30GAAP | 90,316 | – | – |
| Net income, three months ended September 30GAAP | 313,135 | – | – |
| Total other comprehensive income, net of tax, three months ended September 30GAAP | 2,550 | – | – |
| Comprehensive income, three months ended September 30GAAP | $315.7M | – | – |
| Basic net income per share, three months ended September 30GAAP | $ 2.32 | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $ 2.31 | – | 27% |
| Weighted-average common shares outstanding, basic, three months ended September 30GAAP | 135,044 | – | – |
| Weighted-average common shares outstanding, diluted, three months ended September 30GAAP | 135,300 | – | – |
| Net sales, six months ended September 30GAAP | $2.50B | – | – |
| Cost of sales, six months ended September 30GAAP | 1,029,810 | – | – |
| Gross profit, six months ended September 30GAAP | 1,470,275 | – | – |
| Selling, general, and administrative expenses, six months ended September 30GAAP | 925,518 | – | – |
| Income from operations, six months ended September 30GAAP | 544,757 | – | – |
| Total other income, net, six months ended September 30GAAP | (27,744) | – | – |
| Income before income taxes, six months ended September 30GAAP | 572,501 | – | – |
| Income tax expense, six months ended September 30GAAP | 129,394 | – | – |
| Net income, six months ended September 30GAAP | 443,107 | – | – |
| Total other comprehensive income, net of tax, six months ended September 30GAAP | 5,837 | – | – |
| Comprehensive income, six months ended September 30GAAP | $448.9M | – | – |
| Basic net income per share, six months ended September 30GAAP | $ 3.24 | – | – |
| Diluted net income per share, six months ended September 30GAAP | $ 3.24 | – | – |
| Weighted-average common shares outstanding, basic, six months ended September 30GAAP | 136,644 | – | – |
| Weighted-average common shares outstanding, diluted, six months ended September 30GAAP | 136,923 | – | – |
| Net sales constant currency change, three months ended September 30non-GAAP | 2.8% | – | 2.8% |
| IEEPA tariff net refunds received during the second quarter of fiscal year 2027other | $46M | – | – |
| Associated interest on IEEPA tariff net refunds received during the second quarter of fiscal year 2027other | $3M | – | – |
| IEEPA tariff net refunds benefit to gross margin and operating margin, second quarter fiscal year 2027other | approximately 310 basis points | – | – |
| IEEPA tariff net refunds benefit to diluted earnings per share, second quarter fiscal year 2027other | approximate $0.28 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| HOKA brand net sales | $677.2M | – | 6.8% |
| UGG brand net sales | $786.4M | – | 3.5% |
| Other brands net salesCurrent fiscal year declines related to the phase-out of Koolaburra brand standalone operations. | $17M | – | decreased 54.3% |
| Wholesale net salesNet sales include current fiscal year declines related to the phase-out of Koolaburra brand standalone operations. | $1.09B | – | 5.5% |
| Direct-to-Consumer (DTC) net salesDTC comparable net sales decreased 6.4%. | $387.5M | – | decreased 1.8% |
| Domestic net salesNet sales include current fiscal year declines related to the phase-out of Koolaburra brand standalone operations. | $835.8M | – | decreased 0.4% |
| International net sales | $644.7M | – | 9.0% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full fiscal year 2027 for the twelve month period ending March 31, 2027 outlook
- Revenue$5.700 billion to $5.725 billion
- Gross marginapproximately 58.5%
- Operating expensesSG&A expenses as a percentage of net sales are now expected to be approximately 35.5%
- Tax rateapproximately 23%
- NoteHOKA is now expected to increase by a high-single-digit percentage versus last year.
- NoteUGG is now expected to increase by a low-single-digit percentage versus last year.
- NoteOperating margin is now expected to be approximately 23%.
- NoteDiluted earnings per share is now expected to be in the range of $7.80 to $7.95.
- NoteThe earnings per share guidance assumes the repurchase of shares with a value equal to $1.0 billion.
- NoteThrough October 8, 2026, the Company has received IEEPA tariff net refunds totaling $87.9 million, plus associated interest of $4.7 million, which have been factored into updated outlook.
- NoteThe net benefit to both gross margin and operating margin is approximately 150 basis points.
- NoteNet of tax, this resulted in an approximate $0.52 benefit to projected full fiscal year 2027 diluted earnings per share.
Capital returns
- The Company repurchased approximately 3.2 million shares of its common stock for a total of $299.3 million at a weighted average price paid per share of $93.65 during the second fiscal quarter.
- Fiscal year to date through September 30, 2026, the Company repurchased approximately 6.5 million shares of its common stock for a total of $637.5 million at a weighted average price paid per share of $98.77.
- As of September 30, 2026, the Company had approximately $4.4 billion remaining under its stock repurchase authorization.
What drove it
- HOKA brand net sales increased 6.8% to $677.2 million.
- UGG brand net sales increased 3.5% to $786.4 million.
- Wholesale net sales increased 5.5% to $1.093 billion.
- International net sales increased 9.0% to $644.7 million.
- The Company received IEEPA tariff net refunds totaling $46.0 million, plus associated interest of $3.0 million, during the second quarter of fiscal year 2027.
- The Company cited disciplined marketplace management and a focus on expense control.
Concerns
- Direct-to-Consumer net sales decreased 1.8% to $387.5 million, and DTC comparable net sales decreased 6.4%.
- Domestic net sales decreased 0.4% to $835.8 million.
- Other brands net sales decreased 54.3% to $17.0 million.
- The outlook includes IEEPA tariff net refunds received through October 8, 2026 but does not assume any further collection of tariff refunds.
- The Company identified macroeconomic and geopolitical conditions, consumer confidence and discretionary spending, inflationary pressures, foreign currency exchange rate fluctuations, global trade policy, tariffs, trade restrictions, and supply chain disruption as factors that could affect results.
What to watch
- Whether HOKA increases by a high-single-digit percentage versus last year and UGG increases by a low-single-digit percentage versus last year under the full-year outlook.
- DTC comparable net sales following the reported 6.4% decrease.
- Domestic sales performance following the reported 0.4% decrease.
- Gross margin relative to the approximately 58.5% full-year outlook and the stated approximately 150 basis points benefit from IEEPA tariff net refunds.
- Execution of the $1.0 billion share-repurchase assumption embedded in diluted EPS guidance.
Balance sheet and cash flow
- Cash and cash equivalents were $1.210 billion compared to $1.414 billion as of September 30, 2025.
- Inventories were $860.8 million compared to $835.6 million as of September 30, 2025.
- The Company had no outstanding borrowings.
- Cash and cash equivalents were $ 1,209,722 as of September 30, 2026, compared to $ 1,907,249 as of March 31, 2026.
- Inventories were 860,849 as of September 30, 2026, compared to 487,018 as of March 31, 2026.
- Trade accounts receivable, net were 675,153 as of September 30, 2026, compared to 318,978 as of March 31, 2026.
- Total assets were $ 3,948,445 as of September 30, 2026, compared to $ 3,687,765 as of March 31, 2026.
- Total stockholders' equity was 2,321,486 as of September 30, 2026, compared to 2,499,638 as of March 31, 2026.
Analysis
Deckers reported second-quarter net sales of $1.481 billion, up 3.5%, with 2.8% growth on a constant-currency basis. HOKA increased 6.8% to $677.2 million and UGG increased 3.5% to $786.4 million. Wholesale sales increased 5.5% and international sales increased 9.0%, providing the principal reported areas of growth.
The channel and geographic mix was uneven. DTC net sales decreased 1.8% to $387.5 million and DTC comparable net sales decreased 6.4%. Domestic sales decreased 0.4%, while international sales rose 9.0%. Other brands sales decreased 54.3%; the Company said current-year declines in Other brands, Wholesale, and Domestic included effects from the phase-out of Koolaburra brand standalone operations.
Profitability improved materially in the quarter. Gross margin was 60.5% compared to 56.2%, operating income was $389.5 million compared to $326.5 million, and diluted EPS was $2.31 compared to $1.82. The quarter included $46.0 million of IEEPA tariff net refunds and $3.0 million of associated interest. The Company said the refunds produced an approximately 310 basis point net benefit to gross margin and operating margin and an approximate $0.28 benefit to diluted EPS, net of tax.
Capital allocation remained centered on repurchases. Deckers repurchased approximately 3.2 million shares for $299.3 million during the second quarter and approximately 6.5 million shares for $637.5 million fiscal year to date through September 30, 2026. Cash and cash equivalents were $1.210 billion, inventories were $860.8 million, and the Company had no outstanding borrowings.
For fiscal 2027, Deckers now expects net consolidated sales of $5.700 billion to $5.725 billion, gross margin of approximately 58.5%, operating margin of approximately 23%, and diluted EPS of $7.80 to $7.95. The outlook includes $87.9 million of IEEPA tariff net refunds and $4.7 million of associated interest received through October 8, 2026, with an approximate $0.52 net-of-tax benefit to projected full-year diluted EPS. The outlook does not assume further tariff refund collections.
Management, verbatim
We delivered earnings above our expectations in the second quarter by maintaining disciplined marketplace management and a focus on expense control in a challenging consumer environment.
Stefano Caroti, President and Chief Executive Officer
As we move through the back half of fiscal 2027, we are taking deliberate actions to strengthen our connection with consumers, sharpen execution, and concentrate resources behind our greatest opportunities.
Stefano Caroti, President and Chief Executive Officer
We remain confident in the significant global opportunities ahead for both HOKA and UGG, and our ability to drive sustainable growth and create long-term shareholder value.
Stefano Caroti, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so reported results cannot be compared with prior guidance.
- Operating cash flow was not reported.
- Capital expenditures were not reported.
- Free cash flow was described as a non-GAAP measure but no free cash flow figure was reported.
- Dividend amount and dividend declaration information were not reported.
- Non-GAAP diluted earnings per share was not reported.
- Sequential comparisons for reported operating metrics were not reported.
- A numerical inventory outlook was referenced in forward-looking statements but was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Deckers Brands (NYSE: DECK) filed an 8‑K with Q2 FY2027 results, highlighting record revenue, EPS beat, and a raised FY EPS outlook.
Ticker impact
Deckers Brands reported Q2 FY2027 results and raised full-year diluted EPS guidance to $7.80‑$7.95.
likely upward pressure as investors price in higher EPS expectations.
Guidance raise is a material new fact for a large‑cap consumer discretionary company, indicating improved profitability and cash flow.
Market effects
Positive earnings outlook may boost peer consumer‑discretionary footwear and apparel stocks.
U.S. consumer discretionary sector may see modest gains.
Limited to U.S. and international markets where Deckers' brands (HOKA, UGG) are sold.
Counterpoint
If the guidance assumes continued tariff refunds, any reversal could hurt earnings.
Key entities
- ExecutiveStefano Caroti
President and CEO of Deckers Brands, quoted on earnings performance.
