DECK Q3 deep dive: international growth offsets U.S. promotional headwinds and guidance cut

StoneX Financial initiated coverage of Deckers Outdoor (DECK) with a Buy rating and $110 price target, citing growth in HOKA and UGG brands and attractive valuation. Shares rose 4% on the news.

October's CPI rose 0.4%, above the 0.3% forecast, with core CPI up 0.3% vs. 0.2% expected. This marks the third straight month of higher-than-expected inflation, now at a 5.7% annualized pace, per The Wall Street Journal. The Fed is likely to hike rates in December, with a 0.5% increase now 11% probable. Real wages stagnated, rising 0.4% but offset by inflation. The 10-year Treasury yield hit 5.0%, impacting stock valuations.

Deckers Outdoor reported 2Q 2027 revenue of $1.48B, up 3.5% YoY, and net income of $313.1M, up 16.8% YoY. EPS rose 26.9% to $2.31. Six-month sales increased 4.4%, with international growth at 8.7%. HOKA and UGG sales grew, while other brands declined. The company faces domestic promotional pressures and European logistics disruptions.

Ugg, owned by Deckers Brands, opens its first new store in five years in Brooklyn, focusing on community engagement and local art. The store is part of a strategy to enhance consumer connection, not expand footprint. Deckers Brands reported Q2 net sales of $1.48B, up 3.5%, missing expectations but beating EPS forecasts. Ugg's sales rose 3.5% to $786.4M.

Deckers (DECK) shares fell 5% after missing Q2 sales estimates ($1.48B vs. $1.51B) and cutting its full-year sales outlook to $5.70B-$5.73B. The company maintained 'full-price discipline' amid rival discounts, impacting direct-to-consumer sales. Gross margin rose to 60.5%, but tariff refunds boosted EPS. Analysts are divided on the stock's outlook.

Deckers (DECK) shares fell 3.6% after Q3 2026 revenue missed estimates at $1.48B, though EPS beat at $2.31. The company lowered full-year sales guidance to $5.71B but raised EPS guidance to $7.80-$7.95. HOKA and UGG sales rose, while other brands declined 54.3%.