Deckers sees slower brand growth as tariff refunds lift earnings

Deckers Brands ($DECK) reported fiscal second-quarter 2027 revenue of $1.48 billion, up 3.5%, as Hoka sales increased 6.8% to $677.2 million and UGG sales grew 3.5% to $786.4 million. Direct-to-consumer comparable sales fell 6.4%. Earnings increased to $2.31 per share from $1.82, but included a $0.28 benefit from tariff refunds.

Gross margin rose to 60.5% from 56.2%, with refunds accounting for 310 basis points of the improvement. Management set fiscal 2027 sales expectations at $5.700–$5.725 billion and earnings at $7.80–$7.95 per share. The fiscal 2027 earnings outlook includes a $0.52 tariff-refund benefit. The results therefore combine continued brand expansion with weaker direct demand, and the refund contribution limits how much of the profit improvement should be treated as recurring operating progress.

Sources:

• Issuer release via MarketScreener