Deckers Guides Q3 to Low-Single-Digit Growth as U.S. DTC Slows; FY27 Sales Outlook Cut
DECK is trading near its 52-week low of $77.2 (4.5% above the low).
Summary
Deckers guided third-quarter fiscal 2027 revenue to low-single-digit growth, with HOKA in the low- to mid-single digits and UGG in the low single digits, and EPS of $3.52-$3.60 including a $0.24 tariff-refund benefit. The bigger issue is the full-year top line: management cut FY27 revenue to $5.7B-$5.73B from a $5.88B consensus while raising GAAP EPS to $7.80-$7.95 versus $7.50 expected, so the beat is margin- and refund-driven, not demand-driven. Q2 revenue rose 3.5% to $1.48B but missed the $1.51B estimate, the first sales miss in at least five years, while adjusted EPS of $2.31 beat $1.80. HOKA grew 7% to $677M and UGG 4% to $786M, but UGG direct-to-consumer fell 8% and U.S. promotions pressured domestic DTC; EMEA logistics disruptions also cut about $22M from the quarter. Piper Sandler downgraded to Underweight with a $75 target and Needham cut its target to $96, and the stock was down 5.15% at $80.80, near its 52-week low. Holiday sell-through and whether HOKA reaccelerates are the swing factors for the peak-growth debate.
At the time of this announcement, DECK was trading at $80.70 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11B. The 52-week trading range was $77.20 to $122.29. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.