Deckers Raises Fiscal 2027 Earnings Outlook After Tariff Refunds

The Tip Desk · October 23, 2026 · 3 min read

The footwear maker lifted full-year diluted EPS guidance to $7.80–$7.95 after recording $46.0 million of IEEPA tariff net refunds in the second quarter.

Deckers Brands (DECK), a global designer and distributor of footwear, apparel, and accessories, raised its full-year fiscal 2027 diluted earnings-per-share outlook to a range of $7.80 to $7.95 after a second quarter in which net sales reached a record $1.481 billion and IEEPA tariff refunds lifted both gross margin and earnings.

The company said the updated outlook includes an approximate $0.52 net-of-tax benefit from IEEPA tariff net refunds received through October 8, 2026, totaling $87.9 million plus $4.7 million of associated interest, and does not assume any further collection of tariff refunds.

Net sales growth slowed to 3.5% from 5.7% in the first quarter of fiscal 2027. On a constant-currency basis, the increase was 2.8%. HOKA net sales rose 6.8% to $677.2 million, after a 7.7% increase in the prior quarter. UGG net sales rose 3.5% to $786.4 million, after 4.9% growth earlier. Other brands, which include the phase-out of Koolaburra standalone operations, fell 54.3% to $17.0 million.

Wholesale net sales increased 5.5% to $1.093 billion, a faster pace than the 2.2% rise in the first quarter. Direct-to-consumer net sales reversed to a 1.8% decline to $387.5 million, with comparable DTC sales down 6.4%, after a 13.0% increase and 6.8% comparable growth in the first quarter. Domestic net sales fell 0.4% to $835.8 million. International net sales rose 9.0% to $644.7 million.

Gross margin was 60.5%, including an approximately 310-basis-point benefit from $46.0 million of IEEPA tariff net refunds and $3.0 million of associated interest recognized in the quarter. Operating income was $389.5 million. Diluted earnings per share rose 27% to $2.31, including an approximate $0.28 net-of-tax benefit from those refunds. Selling, general, and administrative expenses were $505.7 million.

President and Chief Executive Officer Stefano Caroti said the company delivered earnings above its expectations by maintaining disciplined marketplace management and a focus on expense control in a challenging consumer environment, and that it is taking deliberate actions in the back half of fiscal 2027 to strengthen its connection with consumers, sharpen execution, and concentrate resources behind its greatest opportunities. The company said it remains confident in global opportunities for HOKA and UGG.

For the twelve months ending March 31, 2027, net consolidated sales are now expected in the range of $5.700 billion to $5.725 billion. HOKA is now expected to increase by a high-single-digit percentage versus last year, and UGG by a low-single-digit percentage. Gross margin is now expected at approximately 58.5%, SG&A at approximately 35.5% of net sales, and operating margin at approximately 23%. The effective tax rate is still expected at approximately 23%. The earnings-per-share guidance assumes the repurchase of shares with a value equal to $1.0 billion.

In the second quarter the company repurchased approximately 3.2 million shares for $299.3 million at a weighted average price of $93.65 a share. Fiscal-year-to-date buybacks through September 30, 2026 totaled $637.5 million. Remaining authorization was approximately $4.4 billion as of that date. Cash and cash equivalents were $1.210 billion. Inventories were $860.8 million. The company had no outstanding borrowings.

Deckers also appointed Rati Sahi Levesque, president and chief executive officer of The RealReal, to its board effective December 1, 2026, with Lauri Shanahan retiring from the board.