Deckers Outdoor Corporation reported record revenue of $1.48 billion for the second quarter of fiscal year 2027, a 3.5% increase year-over-year. While revenue fell short of the $1.51 billion analyst expectation, diluted EPS of $2.31 significantly exceeded the $1.82 estimate, aided by disciplined expense control and a non-recurring tariff refund benefit. Consequently, the company raised its full-year earnings outlook to a range of $7.80 to $7.95 per share.
Key Highlights
- Diluted EPS reached $2.31, which included a $0.28 per share benefit from $46.0 million in IEEPA tariff net refunds received during the quarter.
- Gross margin expanded significantly to 60.5% from 56.2% in the prior year, driven by brand mix and the 310 basis point impact of tariff refunds.
- HOKA brand sales grew 6.8% to $677.2 million, while UGG brand revenue increased 3.5% to $786.4 million.
- Wholesale channel revenue rose 5.5% to $1.09 billion, helping to offset a 1.8% decline in Direct-to-Consumer (DTC) sales.
- Management executed $299 million in share repurchases during the quarter, with $4.4 billion remaining under the current authorization.