Deckers Stock Sinks 53% in 2025 as Focus Turns to 2026 Recovery Drivers

Overview

• Fiscal second-quarter revenue rose 9% year over year, with U.S. sales up 1.7% versus a 29.3% surge internationally, which now accounts for more than 40% of revenue.
• Management’s full-year outlook calls for low-teens growth at Hoka, while UGG is guided to grow only in the low-to-mid single digits.
• Gross margin ticked up to 56.2% from 55.9%, signaling limited reliance on markdowns despite softer domestic demand.
• Recent updates highlight momentum in China and EMEA, a first store opening in Germany, and Hoka market-share gains alongside stronger direct-to-consumer performance in Europe.
• Weak U.S. consumer spending and earlier tariff-related headwinds weighed on 2025 results, leaving investors watching for stabilization next year.