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Deckers Tops Q2 and Issues Cautious FY26 Outlook on Tariff Pressure as Shares Tumble

Management cited tariff-driven price increases as a key risk to U.S. demand, shaping a cautious full-year outlook.

Overview

  • Deckers guided to about $5.35 billion in FY26 revenue and $6.30–$6.39 in EPS, below sales expectations, and now forecasts Hoka to grow low‑teens and Ugg low‑ to mid‑single digits.
  • Executives estimated roughly $150 million in tariff costs for the year and said about half should be offset through price increases and cost‑sharing with factory partners.
  • Shares fell roughly 12% Friday after the guidance, and several analysts cut price targets, including Needham, Telsey, Baird, Raymond James, Evercore ISI and Stifel.
  • Q2 beat expectations with $1.43 billion in revenue and $1.82 EPS as Hoka and Ugg each grew double digits, while DTC sales declined 0.8% and Ugg’s DTC fell about 10% per Jefferies.
  • International sales rose 29.3% to $591.3 million as U.S. revenue slipped 1.7%, underscoring stronger growth overseas than in the domestic market.