Deckers Q2 FY2027: EPS beats at $2.31, sales guide cut to $5.71 billion
There is a real beat and a real downgrade here, and they point in different directions. Deckers earned $2.31 per diluted share against a $1.8296 consensus, but $0.28 of that came from one-time IEEPA tariff refunds, while the full-year sales outlook was trimmed to a $5.7125 billion midpoint from $5.885 billion. The story now rests on HOKA and UGG growing into a lower-margin year.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $2.31 beat the $1.8296 consensus and rose 27% from $1.82. But $0.28 of it came from $46.0 million of IEEPA tariff refunds booked as a reduction of cost of sales plus $3.0 million of interest, worth roughly 310 basis points of margin. Back that out and EPS was closer to $2.03 — still ahead of consensus, but a much thinner beat.
Revenue rose 3.5% to $1.481 billion, a record, or 2.8% in constant currency. HOKA did the heavy lifting at +6.8% to $677.2 million and UGG added 3.5% to $786.4 million, while other brands fell 54.3% to $17.0 million on the Koolaburra phase-out. The mix underneath is uneven: wholesale rose 5.5%, DTC fell 1.8% with comparable sales down 6.4%, and international +9.0% offset a 0.4% domestic decline.
Full-year sales are now $5.700–$5.725 billion, below the $5.885 billion guided previously, with gross margin at about 58.5% and operating margin about 23%. EPS guidance moved the other way, to $7.80–$7.95, but only because about $0.52 of tariff refunds are baked in. The revenue number is the honest signal; the EPS number is the flattered one.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.