Deckers Outdoor (DECK) Stock Falls After Earnings Beat as Full-Year Profit Guidance Disappoints

TLDR

• Deckers posted record Q1 fiscal 2027 revenue of $1.02 billion, up 5.7% year over year, with EPS of $0.94 beating estimates by $0.06.
• HOKA led growth with revenue up 8% to $704 million, driven by direct-to-consumer demand and new styles like the Clifton Pro.
• UGG revenue rose 5% to $278 million, with men’s business and the “365” year-round strategy gaining traction.
• Gross margin improved to 56.4% despite tariffs reducing margins by about 150 basis points.
• Full-year EPS guidance of $7.35–$7.50 came in slightly below Wall Street’s estimate of $7.49, sending the stock lower in after-hours trading.

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Deckers Outdoor reported its first-ever quarterly revenue above $1 billion, but the stock slipped in after-hours trading after full-year profit guidance missed Wall Street’s expectations by a hair.

$DECK (Deckers Outdoor) #earnings are out: pic.twitter.com/yCIUaqtS5v

— The Earnings Correspondent (@earnings_guy) July 23, 2026

DECK dropped after the company projected full-year diluted EPS of $7.35 to $7.50, just short of the analyst consensus of $7.49. That gap was enough to unsettle investors despite the headline beat.

For Q1 fiscal 2027, total revenue came in at $1.02 billion, up 5.7% year over year. EPS of $0.94 topped expectations by $0.06. Direct-to-consumer revenue jumped 13%, with HOKA DTC up 17% and UGG DTC up 6%.

Deckers Outdoor Corporation, DECK

HOKA generated $704 million in revenue, up 8%. Growth was broad-based, covering established styles like Clifton and Bondi and newer models including Speedgoat 7, Mach 7 and Mafate Speed 2.

The Clifton Pro, launched just two weeks before the earnings call, had already prompted wholesale reorders. Management framed it as part of a wider effort to build clearer product architecture within HOKA, splitting into “Glide” cushioning and “Fly” speed-focused lines.

HOKA wholesale revenue rose 3% globally. Management noted the modest wholesale gain reflected international shipment timing differences versus unusually early shipments in the prior year, not a shift in demand.

UGG Pushing Beyond Cold Weather

UGG brought in $278 million, up 5%, with both DTC and wholesale each growing at similar rates. International growth was led by Asia.

The men’s business was the biggest contributor to UGG’s incremental revenue in the quarter. Caroti said men’s currently sits at about 15% of UGG revenue, with a target of 20% or more. Products like the Ottosee clog and all-gender styles like Tasman and Lowmel drove that growth.

UGG’s push to become a year-round brand continued, with sandals, sneakers and mules playing a bigger role alongside its core cold-weather lineup.

Margins Hold Up Despite Tariff Hit

Gross margin improved to 56.4%, up 60 basis points from 55.8% a year ago. The gain was driven by favorable channel and product mix and strong full-price selling. Tariffs knocked about 150 basis points off gross margin in the quarter.

SG&A rose 13% to $420 million, reflecting hiring, marketing and HOKA store expansion costs. Deckers ended the quarter with $1.6 billion in cash, inventory down 5% to $808 million and no debt.

The company bought back approximately $338 million of stock during the quarter at an average price of $103.79. About $4.7 billion remains under its repurchase authorization.

Deckers raised its full-year gross margin outlook to slightly above 56.5% and lifted operating margin guidance to slightly above 21.5%. Revenue guidance was held at $5.86 billion to $5.91 billion.

For Q2, Deckers expects revenue to rise about 5%, with HOKA in the high-single digits and UGG in the mid-single digits. Second-quarter EPS is guided to $1.73–$1.78.

Management said growth is expected to pick up in the second half, driven mainly by HOKA’s international wholesale and distributor business.