Deckers Outdoor (DECK) Q2 2027 earnings summary

Executive summary

• Record Q2 net sales were $1.481bn, up 3.5% YoY; HOKA and UGG grew 6.8% and 3.5%, respectively.

• Diluted EPS was $2.31, including a $0.28 tariff-refund benefit; excluding refunds and related interest, EPS was $2.03, up 11.5% YoY.

• FY27 EPS guidance increased to $7.80–$7.95 as revenue guidance took a measured approach, with brand health and margin preservation prioritized.

Financial highlights

• Q2 net sales were $1.481bn versus $1.431bn; constant-currency sales increased 2.8%.

• Gross margin was 60.5% versus 56.2%; tariff refunds added ~310 bps, while full-price selling and product mix drove a 120-bp underlying improvement.

• SG&A was $505.7m versus $477.3m; operating margin was 26.3%, or 23.2% excluding the net IEEPA refund benefit, 40 bps above prior year.

• Net income was $313.1m versus $268.2m; operating income was $389.5m versus $326.5m.

Outlook and guidance

• FY27 net sales are expected at $5.700bn–$5.725bn; HOKA growth is forecast at a high-single-digit rate and UGG at a low-single-digit rate.

• FY27 gross margin is expected at ~58.5%, SG&A at ~35.5% of sales and operating margin at ~23%; excluding refunds received, gross margin is expected at 57% and operating margin slightly above 21.5%.

• FY27 diluted EPS guidance is $7.80–$7.95, assumes $1.0bn of share repurchases and includes an approximately $0.52 net-of-tax refund benefit.

• Outlook includes refunds received through Oct. 8, 2026, and assumes no further refunds; $87.9m of net refunds and $4.7m of related interest had been received.

• Q3 revenue growth is expected in the low single digits and diluted EPS at $3.52–$3.60, including an approximately $0.24 tariff-refund benefit; gross margin is expected to exceed 60%.