Particle.news
Download on the App Store

Deckers Stock Slides After Fiscal 2026 Outlook Cites Tariff Hit Despite Q2 Beat

Management warns tariffs totaling about $150 million this year could curb U.S. demand.

Overview

  • Deckers topped fiscal Q2 estimates with revenue of $1.43 billion and earnings of $1.82 per share, driven by double‑digit growth at UGG and HOKA.
  • The company guided full‑year sales to about $5.35 billion with EPS of $6.30 to $6.39, below Street revenue expectations and with slower growth projected for HOKA and UGG.
  • Executives pegged tariff costs near $150 million for the year and said roughly half should be offset through price increases and cost‑sharing with factories, noting new U.S. duties on Vietnam‑linked imports.
  • Shares fell roughly 11% to 14% on Friday on the softer outlook, leaving the stock down more than 50% year to date.
  • Wholesale sales rose as direct‑to‑consumer revenue slipped and U.S. sales declined 1.7% while international grew 29%, prompting broad analyst price‑target cuts from firms including Needham, Telsey, Baird, Evercore ISI and Stifel.