Deckers Outdoor Corp Reports Strong Q2 Earnings Amid Weak Full‑Year Outlook

Deckers Outdoor Corporation (NYSE: DECK) released its second‑quarter fiscal 2026 earnings on October 23, 2025. The company posted revenue of $1.34 billion, a 9 % increase from the same period last year. Earnings per share rose to $1.82, up 14 % from $1.59 in Q2 2025. Net income for the quarter reached $268.15 million, compared with $242.32 million in the prior year.

Despite the positive quarterly results, Deckers’ full‑year 2026 outlook was downgraded. The company forecast annual sales that fall short of market estimates, citing weaker U.S. demand for its Hoka sneakers and UGG boots. The weaker outlook has triggered a sharp decline in the share price, with the stock dropping 10.8 % in Friday’s pre‑market trading and reaching a new 52‑week low of $86.83 on October 26, 2025.

Analyst Reactions

  • Goldman Sachs lowered its price target for DECK from $92.00 to $81.00 and issued a sell rating. The downgrade contributed to the recent 12‑month low.
  • Wells Fargo set a higher price target of $95.00 after the earnings announcement.
  • Telsey Advisory reduced its target to $105 from $120 while maintaining a market‑perform rating, citing concerns over direct‑to‑consumer sales and tariff pressures.

Key Highlights from the Earnings Call

  • Revenue Growth: 9 % increase driven by strong sales in both UGG and Hoka brands.
  • Profitability: EPS increased by 14 %, reflecting cost efficiencies and higher gross margins.
  • Tariff Impact: Company noted ongoing tariff pressures but emphasized its ability to manage costs.
  • Direct‑to‑Consumer: Decline in direct‑to‑consumer sales marked the second drop in five and a half years, raising questions about the sustainability of that channel.

Market Context

  • Deckers’ market capitalization stands at $12.9 billion.
  • The stock’s price‑earnings ratio is 15.19.
  • The share price has fallen from a 52‑week high of $223.98 on January 29, 2025, to its current low of $86.83 on October 23, 2025.

Summary

Deckers Outdoor Corp delivered better‑than‑expected quarterly earnings but faced a muted full‑year forecast. Analyst downgrades and concerns over direct‑to‑consumer sales and tariff impacts have pressured the stock, resulting in a significant decline in share price. Investors will likely monitor the company’s ability to translate strong quarterly performance into a more optimistic long‑term outlook.