Deckers shares slide as sales miss and lower revenue outlook offset profit beat

what happened

According to Seeking Alpha, Deckers Outdoor shares dropped as much as 8.5% in after-hours trading. The company reported record revenue and a 27% rise in profit, but quarterly sales fell short of expectations for the first time in more than 20 quarters.

Adjusted earnings per share were $2.03 against $1.79 expected, excluding a $0.28 boost from IEEPA tariff refunds. Gross margin of 60.5% was inflated by $46.0 million of refunds and $3.0 million of related interest. HOKA and UGG remained the main sales drivers, while other brands such as Teva and Koolaburra declined significantly.

For fiscal 2027, Deckers now expects EPS of $7.80 to $7.95, up from $7.35 to $7.50. However, net sales are now forecast between $5.7 billion and $5.725 billion, down from $5.86 billion to $5.91 billion and below the $5.88 billion consensus.

why it matters

The drop in Deckers stock also pulled down Nike, Birkenstock and On Holdings, showing how weaker demand signals in premium athletic footwear can spread across the sector. Investors are weighing whether the revenue slowdown is durable in a challenging consumer environment, not just the one-time tariff refunds.

market impact

Athletic footwear stocks: Deckers' weaker revenue outlook pressures Nike, Birkenstock and On Holdings

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