Deckers Brands, a globally recognized leader in innovative footwear, apparel, and accessories, has announced a robust financial performance for the second fiscal quarter ended September 30, 2025. This report delves into the company's earnings breakdown, analyzes key metrics, and highlights significant developments within the quarter.
Deckers Outdoor Corp Earnings Summary
For the second quarter of fiscal 2026, Deckers reported a commendable increase in key financial metrics. The company achieved a 9% growth in revenue, reaching $1.43 billion compared to the same period last year. Earnings per share (EPS) also rose by 14%, showcasing the company's efficient management and strategic market positioning.
Deckers Outdoor Corp Results
Below is a table summarizing Deckers' key financial metrics for the second quarter of fiscal 2026 compared to the previous year:
| Metric | Q2 FY2026 | Q2 FY2025 | % Change |
|---|---|---|---|
| Total Revenue (Billion) | $1.431 | $1.311 | +9.1% |
| Gross Margin | 56.2% | 55.9% | +0.3% pts |
| Operating Income | $326.5 Million | $305.1 Million | +7.0% |
| Diluted EPS | $1.82 | $1.59 | +14.5% |
Revenue Breakdown
The company's revenue performance is driven by its two major brands, HOKA and UGG, both of which demonstrated double-digit growth in this quarter. The following table provides a detailed breakdown of revenue by brand and channel:
| Segment | Q2 FY2026 Revenue ($ Million) | Q2 FY2025 Revenue ($ Million) | % Change |
|---|---|---|---|
| HOKA® | $634.1 | $570.9 | +11.1% |
| UGG® | $759.6 | $689.9 | +10.1% |
| Other Brands* | $37.2 | $50.6 | -26.5% |
| Wholesale | $1.036 Billion | $913.7 Million | +13.4% |
| DTC | $394.6 Million | $397.7 Million | -0.8% |
The positive growth in HOKA and UGG brands underscores Deckers' strong product offerings and the ability to meet consumer demand through innovation. The Wholesale channel also stood out with a 13.4% increase in net sales, reinforcing the company's distribution strength.
Key Developments
Key developments during the quarter include:
- International Expansion : Deckers' international net sales soared by 29.3%, driven by strong demand outside the domestic market.
- Operating Efficiency : The company maintained a healthy gross margin of 56.2% and improved its operating income by 7% compared to the prior year.
- Strategic Inventory Management : Inventories increased slightly, reflecting strategic stock levels to meet anticipated demand.
Comments from Company Officers
Stefano Caroti, President and CEO of Deckers, remarked, "HOKA and UGG again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands. Our brands' ability to connect with consumers through leading innovative products differentiates Deckers in today's dynamic and competitive marketplace."
Dividends and Share Repurchases
Deckers continues its commitment to returning value to shareholders through its share repurchase program. During the quarter, Deckers repurchased approximately 2.6 million shares for a total of $282.0 million. The company still has $2.2 billion remaining under its authorized share repurchase program.
Deckers Outdoor Corp Stock Forecast
Based on the company's financial performance, business updates, and market conditions, Deckers' stock is poised for potential growth in the coming months. High Projection : If Deckers successfully capitalizes on its brand strength and international expansion while navigating market uncertainties, the stock price could rise to approximately $1.75 per share. Low Projection : In the event of macroeconomic downturns impacting consumer spending, the stock could trade around the $1.50 mark.
In conclusion, Deckers Brands' strong second-quarter performance and strategic focus on brand development and operational efficiency indicate promising prospects for the fiscal year 2026. With robust fundamentals and an ongoing commitment to innovation, Deckers is well-positioned to capture future growth opportunities while navigating the competitive landscape.
