Deckers Outdoor Corp (NYSE:DECK) shares fell more than 14% in early trade on Friday after the HOKA and UGG maker reported strong fiscal second quarter earnings but set full-year guidance below analysts' expectations.
For the quarter ended September 30, 2025, Deckers posted revenue of $1.43 billion, up 9.1% year-over-year and slightly above Wall Street’s estimate of roughly $1.42 billion.
Earnings per share came in at $1.82, exceeding the consensus $1.58, while operating margin remained stable at 22.8%.
Brand-level performance was led by HOKA, whose sales rose 11.1% to $634.1 million, and UGG, which increased 10.1% to $759.6 million.
International sales showed a notable 29.3% increase to $591.3 million, offsetting a slight 1.7% decline in domestic sales.
Despite the strong quarterly performance, Deckers set its full-year revenue midpoint at $5.35 billion, approximately 2% below analysts’ expectations.
The company expects HOKA sales to rise in the low-teens percentage range and UGG sales to grow in the low-to-mid-single-digit range.
Gross margin is projected at about 56%, with operating margin near 21.5% and diluted EPS forecasted between $6.30 and $6.39.
“HOKA and UGG again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands,” Deckers CEO Stefano Caroti said in a statement.
“Combined with our best-in-class operating model and financial profile, I am confident in our ability to achieve our fiscal year 2026 outlook, and continue to capture the significant opportunities ahead for Deckers."