Deckers’ second quarter results featured a combination of steady top-line growth and margin compression. Management attributed revenue performance to strong consumer demand for both HOKA and UGG brands, with particularly robust growth in the direct-to-consumer (DTC) channel. CEO Stefano Caroti highlighted, “Both HOKA and UGG maintained solid momentum and continued to capture high level of full-price consumer demand,” pointing to successful product launches and disciplined inventory management. However, competitive pressures, an increase in tariffs, and higher operating expenses weighed on profitability for the quarter.
Is now the time to buy DECK? Find out in our full research report (it’s free for active Edge members).
Deckers (DECK) Q2 CY2026 Highlights:
- Revenue: $1.02 billion vs analyst estimates of $1.02 billion (5.7% year-on-year growth, in line)
- EPS (GAAP): $0.94 vs analyst estimates of $0.88 (7.3% beat)
- The company reconfirmed its revenue guidance for the full year of $5.89 billion at the midpoint
- EPS (GAAP) guidance for the full year is $7.43 at the midpoint, missing analyst estimates by 1%
- Operating Margin: 15.2%, down from 17.1% in the same quarter last year
- Locations: 206.5 at quarter end, up from 191 in the same quarter last year
- Constant Currency Revenue rose 4.8% year on year (16.3% in the same quarter last year)
- Same-Store Sales rose 6.8% year on year (-2.2% in the same quarter last year)
- Market Capitalization: $14.1 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Deckers’s Q2 Earnings Call
- Jay Sole (UBS) asked how new HOKA franchises contribute to future growth. CEO Stefano Caroti highlighted ongoing product innovation and segmentation, emphasizing strong early consumer response and confidence in continued momentum.
- Adrienne Yih-Tennant (Barclays) inquired about the competitive landscape and tariff impacts. Caroti pointed to share gains in performance categories, while CFO Steve Fasching detailed the company’s planning for higher tariffs and flexibility regarding potential refunds.
- Laurent Vasilescu (BNP Paribas) questioned the sustainability of DTC growth and order book stability. Fasching reiterated that DTC demand remains strong, and Caroti confirmed there have been no cancellations, with UGG’s diversified product mix helping mitigate weather-related risks.
- Paul Lejuez (Citi) asked about promotional activity in Europe and gross margin sensitivity to tariffs. Caroti noted robust demand and brand strength in Europe, while Fasching clarified the timing and impact of tariffs on inventory sold.
- Samuel Poser (Williams Trading) probed margin benefits from disciplined closeouts and changes in UGG distribution. Fasching explained improved gross margin management, and Caroti described the ongoing strategy to elevate brand positioning and retailer partnerships.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will focus on (1) the pace and consumer response to new product launches across HOKA and UGG, (2) Deckers’ ability to balance premium pricing and clean inventory amid rising tariffs and input costs, and (3) the effectiveness of expanded DTC and wholesale initiatives in international markets. Execution around these priorities will be critical for sustaining growth and protecting margins.
Deckers currently trades at $103.20, up from $96.23 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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