Deckers Stock Slides 8% After Hours: HOKA and UGG Growth Slows, Sales Outlook Cut

Deckers Outdoor (NYSE: DECK) stock fell about 8% in after-hours trading on Thursday, October 22, 2026, after the company behind HOKA and UGG missed quarterly revenue estimates and cut its full-year sales outlook — even though earnings per share beat expectations by a wide margin.

What happened with Deckers stock?

Deckers reported fiscal second-quarter results for the quarter ended September 30, 2026, after the market closed on October 22. Sales rose 3.5% to $1.481 billion, missing analysts' estimate of about $1.51 billion. Shares fell 8.3% to $78.22 in after-hours trading, according to reporting cited by The Wall Street Journal, with other market coverage putting the after-hours drop at as much as 8.5%. The slide also pulled shares of Nike, Birkenstock and On Holdings lower in sympathy.

Profit told a different story. Diluted earnings per share rose to $2.31 from $1.82 a year earlier, beating the $1.79 consensus by 52 cents. Net income was $313.1 million and operating income rose to $389.5 million from $326.5 million.

Why is Deckers stock falling if earnings beat?

The market focused on the outlook, not the profit beat. Deckers cut its fiscal 2027 sales forecast to $5.700 billion to $5.725 billion, down from the $5.86 billion to $5.91 billion range it maintained in July, and below the roughly $5.88 billion analysts expected. Coverage described the quarter as the company's first revenue miss in more than 20 quarters.

Growth at both core brands slowed. HOKA revenue increased 6.8% to $677.2 million, down from 7.7% growth in the first quarter and 15.9% growth for the full prior fiscal year. UGG revenue increased 3.5% to $786.4 million, down from 4.9% in the first quarter and 8.2% last year. Direct-to-consumer sales declined 1.8%, while wholesale revenue rose 5.5% — a split that signals softer demand in Deckers' own stores and website heading into the holiday season.

How did tariff refunds affect Deckers' earnings?

Tariff refunds were a major part of the profit beat. The $2.31 quarterly EPS included about a 28-cent benefit from tariff refunds. Gross margin expanded to 60.5%, compared with 56.2% in the prior-year quarter.

Deckers also raised its full-year diluted EPS outlook to $7.80 to $7.95 a share, including about 52 cents from tariff refunds received through October 8. In July, by contrast, the company had forecast $7.35 to $7.50 and that outlook excluded tariff refunds. In other words, the raised profit guidance leans heavily on refunds, while the underlying sales outlook was lowered.

Chief Executive Stefano Caroti pointed to expense control in a challenging consumer environment. The company also returned cash to shareholders, repurchasing approximately 3.2 million shares for $299.3 million during the quarter, and held cash and cash equivalents of about $1.21 billion.

Why it's blowing up

Deckers had been one of footwear's most reliable growth stories, coming off a record fiscal 2026 in which annual revenue rose 9.8% to $5.472 billion and HOKA grew 15.9%. A sales miss, a guidance cut and single-digit HOKA growth arriving together — just weeks before the critical UGG holiday quarter — is exactly the combination that makes investors re-price a premium footwear name quickly. That is why the after-hours move was swift and why rival footwear stocks moved with it.

What's next for Deckers?

Management gave an early look at the third quarter on its earnings call: total revenue growth is expected in the low single digits, with UGG growing low single digits and HOKA delivering low to mid single digits. Third-quarter diluted EPS is expected at $3.52 to $3.60, including about a 24-cent tariff refund benefit, compared with a $3.70 consensus. The holiday quarter will therefore be the real test — whether UGG demand and HOKA momentum recover, and whether direct-to-consumer sales turn back to growth in the U.S. market, where the company said pressure is concentrated.

This report describes what happened and why markets reacted. It is not financial advice, and it does not recommend buying, selling or holding any security.

Key facts

• Fiscal Q2 sales: $1.481 billion, up 3.5%, missing the ~$1.51 billion estimate
• Diluted EPS: $2.31, up from $1.82, beating the $1.79 consensus; includes ~$0.28 in tariff refunds
• HOKA: $677.2 million, up 6.8%; UGG: $786.4 million, up 3.5%
• Full-year sales outlook cut to $5.700–$5.725 billion from $5.86–$5.91 billion
• Full-year EPS outlook raised to $7.80–$7.95, including ~$0.52 in tariff refunds
• After-hours move: shares down about 8.3% to $78.22

Sources

• FinChannel — Deckers cuts sales outlook as HOKA, UGG growth slows
• Quiver Quantitative — Deckers Q2 revenue $1.48B, EPS $2.31
• Seeking Alpha — Deckers GAAP EPS beats by $0.52, revenue misses by $30M
• TradingView / Seeking Alpha — Deckers shares slide on sales miss and lowered outlook
• TipRanks / The Fly — Deckers sees Q3 EPS $3.52–$3.60 vs $3.70 consensus

FAQ

Why did Deckers stock fall after earnings?

Deckers missed quarterly revenue estimates and cut its full-year sales outlook to $5.700–$5.725 billion, which outweighed a large earnings-per-share beat in after-hours trading.

How did HOKA and UGG perform in the quarter?

HOKA sales rose 6.8% to $677.2 million and UGG sales rose 3.5% to $786.4 million, both slower than in the prior quarter and the prior fiscal year.

Did Deckers raise or cut guidance?

Both: it cut its sales guidance but raised its EPS guidance to $7.80–$7.95, with the profit increase including about 52 cents from tariff refunds.

When is Deckers' next test?

The fiscal third quarter covering the holidays, where management expects low-single-digit revenue growth and EPS of $3.52 to $3.60, below the $3.70 consensus cited in coverage.