The Ugg and Hoka parent reports second quarter earnings on Thursday, and some on Wall Street are raising concerns.
Will Deckers Brands‘ core Hoka and Ugg lines deliver revenue growth that will help it deliver second quarter earnings results that beat Wall Street’s earnings expectations? Analysts aren’t so sure.
Revenue growth at Hoka and Ugg slightly missed market expectations in the first quarter report, but still enough to help the Goleta, Calif.-based company beat expectations and allowed Deckers to keep its yearly guidance, as well as raise diluted earnings per share (EPS) guidance for the year to the range of $7.35 to $7.50. That range is above the previous forecasts of between $7.30 and $7.45.
Deckers is expected to at least post in-line second quarter EPS and reiterate its fiscal year 2027 range of $7.35 to $7.50.
Sam Poser at Williams Trading said he expects “few surprises” when second quarter results are released Thursday. He noted that fiscal year ’27 EPS guidance could be raised due in part to increased share buybacks. For the year, Hoka’s revenue is expected to increase low-double-digits and Ugg’s to rise mid-single digits.
The Williams Trading analyst said it is too early in the season to judge the Ugg business for the year. “Over 80 percent of Ugg’s annual DTC revenue, which reflects consumer demand, occurs in the back half of the fiscal year,” mostly from late November through mid-February,” he noted. 8 percent.
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