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Hoka and Ugg Parent Deckers Brands Sees Shares Fall After Q2 Sales Miss

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Hoka and Ugg Parent Deckers Brands Sees Shares Fall After Q2 Sales Miss

Shares of Deckers Brands, the parent company of Hoka and Ugg, dropped over 8 percent on Thursday in after-market trading following the company’s mixed performance in the second quarter.

The Goleta, Calif.-based company reported that net sales in the second quarter of fiscal 2027 increased 3.5 percent to $1.48 billion compared to $1.43 billion in the same year-ago period. Net income for the three months ended Sept. 30 rose 16.8 percent to $313.1 million, or $2.31 a diluted share, down from $268.2 million, or $1.82 a diluted share, the prior year.

Net sales this quarter missed analysts’ expectations, which called for net sales in the range of $1.50 billion to $1.52 billion. However, the company did beat the Street’s best bet when it comes to diluted earnings per share (EPS), with analysts expecting EPS to be in the range of $1.76 to $1.83, according to Yahoo Finance.

The earnings beat is most likely due to the tariff refunds the company secured in the second quarter. The company said on Thursday that it received International Emergency Economic Powers Act (IEEPA) tariff net refunds totaling $46.0 million, plus associated interest of $3.0 million, which were recognized as a reduction of cost of sales and an increase to total other income, respectively.

The net benefit to both gross margin and operating margin was approximately 310 basis points. Net of tax, this resulted in an approximate 28 cent benefit to second quarter fiscal year 2027 diluted EPS.


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