Eigen RadarEconomics
Archive
Analysis

Deckers raises earnings outlook with tariff refunds as sales growth slows

Deckers raised its annual earnings forecast with help from tariff refunds while cutting its sales outlook. The footwear group increased quarterly revenue by 3.5 per cent, with growth at HOKA and UGG. Direct sales to consumers declined. Net tariff refunds of 46 million dollars supported quarterly margins and earnings.

Economics & Markets··Midday
An unbranded running shoe and shearling-lined boot on a packing bench.

Sales and earnings outlooks move in different directions

Deckers Brands, the footwear company behind HOKA and UGG, cut its annual sales outlook and raised its earnings forecast with help from tariff refunds. Its second-quarter results covered the period ended September 30. The fiscal year ends on March 31, 2027.[1], [2]

The company forecast annual sales of 5,700 million dollars to 5,725 million dollars and earnings per share of 7.80–7.95 dollars. The earnings estimate includes approximately 0.52 dollars per share from tariff refunds and assumes no additional refunds after October 8.[1]

HOKA and UGG grow while direct sales decline

Quarterly sales rose 3.5 per cent to 1,481 million dollars. HOKA sales increased 6.8 per cent to 677.2 million dollars and UGG sales rose 3.5 per cent to 786.4 million dollars. Wholesale revenue grew 5.5 per cent, while direct-to-consumer revenue fell 1.8 per cent. Comparable direct sales declined 6.4 per cent.[1]

Refunds support quarterly margins

Deckers received net tariff refunds of 46 million dollars and associated interest of 3 million dollars. The refunds contributed about 310 basis points to gross and operating margins and approximately 0.28 dollars to after-tax earnings per share. Diluted earnings per share increased from 1.82 dollars to 2.31 dollars.[1]

References

  1. News sourceDeckers BrandsTariff refunds lift Deckers’ quarterly earnings↩1↩2↩3↩4
  2. News sourceThe FINANCIALDeckers cuts its annual sales forecast↩
Central banks and the rate cycleEnergy transition and climate

More analysis from this desk

View all Brief analyses from the Economics & Markets desk →