Deckers Forecast Miss, Tariffs Spark Shares Plunge

Deckers Brands, the owner of Hoka and UGG, reported fiscal Q2 sales of about $1.43 billion, up roughly 9%, and adjusted EPS of $1.82, beating estimates. Domestic net sales fell about 1.7% while international sales rose roughly 29% and wholesale demand remained steady. The company guided FY2026 sales to roughly $5.35 billion—below the roughly $5.45 billion consensus—and gave EPS guidance of $6.30–$6.39. Management said tariffs will reduce results by about $150 million this year (down from a prior $185 million estimate) and cited a “more cautious” U.S. consumer and ongoing macro uncertainty. The below-consensus top-line outlook and tariff headwinds triggered a sharp market reaction, with shares plunging double digits in after-hours and premarket trading to near two-year lows. Executives stressed continued uncertainty in forecasting consumer behavior even as Hoka and UGG delivered double-digit growth.