Deckers Brands reports Q2 revenue growth and appoints The RealReal CEO to board

US footwear and apparel company Deckers Brands (Deckers) has reported its financial results for the second fiscal quarter ended September 30, 2026, delivering performance above management expectations.

Deckers also announced the appointment of Rati Sahi Levesque to its board of directors, effective December 1, 2026. Levesque currently serves as president, chief executive officer and director of US luxury resale platform The RealReal. Levesque will serve on the audit and risk management committee. In connection with her appointment, board member Lauri Shanahan will retire following more than a decade of service. Additionally, board member Patrick J. Grismer will join the corporate responsibility, sustainability and governance committee.

Deckers president and chief executive officer, Stefano Caroti, stated: “We delivered earnings above our expectations in the second quarter by maintaining disciplined marketplace management and a focus on expense control in a challenging consumer environment.”

Review of Q2 performance

Net sales grew 3.5 percent to 1.48 billion dollars compared to 1.43 billion dollars in the prior-year period. On a constant currency basis, net sales increased 2.8 percent.

The growth was driven by the company’s key brand portfolio. Hoka recorded a 6.8% increase in net sales to 677.20 million dollars compared to 634.10 million dollars. Ugg net sales rose 3.5% to 786.40 million dollars compared to 759.60 million dollars. Other brands experienced a 54.3% decline in net sales to 17 million dollars compared to 37.20 million dollars, reflecting the ongoing phase-out of Koolaburra standalone operations.

Wholesale net sales increased 5.5 percent to 1.09 billion dollars compared to 1.04 billion dollars. Direct-to-consumer (DTC) net sales fell 1.8 percent to 387.50 million dollars compared to 394.60 million dollars, with DTC comparable net sales declining 6.4%.

Geographically, international net sales rose 9 percent to 644.70 million dollars compared to 591.30 million dollars, offsetting a domestic net sales drop of 0.4 percent to 835.80 million dollars.

Gross margin reached 60.5 percent compared to 56.2 percent in the previous year. Operating income rose to 389.50 million dollars compared to 326.50 million dollars, while diluted earnings per share (EPS) increased to 2.31 dollars compared to 1.82 dollars.

The quarterly financial results were aided by International Emergency Economic Powers Act tariff net refunds totaling 46 million dollars, plus associated interest of three million dollars. This provided a net benefit to both gross margin and operating margin of approximately 310 basis points, and a 0.28 dollar benefit to diluted EPS.

Full fiscal year 2027 outlook updated

Caroti added: “As we move through the back half of fiscal 2027, we are taking deliberate actions to strengthen our connection with consumers, sharpen execution, and concentrate resources behind our greatest opportunities. We remain confident in the significant global opportunities ahead for both HOKA and UGG, and our ability to drive sustainable growth and create long-term shareholder value.”

Deckers updated its financial outlook for the full fiscal year ending March 31, 2027. Net consolidated sales are now expected to be between 5.70 billion dollars and 5.73 billion dollars.

Hoka net sales are projected to grow by a high-single-digit percentage year-over-year (YoY), while Ugg is expected to grow by a low-single-digit percentage YoY. Gross margin is forecasted at approximately 58.5 percent, with operating margin anticipated at around 23 percent.

During the second fiscal quarter, Deckers repurchased approximately 3.20 million shares of common stock for 299.30 million dollars. Fiscal year-to-date through September 30, 2026, the group repurchased approximately 6.50 million shares for 637.50 million dollars. The company retains approximately 4.40 billion dollars under its stock repurchase authorization.