Q2 2026 Deckers Outdoor Corp Earnings Call Transcript
Key Points
- Deckers Outdoor Corp (DECK) reported a 9% revenue growth and a 14% increase in diluted earnings per share for the second quarter, surpassing expectations.
- HOKA brand revenue increased by 15% in the first half, driven by strong performance in international markets and successful product updates.
- UGG brand revenue rose by 12% in the first half, with significant growth in international regions and strong wholesale demand.
- The company maintained a strong balance sheet with $1.4 billion in cash and equivalents and no outstanding borrowings.
- Deckers Outdoor Corp (DECK) repurchased approximately $282 million worth of shares, demonstrating confidence in its financial position.
- The US consumer market is under pressure, with concerns about the impact of tariffs and price increases affecting consumer behavior.
- UGG's direct-to-consumer (DTC) sales declined by 10% in the second quarter, attributed to increased wholesale allocations and macroeconomic challenges.
- Gross margin pressure is anticipated in the second half due to tariffs, with an expected unmitigated impact of approximately $150 million for fiscal year 2026.
- The company anticipates a more cautious consumer environment in the US, impacting revenue growth projections for HOKA and UGG.
- Deckers Outdoor Corp (DECK) expects continued tariff headwinds into fiscal year 2027, affecting long-term margin structure.
Good afternoon. Thank you for standing by. Welcome to the Deckers Brands' second-quarter fiscal 2026 earnings conference call.
(Operator Instructions) I would like to remind everyone that this conference call is being recorded.
I'll now turn the conference call over to Ms. Erinn Kohler, VP, Investor Relations & Corporate Planning. Please go ahead, ma'am.
Hello. Thank you, everyone, for joining us today.
On the call is Stefano Caroti, President and Chief Executive Officer; and Steve Fasching, Chief Financial Officer.
Before we begin, I would like to remind everyone of the company's Safe Harbor policy. Please note that certain statements made on this call are forward-looking statements within the meaning of the federal securities laws, which are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the Safe Harbor from liability established by the Private Securities
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