Oct 22, 2026 earnings call — HOKA and UGG growth, margin preservation
Deckers raised full-year EPS outlook to $7.80-$7.95 and set revenue guidance of $5.7 billion-$5.725 billion.
Revenue $1.5B (est $1.5B) · EPS $2.03 (est $1.79) · Next-quarter revenue outlook $5.7B–$5.7B
Key quotes
"We will continue to prioritize margin preservation and long-term value over chasing potential incremental near-term revenue that could dilute our brands."
"Bondi 10 launches in January, introducing an upgraded dual-density supercritical foam midsole with streamlined design built for performance runners looking for premium cushioning and comfort."
"Building on the encouraging response to key styles, our teams are hyper-focused around a key action plan to deliver the UGG brand's largest quarter in its nearly 50-year history."
Analyst Q&A 6
long-term brand growth outlook
Q (Jay Sole · UBS): Analyst asked if HOKA and UGG can return to the long-term growth rates given in May (HOKA low double digits to fiscal 2030; UGG mid-single digits) and how management will achieve that. He also asked what drove gross margin upside and when the market will stop heavy promotions.
A: Management said near-term challenges do not change their belief in the brands. They will manage the next quarters with discipline, avoid racing to the bottom on promotions, and keep investing to drive long-term growth. They also said the recent gross margin improvement came from better full-price selling and product mix, and they expect market clean-up by summer/fall 2027 and with Bondi 10 in January.
"The near-term challenges do not change my belief in our brands and their potential for growth." — Stefano Caroti (CEO)
promotional environment and UGG sell-in
Q (Adrienne Yih · Barclays): Analyst asked if athletic footwear broadly is promotional and therefore competing with promotional lifestyle products. She also asked if UGG is holding back sell-in because of promotion and whether the order book is building into spring/summer, plus color on sales mix.
A: Management said consumers are buying closer to need and UGG's 360 strategy is working across categories and seasons, with growth driven by sneakers, shoes, flats, clogs and apparel. They said they allocate key styles to keep scarcity and full-price selling; some new UGG products are standouts but sales are slower than desired. On the broader market, they said performance promotions are spilling into lifestyle, creating a promotional cloud they want to avoid.
"Buy now, wear now is real, and consumers are purchasing closer to need." — Stefano Caroti (CEO)
channel mix and Europe shift
Q (Laurent Vasilescu · BNP Paribas): Analyst asked how channels should be thought of now that guidance was revised (HOKA DTC vs wholesale; UGG balance) and whether the $22 million Europe shift is EVOR or lost sales. He also asked if Q3 gross margin ex-IEEPA should be up or down.
A: Management said the DTC-outpace-wholesale view still holds internationally but in the U.S. wholesale will now outpace DTC given U.S. promotional pressure. The $22 million Europe amount is not fully shifting into Q3; some will move later and some may be canceled. For Q3 gross margin they said the IEEPA tariff refund will drive net improvement, partially offset by higher freight and slightly more promotion.
"The way we've modeled it is not all of it carries through into the back half of the year." — Steve Fasching (CFO)
Q3 gross margin without IEEPA; Bondi markdowns
Q (Sam Poser · Williams Trading): Analyst pressed for Q3 gross margin guidance excluding the IEEPA refund and asked where gross margin guidance would be without that benefit. He also asked when Bondi 9 markdowns will start so Bondi 10 launches clean.
A: Management said year-over-year gross margin is up driven by the IEEPA refund, partly offset by higher freight and slightly more promotion. They said last year's Q3 gross margin was 59.8% and they are implying just north of 60% in the current quarter, with a bit more than 200 basis points IEEPA benefit offset by about 150 basis points of freight and promo. On Bondi 9, they said it is already pretty clean and that markdown cadence starts around Cyber; Stefano will confirm timing.
"Last year, Q3, we were at 59.8% on the gross margin, and what we are implying is just north of 60 in the current quarter." — Steve Fasching (CFO)
HOKA wholesale distribution and product updates
Q (Jonathan Komp · Baird): Analyst asked if HOKA is losing wholesale sales to more promotional brands and how much runway exists from new retail doors to sustain wholesale growth. He also asked if product changeovers will be materially changed after some launches underperformed.
A: Management said HOKA has much less distribution than many peers, so there is ample room to expand thoughtfully in U.S. and Europe starting in spring and into fall. They said they continue to gain share above $120 and lead performance running at a premium, while competition is greater below $120. On product, they acknowledged some models didn't go as planned (Transport, Kawana, Solimar) but many others performed well and they are confident in the stronger 2027 updates and supporting lineup.
"We're still in much less distribution than many of our peers in sporting goods, athletic specialty especially." — Stefano Caroti (CEO)
UGG holiday sell-through and HOKA multi-year plan
Q (Peter McGoldrick · Stifel): Analyst asked what retail sell-through and replenishment assumptions are embedded in the low single-digit growth outlook for the December quarter and how those compare to current trends. He also asked how the current market affects the multi-year opportunity for HOKA in specialty and sporting goods.
A: Management said consumers are buying closer to wearing occasions and sales events are driving more sales; early UGG season reaction is strong but they are not assuming the same high level of reorders as last year. They said UGG newness and heritage styles are performing well. On HOKA, they said the strategy is unchanged: slow, selective expansion where it makes sense and use the differentiated offer to grow distribution.
"We aren't necessarily making the same assumptions around reorders that we had last year, because recall that last year was a very strong season." — Steve Fasching (CFO)