Deckers Outdoor (DECK) Stock Crashes as Weak Full-Year Sales Forecast Spooks Investors

Footwear giant stumbles as sales projections disappoint

Deckers Outdoor just delivered a gut punch to shareholders with its latest earnings report. The company behind UGG and HOKA brands saw its stock plummet after revealing weaker-than-expected full-year sales guidance.

Market Reaction: Instant Sell-off

Traders wasted no time dumping positions as the grim forecast hit the wires. The downward revision suggests even popular brands aren't immune to shifting consumer spending patterns and economic headwinds.

Another reminder that in traditional markets, 'guidance' is just corporate-speak for 'prepare for volatility'—meanwhile, crypto markets trade 24/7 with full transparency.

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Deckers’ Outlook Overshadows Better-Than-Expected Q2 Earnings

Deckers reported a 9.1% year-over-year growth in its Q2 FY26 net sales to $1.43 billion, modestly surpassing the Street’s estimate of $1.42 billion. The top-line growth was driven by strength in its HOKA and UGG brands in international markets. In fact, international sales ROSE 29.3% in the quarter, while domestic sales declined 1.7%. Coming to channel-wise performance, wholesale net sales grew 13.4%, partially offset by a 0.8% decline in the DTC (direct-to-consumer) net sales.

Meanwhile, Deckers reported a 14.5% year-over-year growth in its Q2 FY26 earnings per share (EPS) to $1.82, easily beating the consensus estimate of $1.58.

Looking ahead, management stated that U.S. consumers are a “little bit more cautious” and pulling back on discretionary purchases when they see price increases. Moreover, tariffs are expected to further hurt demand for DECK’s Hoka sneakers and UGG boots. While Deckers sources less than 5% of its products from China, it is significantly dependent on manufacturing in Vietnam, raising concerns about the impact of tariffs.

Overall, Deckers expects its Fiscal 2026 net sales to be about $5.35 billion. This estimate lags the Street’s top-line expectation of $5.46 billion.

Is Deck Stock a Good Buy?

Currently, Wall Street has a Moderate Buy consensus rating on Deckers Outdoor stock based on eight Buys, nine Holds, and two Sell recommendations. The average DECK stock price target of $124.47 indicates 21.4% upside potential.

These ratings/price targets are expected to be revised as investors react to Q2 FY26 results and outlook.