Deckers Brands’ net sales increase 9.1% in FY26 Q2 but year’s forecast misses expectations

Global footwear, apparel, and accessories business Deckers Brands reported a net sales increase of 9.1% year on year in the second quarter of the 2026 financial year with its brands Hoka and Ugg clocking double-digit growth. However, shares slipped as its 2026 full-fiscal forecast came in under analysts’ predictions.

Hoka’s net sales increased by 11.1% in the quarter ended September 30 to total $634.1 million (compared to $570.9 million a year prior) and Ugg’s net sales grew by 10.1% to $759.6 million, compared to $689.9 million, Deckers Brands announced in a press release. However, other brands’ net sales dropped by 26.5% to $37.2 million, compared to $50.6 million in the second quarter of the 2025 financial year.
 
Deckers Brands’ wholesale net sales were up by 13.4% during the quarter but direct to customer net sales dropped by 0.8% with DTC comparable net sales down by 2.9%. International net sales enjoyed a 29.3% increase over the quarter while domestic (US) net sales decreased by 1.7% and the business’ gross margin rose slightly to 56.2%.

“Hoka and Ugg again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands,” said Deckers Brands’ president and CEO Stefano Caroti in a press release. “Our brands’ ability to connect with consumers through leading innovative products differentiates Deckers in today’s dynamic and competitive marketplace. Combined with our best-in-class operating model and financial profile, I am confident in our ability to achieve our fiscal year 2026 outlook and continue to capture the significant opportunities ahead for Deckers.”
 
The business’ shares slipped in double digits following the announcement of its results as its net sales forecast of $5.35 billion for the full 2026 financial year came in lower than previous analyst estimates of $5.45 billion, Reuters reported. “The shortfall reflects management’s cautious view on US consumer spending amid tariff-driven price hikes,” said Bloomberg Intelligence analyst Abigail Gilmartin.
 
Deckers Brands expects to see Hoka grow by a “low-teens percentage” year on year in the 2026 financial year and Ugg is projected to grow by a “low-to-mid-single-digit percentage” in the same period. The business expects its gross margin to be approximately 56% and its operating margin is projected to be approximately 21.5% this fiscal.