HOKA, UGG maker Deckers cuts sales outlook as store demand cools
By Simran KaurFashion Writer, Peepals Shakti
Representative image: 4262159 / Pixabay
Deckers Brands, maker of HOKA and UGG, reported 3.5% sales growth to $1.48 billion for July-September 2026 on October 22 but cut its full-year sales outlook; shares fell about 9%.
What Happened
Deckers Brands, the US company that owns the HOKA running-shoe and UGG footwear brands, reported on Thursday, October 22, 2026, that its net sales rose 3.5% to $1.481 billion in the July-September quarter, the second quarter of its 2027 financial year. HOKA sales grew 6.8% and UGG sales 3.5%. But the company lowered its forecast for full-year sales, saying it now expects $5.700 billion to $5.725 billion, and its shares fell about 9% after the results, according to reports.
Key Facts
- Net sales: $1.481 billion for the quarter ended September 30, 2026, up 3.5% (2.8% in constant currency).
- HOKA: sales up 6.8% to $677.2 million, from $634.1 million.
- UGG: sales up 3.5% to $786.4 million, helped by orders from stores ahead of the holiday season.
- Direct-to-consumer sales (its own shops and websites): down 1.8% to $387.5 million; comparable direct sales fell 6.4%.
- Earnings per share: $2.31, up 27%, including a $0.28 one-time benefit from refunds of US tariffs.
- New full-year sales outlook: $5.700 billion to $5.725 billion; HOKA now expected to grow by a high-single-digit percentage and UGG by a low-single-digit percentage.
- Profit outlook: full-year earnings-per-share guidance raised to $7.80 to $7.95.
- Shares: fell about 9% after the company cut its sales forecast and revenue missed analysts' estimates, according to reports.
Why It Matters
HOKA, known for running shoes, and UGG, known for boots and slippers, are widely sold footwear brands around the world. When the company behind them cuts its outlook, it is a sign that even popular brands are finding shoppers more careful with their money.
The most telling number is the fall in direct-to-consumer sales. These are sales through the company's own stores and websites. They fell 1.8%, and on a like-for-like basis 6.4%, even as total sales rose. That means growth came mainly from wholesale orders placed by other retailers stocking up for the holidays, not from shoppers buying directly. If those retailers do not sell through their stock, future orders may slow.
The company also said, according to a summary of its earnings call, that some updated versions of popular HOKA shoe models released in 2026 did not do as well as it had hoped. In fashion and sportswear, a brand's growth often depends on each new version of a best-selling product. A weaker update can slow growth quickly. There was a mixed message on profit, though. While cutting its sales forecast, the company raised its full-year earnings-per-share guidance to $7.80 to $7.95. Part of the quarter's 27% rise in earnings per share came from the one-time tariff refund; without that $0.28 benefit, earnings per share would have been about $2.03. In other words, the company is still making good money on what it sells, but it expects to sell less than it had planned.
| Brand or measure | July-September 2026 | Change from a year earlier |
|---|---|---|
| HOKA | $677.2 million | Up 6.8% |
| UGG | $786.4 million | Up 3.5% |
| Direct-to-consumer | $387.5 million | Down 1.8% |
| Total net sales | $1.481 billion | Up 3.5% |
For people who build careers in fashion and footwear, in India and elsewhere, the results are a reminder of how quickly demand can change. Design that keeps a loyal customer coming back, and stores that sell well, matter as much as a famous name.
Impact
Short-term: Shoppers may see more promotions on HOKA and UGG products if retailers and the company try to clear stock in the holiday season.
Long-term: Deckers will need new products that win over buyers to restore faster growth, especially for HOKA. The results may also make investors more cautious about other footwear and sportswear brands that depend on a few best-sellers.
Who is affected: Deckers' shareholders and staff; shoe retailers that stock HOKA and UGG; factories and suppliers that make its products; and shoppers looking for running shoes and winter footwear.
Key Takeaway
Deckers Brands grew sales 3.5% to $1.48 billion in July-September 2026, with HOKA up 6.8% and UGG up 3.5%, but cut its full-year sales outlook as its own-store sales fell.
Questions and Answers
What did Deckers Brands report for Q2 fiscal 2027?
On October 22, 2026, Deckers reported net sales of $1.481 billion for the quarter ended September 30, up 3.5%, with HOKA sales of $677.2 million (up 6.8%) and UGG sales of $786.4 million (up 3.5%).
Why did Deckers shares fall?
Shares fell about 9% after the company lowered its full-year sales forecast and its quarterly revenue missed analysts' estimates, according to reports.
What is Deckers' new sales forecast?
Deckers now expects full-year net sales of $5.700 billion to $5.725 billion, with HOKA growing by a high-single-digit percentage and UGG by a low-single-digit percentage.
Were Deckers' own-store sales up or down?
Down. Direct-to-consumer sales fell 1.8% to $387.5 million, and comparable direct sales fell 6.4%.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Simran Kaur, Fashion WriterCovers Fashion and more for Peepals Shakti. All stories by Simran Kaur
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Simran Kaur is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
