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Deckers (DECK) is under pressure today after reporting its Q2 (Sep) results last night. The footwear company delivered a big EPS beat, while revenue was in line, increasing 9.1% yr/yr to $1.43 bln. It was a bit softer than the 17% growth rate seen in Q1, and the company reinstated annual guidance (from quarterly) with revenue below expectations. FY26 EPS is expected to be $6.30-6.39, while revenue is approximately $5.35 bln.

• HOKA brand revenue increased 11.1% to $634.1 mln, supported by a 13% increase in wholesale, though growth eased from the +19.8% revenue and +30% wholesale increases in Q1.
• UGG brand revenue increased 10.1% to $759.6 mln, driven by a 17% increase in wholesale and offset by a 10% decline in DTC, softer than Q1's +19.8% revenue, +30% wholesale, and -1% DTC.
• Growth continues to be supported by international markets, which surged +29% yr/yr, while domestic sales declined 1.7%, reflecting a more cautious U.S. consumer.
• DTC struggled in Q2, down 0.8%, with comps falling 2.9%, as shoppers favored multi-brand stores and earlier wholesale availability.
• Looking ahead, management expects international and wholesale to remain the key growth drivers, while anticipating a more cautious consumer as the full impact of tariffs and price increases take effect in the U.S.

Briefing.com Analyst Insight

Given the more upbeat Q1 report, we think investors were looking for something similar in Q2. The brands are still growing, but momentum clearly cooled, and the FY26 revenue guidance came in a bit light. Also, with the big EPS beats in Q1 and Q2, the in-line guidance might have been a bit disappointing. With the U.S. consumer under pressure and tariff headwinds set to increase in the back half, sentiment has turned more cautious. That said, Deckers' strong international growth, wholesale performance, and brand loyalty remain positives that should support longer-term confidence.