Deckers lifts annual profit forecast on strong footwear demand
Deckers Outdoor exceeded first quarter profit expectations and raised its fiscal 2027 earnings outlook as strong demand for Hoka and UGG footwear, coupled with robust direct to consumer sales, supported higher margins and steady revenue growth.
LW Desk
Deckers Outdoor Corporation reported stronger than expected first quarter earnings for fiscal 2027, supported by solid demand for its Hoka and UGG brands and continued growth in its higher margin direct to consumer (DTC) business.
The footwear company posted first-quarter revenue of US $1.02 billion, up 5.7% year on year, broadly meeting market expectations. Quarterly earnings came in at 94 cents per share, surpassing analysts' estimates of 87 cents per share.
The company also raised its full year fiscal 2027 earnings guidance, projecting earnings per share (EPS) between US $7.35 and US $7.50, compared with its earlier forecast of US $7.30 to US$7.45. However, the modest increase in guidance and an unchanged annual sales outlook led to an 8% decline in the company's shares in after-hours trading.
Deckers profitability continued to improve during the quarter, with gross margin expanding to 56.4%, up from 55.8% in the same period last year. The improvement was driven by stronger sales through the company's direct to consumer channels, which typically generate higher margins than wholesale operations.
Direct to consumer net sales increased 8.4% during the quarter, a notable acceleration compared with 0.5% growth in the corresponding period last year. The company has continued to invest in both wholesale and DTC channels while introducing new products that have helped attract premium consumers despite ongoing economic uncertainty.
Performance across Deckers key brands remained positive. Hoka, the company's fast growing performance footwear brand, recorded 7.7% sales growth, while UGG posted a 4.9% increase in quarterly sales.
Deckers has also continued to strengthen its position in the global athletic footwear market, gaining market share as several larger competitors face softer demand for legacy sneaker lines. The latest results reinforce the company's ability to deliver steady growth through brand strength, premium product offerings and a successful direct to consumer strategy.
