NEW YORK, July 23, 2026, 17:06 EDT – Deckers Outdoor NYSE:DECK shares moved lower after the company reported a profit decrease, even as earnings per share rose due to share repurchases.
- After-hours indicative shares hovered around $93.40, compared to the previous close of $96.23.
- Net income declined by 6.6%, as the number of diluted shares decreased 7.4%.
- Revenue increased by 5.7%. The company maintained its annual sales outlook and raised its EPS forecast.
After Thursday’s closing bell, shares of Deckers Outdoor Corporation NYSE:DECK hovered close to $93.40. The stock finished regular New York trade at $96.23, declining 6.1%. Regular session trading had ended, but after-hours activity continued.
The decline occurred even though quarterly earnings surpassed consensus by six cents. Net income decreased, but earnings per share increased.
Net income decreased by 6.6%, totaling $130.0 million compared to the previous year. Operating income was down 6.0% at $155.3 million for the same timeframe. Diluted earnings per share rose by one cent to $0.94.
Based on last year’s diluted shares, present earnings translate to roughly $0.87 per share, a penny under the analyst consensus of $0.88. The figure excludes the effect of repurchases.
| Fiscal first-quarter metric | FY2027 | FY2026 | Change |
|---|---|---|---|
| Revenue | $1.020 billion | $964.5 million | +5.7% |
| SG&A expense | $419.9 million | $372.6 million | +12.7% |
| Operating income | $155.3 million | $165.3 million | -6.0% |
| Operating margin | 15.2% | 17.1% | -190 bps |
| Net income | $130.0 million | $139.2 million | -6.6% |
| Diluted shares | 138.6 million | 149.6 million | -7.4% |
| Diluted EPS | $0.94 | $0.93 | +1.1% |
Deckers provided the reported figures in its July 23 filing. Margins and percentage changes are based on these numbers.
Deckers bought back approximately 3.3 million shares in the quarter, spending $338.2 million. The company paid a weighted average price of $103.79 per share. After-hours indicative pricing was about 10% lower than that.
The company’s annual guidance continues to factor in share buybacks. Deckers expects to repurchase shares amounting to about 80% of its anticipated free cash flow for fiscal 2027.
The company increased its full-year EPS forecast by five cents, now expecting $7.35 to $7.50. The firm maintained its projected annual revenue at $5.86 to $5.91 billion, with the sales outlook remaining unchanged.
Core demand continued to grow over the quarter. Revenue increased by 5.7%, in line with the analyst consensus. Gross margin widened by roughly 60 basis points to stand at 56.4%.
Hoka reported a 7.7% increase in sales, reaching $703.5 million in the quarter. Ugg revenue advanced 4.9% to $278.0 million. Sales through direct-to-consumer channels rose 13%, outpacing the 2.2% growth recorded in wholesale.
International sales increased by 8.4%, outpacing the domestic rate by more than double. This expanded the company’s geographic growth footprint.
Chief Executive Stefano Caroti said, “Deckers delivered a solid start to the fiscal year.” He pointed to product innovation and worldwide demand for Hoka and Ugg. Deckers Outdoor Corporation
The stock had declined ahead of the earnings report, dropping 11.7% over five trading days from $109.03 on July 16 to its closing price on Thursday. Losses deepened further in after-hours trading.
Analysts are expected to pay attention to operating leverage in upcoming estimate revisions. SG&A expenses increased by 12.7%, outpacing the 5.7% rise in sales. Friday marks the initial full trading session in cash after the results were released.
Tariffs, softer consumer demand, currency volatility, and supply chain complications are among the risks. These challenges may reduce demand for brands or impact operating margins.
Deckers still has $4.7 billion available for share buybacks and disclosed zero borrowings. The key issue now is if operating profit aligns with earnings per share.
