Deckers Shares Decline on Cautious Guidance

Core Insights - Deckers Brands experienced an 8% drop in shares after posting yearly guidance below analysts' expectations [1] Financial Performance - Net sales for Q2 of fiscal 2026 increased by 9.1% to $1.43 billion compared to $1.31 billion in the same period last year [2] - Net income for Q2 was $268.15 million, or $1.82 per diluted share, down from $357.95 million, or $2.74 per diluted share, in the prior year [2] - The results exceeded the company's own expectations for net sales, which were projected to be between $1.38 billion and $1.42 billion, and diluted earnings per share were expected to be between $1.50 and $1.55 [3] Brand Performance - Ugg led sales with $759.6 million, a 10.1% increase from $689.9 million in the same period last year [3] - Hoka's net sales increased by 11.1% to $634.1 million compared to $570.9 million in Q2 of the previous year [3] - The "Other" brands division, including Teva and Ahnu, saw a 26.5% decrease in net sales to $37.2 million from $50.6 million, attributed to the phase-out of Koolaburra brand operations [4] Sales Channels - Wholesale net sales increased by 13.4% to $1.04 billion compared to $913.7 million [5] - Direct-to-consumer channel net sales declined by 0.8% to $394.6 million from $397.7 million in the same period last year [5] Regional Performance - Domestic net sales declined by 1.7% to $839.5 million compared to $853.9 million in Q2 2025 [6] - International net sales increased by 29.3% to $591.3 million compared to $457.4 million [6] Management Commentary - The CEO of Deckers Brands highlighted the strong performance and international momentum of Hoka and Ugg, which delivered double-digit growth in Q2 [6] - The company emphasized its ability to connect with consumers through innovative products and expressed confidence in achieving its fiscal year 2026 outlook [7]