Why Deckers Outdoor Stock Crashed Today

Core Insights - Deckers Outdoor (NYSE: DECK) stock fell 12.6% despite exceeding earnings expectations, reporting $1.82 per share against an analyst forecast of $1.58 [1][3] - Revenue for Q2 2026 grew by 9% year over year, with earnings increasing by 14%, driven by strong performance from HOKA and UGG brands [3] - Management's guidance for gross margins and SGA expenses disappointed investors, leading to concerns about future earnings growth [4][5] Financial Performance - Deckers reported Q2 2026 revenue of $1.4 billion, with a gross margin of 56.2%, up 30 basis points from the previous year [3] - Selling, general, and administrative expenses rose by 11%, outpacing sales growth, which may impact future profitability [3][4] - The company projected earnings for the year to be between $6.30 and $6.39 per share, which represents minimal growth compared to last year's $6.33 [5][6] Market Reaction - Despite beating earnings expectations, the lack of significant growth in earnings guidance led to a sell-off in Deckers stock [5][6] - Investors were looking for more aggressive growth projections, especially given the stock's valuation at 14 times trailing earnings [5]