Shares for Hoka and Ugg parent company Deckers Brands dropped over 8 percent in after-market trading on Thursday after the footwear maker posted yearly guidance below analysts’ expectations.
The Goleta, Calif.-based company reported net sales in the second quarter of fiscal 2026 increased 9.1 percent to $1.43 billion compared to $1.31 billion the same time last year. Net income for the second quarter was $268.15 million, or $1.82 per diluted share, down from $357.95 million, or $2.74 per diluted share, the prior year.
These results beat the company’s own expectations, which called for net sales in Q2 to be in the range of $1.38 billion to $1.42 billion, with diluted earnings per share expected to be in the range of $1.50 to $1.55.
By brand, Ugg led the way with net sales of $759.6 million, a 10.1 percent increase compared to $689.9 million the same time last year. At Hoka, net sales increased 11.1 percent to $634.1 million compared to $570.9 million last Q2.
Deckers’ “Other” brands division – which includes the Teva and Ahnu brands – saw net sales decrease 26.5 percent to $37.2 million compared to $50.6 million. The company noted that the net sales decline in Other brands division includes the impact from the phase-out of the Koolaburra brand standalone operations.
As for wholesale, Deckers said that net sales in the channel increased 13.4 percent to $1.04 billion compared to $913.7 million, while the direct-to-consumer channel saw net sales decline 0.8 percent to $394.6 million compared to $397.7 million the same time last year.
By region, the company noted that net sales domestically declined 1.7 percent to $839.5 million compared to $853.9 million in Q2 2025. However, international net sales in the period increased 29.3 percent to $591.3 million compared to $457.4 million.
Stefano Caroti, president and chief executive officer of Deckers Brands, said in a statement on Thursday that Hoka and Ugg again delivered double-digit growth in the second quarter, “reflecting strong performance and international momentum” for these two brands.
“Our brands’ ability to connect with consumers through leading innovative products differentiates Deckers in today’s dynamic and competitive marketplace,” Caroti said. “Combined with our best-in-class operating model and financial profile, I am confident in our ability to achieve our fiscal year 2026 outlook, and continue to capture the significant opportunities ahead for Deckers.”
Looking ahead, the company has issued yearly guidance for the first time after holding back last quarter due to “evolving global trade policy and related macroeconomic pressures.”
For the full fiscal year 2026, Deckers expects net sales to be approximately $5.35 billion, with diluted earnings per share in the range of $6.30 to $6.39. The company also noted that Hoka is expected to increase by a low-teens percentage versus last year in fiscal 2026, while Ugg is expected to increase by a low-to-mid-single-digit percentage versus last year.
The guidance is lower than analysts’ expectations, which call for net sales in the year to be between $5.39 billion and $5.56 billion.