Deckers Brands (DECK) · Q2 2027 results and valuation

At 14.7% growth a year (3-year revenue growth), the model's fair value is $280.80 a share — the stock trades 69% below it. Today's price assumes −2.6% growth a year.

1. Key theme

   The company increased its gross margin expectation to approximately 58.5% due to better performance and an approximate $88 million IEPA tariff refund benefit in cost of sales.

   Source quote

   “We are increasing our gross margin expectation to now be approximately 58.5%, reflecting slightly better performance, as well as the approximate $88 million IEPA tariff refund benefit in cost of sales.”

2. Key theme

   Total company revenue is expected to be between $5.7 and $5.725 billion, with HOCA and UGG brands increasing by high single-digit and low single-digit percentages over last year, respectively.

   Source quote

   “Total company revenue is now expected to be in the range of $5.7 to $5.725 billion, with HOCA now increasing by a high single-digit percentage versus last year, and UGG now increasing by a low single-digit percentage.”

3. Guidance

   The company projects an effective tax rate of approximately 23% and expects diluted earnings per share in the range of $7.80 to $7.95.

4. Figure

   Diluted earnings per share were $2.31, which included a $0.28 benefit from IEEPA net tariff-free funds received in the quarter.

   Source quote

   “Diluted earnings per share was $2.31, including a $0.28 benefit from the impact of IEEPA net tariff-free funds received in the quarter.”

5. Figure

   Global revenue increased 7% over last year to $677 million in the second quarter, reflecting the impact of HOCA.

   Source quote

   “Starting with HOCA, global revenue in the second quarter increased 7% versus last year to $677 million.”

4 more

1. Figure

   Gross margins for the second quarter were 60.5%, up 430 basis points from last year's 56.2%.

   Source quote

   “Gross margins for the second quarter was 60.5%, up 430 basis points from last year's 56.2%.”

2. Figure

   Diluted earnings per share rose to $2.31 for the quarter, which is 49 cents above last year's $1.82, representing EPS growth of 27%.

   Source quote

   “These results culminated in diluted earnings per share of $2.31 for the quarter, which is 49 cents above last year's $1.82 diluted earnings per share, representing EPS growth of 27%.”

3. Key theme

   The company will prioritize margin preservation and long-term value over chasing incremental near-term revenue to avoid diluting its brands.

   Source quote

   “We will continue to prioritize margin preservation and long-term value over chasing potential incremental near-term revenue that could dilute our brands.”

4. Figure

   Wholesale grew by 7% to $641 million, which drove the company's growth during the second quarter of 2027.

   Source quote

   “Growth was driven by wholesale, which increased 7% to $641 million.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Our high levels of profitability and strong balance sheet provide the opportunity to make targeted investments that we believe can support future market share gains and drive sustainable long-term growth.”

“We will remain laser-focused on protecting our premium brand positioning, driving growth with a high degree of full-price business, managing inventory with discipline, building clear channel and franchise segmentation, while...”

“First, we're building on the success of archived models, such as Mafatis P2, with modernized applications, taking insights from early success we're seeing in certain markets to influence opportunities across...”

Q2 2027 figures are not available yet: the company files its quarterly report (10-Q) a few weeks after the call. This page compares what management said; the figures are added when the report is filed.