Deckers Outdoor Corporation (NYSE:DECK) will report second-quarter earnings on Oct. 23, after the market close.
All eyes are on Deckers as Hoka momentum collides with tariff turbulence in Thursday’s earnings reveal.
Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on the footwear stock, with a price forecast of $120.
Telsey said Deckers carried its strong fiscal 2025 momentum into the early part of fiscal 2026.
She noted that Hoka and Ugg delivered high-teens sales growth on top of last year’s double-digit gains.
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Results accelerated sequentially from the prior quarter, signaling healthy brand traction, she added.
Telsey previewed Deckers’ fiscal second-quarter report due next week and kept her EPS estimate at $1.56, down from $1.59 a year ago.
She expects revenue to rise 8.3% to $1.42 billion.
Her mix assumes Hoka up 10.4%, Ugg up 7.1% and Other (primarily Teva) flat.
She models 190 basis points of gross margin pressure to 54.0%—driven by tariffs, higher promotions and freight.
Earlier, margins benefited from favorable mix and foreign exchange, and SG&A benefited from timing and one-time items. Telsey said those factors contributed to the company’s earnings beat last quarter.
Looking ahead, management again withheld a full-year outlook, favoring quarterly guidance for near-term clarity.
Second-quarter guidance was aligned with expectations, although it underscored a still-challenging macro backdrop, she said.
Deckers projected higher tariff pressure on Vietnam-sourced goods, totaling $185 million in fiscal 2026. That was up from $150 million previously, as mitigation efforts continued, she said.
The company still expects to offset approximately $75 million, primarily through pricing adjustments.
Price Action: DECK shares sre trading higher by 0.11% to $99.17 at last check Friday.
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