Deckers Stock Slides on Weak Full-Year Outlook and Decelerating Growth

Shares of Deckers Outdoor Corp. (DECK) fell significantly on Friday after the footwear company's full-year financial outlook disappointed investors, raising concerns about slowing growth and margin pressures despite reporting record quarterly revenue.

Guidance Overshadows Q1 Results

For its fiscal first-quarter 2027, Deckers reported mixed results. While revenue hit $1.02 billion for the first time in a single quarter, matching estimates, the company's guidance for the full fiscal year fell short of Wall Street's expectations.

Management provided the following outlook for fiscal year 2027:

• Earnings per Share (EPS): A range of $7.35 to $7.50, with the high end merely matching the analyst consensus of $7.50.
• Revenue: A range of $5.86 billion to $5.91 billion, which was at the low end of market expectations.

Underlying Concerns Emerge

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Investors looked past the headline quarterly EPS beat of $0.94 versus a $0.87 consensus, as underlying details pointed to weakening fundamentals. The company's net income actually declined 6.6% year-over-year to $130 million, indicating the EPS beat was primarily achieved through a reduced share count from stock buybacks rather than organic profit growth.

Furthermore, growth at its key brands showed signs of deceleration. HOKA net sales increased 7.7% and UGG sales rose 4.9% — solid figures, but a notable slowdown from the double-digit growth rates previously seen. Deckers also signaled continued margin pressure, raising its tariff assumption for the year to 12.5%.

Market Reaction

The stock's decline was company-specific, occurring while the broader S&P 500 index was trading slightly higher. The combination of a weak top- and bottom-line forecast, decelerating brand momentum, and persistent margin headwinds prompted a sharp selloff from investors.