Updated 23 Oct 2026, 16:13 CEST. First published 23 Oct 2026, 12:59 CEST. This page is revised in place as the story develops.
Stefano Caroti, President and Chief Executive Officer of Deckers Brands, said on 22 October 2026: "We delivered earnings above our expectations in the second quarter." Refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) added about $0.28 to diluted EPS, which rose 27% to $2.31 from $1.82 a year earlier. The refunds also helped lift the UGG and HOKA owner's full-year forecast to $7.80-$7.95 a share.
Deckers received $46.0m in IEEPA net refunds in the quarter to 30 September 2026, plus $3.0m in interest. The company said the refunds added about 310 basis points to gross and operating margin. Gross margin was 60.5%, against 56.2% a year earlier.
- Net sales, Q2 FY2027 · 30 September 20261.481 $bn
- Diluted EPS, Q2 FY2027 · 30 September 20262.31 $
- IEEPA net refunds received in Q2 · 30 September 202646.0 $m
- DTC comparable net sales change · 30 September 2026-6.4 %
- FY2027 diluted EPS guidance · 22 October 20267.80-7.95 $
Beneath the refund
Deckers net sales by brand, fiscal Q2
$m · 30 September 2026
| Unit: $m | Q2 FY2026 | Q2 FY2027 |
|---|---|---|
| HOKA | 634.1 | 677.2 |
| UGG | 759.6 | 786.4 |
| Other brands | 37.2 | 17 |
Net sales rose 3.5% to $1.481bn, or 2.8% at constant currency. HOKA grew 6.8% to $677.2m and UGG 3.5% to $786.4m. Wholesale sales rose 5.5% to $1.093bn. Direct-to-consumer sales fell 1.8% to $387.5m, and comparable DTC sales fell 6.4%. International sales grew 9.0% to $644.7m, while domestic sales slipped 0.4% to $835.8m. Other brands fell 54.3% as Deckers phased out standalone Koolaburra operations.
Through 8 October 2026, Deckers had received $87.9m in IEEPA net refunds plus $4.7m in interest. Its new full-year diluted EPS range of $7.80-$7.95 includes about $0.52 from those refunds. It now expects net sales of $5.700bn-$5.725bn and an operating margin of about 23%. Deckers bought back $299.3m of stock in the quarter, taking the fiscal year-to-date total to $637.5m.
The refunds follow the US Supreme Court's February 2026 ruling that struck down the IEEPA tariffs, and US Customs and Border Protection is now repaying the duties. Costco said in its annual report that it received $184m, including $10m in interest, in its fiscal year to 30 August 2026.
- Deckers Brands, Second Quarter Fiscal Year 2027 Financial Results (Form 8-K, Exhibit 99.1, SEC EDGAR), 22 Oct 2026, 22:09 CEST
- Supply Chain Dive, Costco CFO doubles down on tariff strategy, 5 Oct 2026, 02:00 CEST
- Costco Wholesale, Annual Report for the fiscal year ended 30 August 2026 (Form 10-K, SEC EDGAR), 7 Oct 2026, 07:13 CEST