Deckers Outdoor Corp. saw several analysts reduce price targets on its shares and lower earnings estimates for the current and next fiscal year as management provided guidance that implied a growth deceleration in its fiscal second half. However, several analysts reiterated their “Buy” ratings on the stock, citing still-healthy demand signals, particularly for Hoka.

As reported, Deckers last Thursday, October 23, delivered earnings in the fiscal second quarter ended September 30 of $1.82 per share, surpassing analysts’ consensus estimate of $1.58 and topping year-ago estimates of the prior-year quarter’s $1.59. The beat was attributed to better-than-expected gross margins and robust international growth.

Net sales increased 9.1 percent year-over-year to $1.43 billion and outpaced the consensus estimate of $1.41 billion. On a constant-currency basis, net sales grew 8.3 percent.

Hoka’s sales increased 11.1 percent to $634.1 million. Hoka’s sales slowed from the 19.8 percent gain in the fiscal first quarter due to earlier Q1 wholesale shipments but were ahead of guidance calling for sales to increase approximately 10 percent.

Ugg’s sales grew 10.1 percent to $759.6 million, likewise slowing from the 18.9 percent increase seen in the fiscal first quarter but ahead of guidance calling for sales to increase “at least mid-single digits.”

The company provided full-year guidance after withholding it in recent quarters due to uncertainty tied to U.S. tariffs.

For FY26, the company expects revenue of about $5.35 billion, shy of Wall Street’s $5.45 billion forecast. It expects earnings per share to be between $6.30 and $6.39, roughly in line with the $6.32 per-share estimate.

Hoka’s sales are expected to grow in the low-teens for the fiscal year, while Ugg is seeing expansion in the low- to mid-single-digits.

At Citi Research, Paul Lejuez reiterated his “Buy” rating while lowering his price target to $120 from $150. Citi lowered its FY26 and FY27 estimates to $6.50 from $6.54 and to $7.07 from $7.39, respectively, reflecting weaker Hoka and Ugg sales, and lower FY27 gross margins.

Lejuez said that while the quarter’s EPS beat consensus targets, driven by stronger gross margin, it was a “disappointing” quarter overall. He noted that management’s updated FY26 guidance puts Hoka’s and Ugg’s growth slightly below its pre-tariff guidance provided earlier this year. The second-half guidance also implies a decline in Ugg’s third-quarter sales.

Lejuez added, “On the positive side, Hoka sell-through rates are exceeding sell-in (suggesting 2H upside), guidance assumes more elasticity to price increases vs what they are seeing currently (seems conservative), and 2H guidance seems heavily influenced by the lull in Sept/Oct (big UGG season still ahead). While we expect shares to be pressured on the weaker 2H guidance, our F26 ests are only slightly lower ($6.50 vs $6.54 prior). We maintain our Buy rating.”

Williams Trading reiterated its “Buy” rating on Deckers while trimming its price target from $150 to $145. The investment firm lowered its estimates to $6.50 from $6.54 for the current fiscal year and to $7.24 from $7.40 for FY27.

Analyst Sam Poser believes the guidance was “disappointing, and, we believe conservative,” as typical for Deckers’ management. He believes the strong stock hit reflects investor concerns over discretionary spending.

Poser wrote, “Based on numerous channel checks with executives at both large and small retailers that carry Ugg and Hoka, we foresee ongoing strength for both brands. Further, Deck protects the sanctity of and manages scarcity models for the UGG & Hoka brands better than almost every company within our coverage. The combination of best-in-class brand management and compelling new product offerings means that the double-digit down draft in the stock price is a great entry point going into holiday and next year.”

Bank of America maintained its “Neutral” rating while slowly increasing its price target to $122 from $120. The firm increased its estimate for the current fiscal year to $6.47 from $6.40, and for FY27 to $6.76 from $6.72, to reflect better sales trends in the latest quarter.

Analyst Christopher Nardone said, “We think near-term EPS momentum is offset by the potential for peak EBIT margins this year and elevated competition in running footwear.” Near-term potential positives cited in BofA’s note include the benefits from pricing actions taken at the start of July and signs of a strong back-to-school for Hoka and Ugg, and continued strength at wholesale. Nardone said reinstating full-year guidance could ultimately prove to be a positive catalyst for investors. The analyst stated, Strong int’l and wholesale may drive near-term EPS upside, but multiple expansion will remain dependent on the trajectory of DTC.”

Raymond James reiterated its “Strong Buy” rating while lowering its price target to $115 from $137. The firm raised its estimate for the current fiscal year to $6.45 from $6.35 in the current fiscal year and to $7.19 from $7.15 prior for FY27.

Analyst Rick Patel in a note reiterated several positives, including underlying demand for HOKA remains strong, noting that Deckers management indicated “sell-in is stronger than sell-through” at wholesale, newer products (Clifton, Bondi, Arahi, Challenger, Mafate) are being well received, higher prices set in July haven’t met resistance, Hoka’s spring/summer 2026 order book is strong, and wholesale accounts have given positive feedback on fall 2026 innovation.

Patel expects Hoka’s growth in the 13 percent to 14 percent range in the fiscal second half.

Other positives cited included Hoka’s U.S. DTC improving quarter over quarter, with more improvement expected in the second half; stronger Ugg wholesale sell-in, which likewise underscored strong demand for the boot brand; and strong international growth. Patel also noted that Deckers has a “long history of conservative guidance,” with results beating Street revenue and EPS estimates for 16 straight quarters. Patel stated,” We lower estimates and PT to $115 to be closer to guide but reiterate our Strong Buy rating.”

Stifel’s Peter McGoldrick reiterated his “Hold” rating and cut his price target from $127 to $117.McGoldrick said the second quarter’s beat reflects strength in the Ugg brand and outgrowth in wholesale, up 13.4 percent year over year, and international, ahead 29.3 percent year-over-year. He said, “Brands continue to resonate globally, and the navigation of tariff challenges is much better than previously expected (up to $55mn benefit to FY26E EBIT).

On the downside, Hoka’s growth decelerated to 11.1 percent in the second quarter from 19.8 percent in the fiscal first quarter, and the outlook for low-double-digit growth fell short of many investors’ expectations of mid-teen growth. McGoldrick said he sees low-double-digit normalized topline growth for Hoka despite “intensifying competition, supported by DTC acceleration and supportive dynamics through F2H26.” In all, McGoldrick said Deckers still has the “capacity” to deliver high-single-digit topline growth and low-double-digit EPS growth.

Image courtesy Hoka