Deckers Cuts Sales Outlook as Fiscal Second-Quarter EPS Rises 27%

Deckers Outdoor Corporation lowered its full-year sales forecast after fiscal second-quarter results, trimming its revenue range even as record quarterly revenue and a 27% gain in diluted earnings per share (EPS) marked the period.

The company set its full-year sales outlook at $5.70 billion to $5.725 billion, down from its previous range of $5.86 billion to $5.91 billion. It raised its diluted EPS forecast to $7.80 to $7.95 from $7.35 to $7.50.

Fiscal second-quarter diluted EPS was $2.31, up from $1.82 a year earlier. Net income rose to $313.1 million from $268.2 million, an increase of about 17%.

Deckers also lowered its sales-growth expectations for its brands. HOKA sales are now expected to grow at a high-single-digit rate, compared with the prior low-double-digit outlook. UGG sales are expected to rise at a low-single-digit rate, down from the previous mid-single-digit forecast.

Refunds tied to the International Emergency Economic Powers Act (IEEPA) added about $0.28 to diluted EPS. They also provided a net 310-basis-point benefit to gross and operating margins.