Deckers Says U.S. Promotions Weighed on E-Commerce Performance

Deckers Outdoor CEO Stefano Caroti said increased promotions in U.S. athletic footwear weighed on the company’s e-commerce performance in the quarter ended Sept. 30, as direct-to-consumer sales declined.

“In the U.S., we saw promotional activity increase throughout the quarter, particularly in athletic footwear, which weighed on our U.S. e-commerce performance as we maintained full price discipline,” Caroti said on the Oct. 22 earnings call.

Direct-to-consumer sales fell 1.8% to $387.5 million. Comparable direct-to-consumer sales declined 6.4% on a constant-currency basis.

Deckers’ overall second-quarter net sales rose 3.5% to $1.481 billion, and diluted earnings per share increased 27% to $2.31. Wholesale sales grew 5.5% to $1.093 billion.

Chief Financial Officer Steve Fasching said about $22 million in second-quarter sales were affected by shipment delays tied to the company’s EMEA third-party logistics transition. He said some delayed shipments could be pushed out further or canceled.

Caroti said Deckers would prioritize “margin preservation and long-term value” over pursuing near-term revenue that could dilute its brands. He also said the company maintained full-price discipline as promotions increased.

The call followed Deckers’ revised fiscal 2027 outlook. The company forecasts sales of $5.7 billion to $5.725 billion and diluted earnings per share of $7.80 to $7.95 for the year ending March 31, 2027.

The earnings-per-share range includes an estimated $0.52 per-share benefit from tariff refunds and related interest. Through Oct. 8, Deckers had received $87.9 million in net refunds and $4.7 million in interest; its forecast assumes no further refund collections.