Deckers cut its full-year revenue guidance by roughly $170 million (HOKA to high single digit growth and UGG to low single digits), and management made clear it won't chase revenue in a U.S. marketplace that "became increasingly promotional." Excluding tariff refunds, gross margin still went up and 2Q EPS beat the top end of guidance by a wide margin. Most consumer companies would have discounted their way to the revenue number, and we think Deckers will ultimately get more credit for not doing so once the promotional cycle passes. This note digs into the most interesting comment from the call, HOKA introducing a new value shoe called Fly Pace, along with our updated thoughts on the company, guidance, and consensus.
Upon Further Review: Deckers (10/31/26)
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