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Worth notingMarket eventThu, Oct 221 min read
Aggressive rival discounts put premium footwear brands under greater pressure to sustain sales while protecting profit margins.
Deckers, the owner of HOKA and UGG, reported fiscal second-quarter 2027 results after the US market closed on October 22, 2026. Revenue rose 3.5% from a year earlier to $1.48 billion, below analysts' expectations; earnings per share of $2.03 exceeded the $1.82 consensus estimate and the year-earlier $1.82.[1][2][3]
The company lowered its annual sales outlook to $5.7 billion–$5.73 billion as it expects slower HOKA and UGG growth. Softer US direct-to-consumer demand—sales through the brands' own stores and websites—and shipping disruptions in Europe weighed on performance.[4][2]
Aggressive discounts from rivals are pressuring premium brands by giving shoppers cheaper alternatives. Matching those discounts can reduce profit per pair; holding prices can leave brands with slower sales growth. That makes Deckers' outlook cut a warning for other premium footwear businesses as well.[5]
Sales channels are showing different levels of strength. HOKA's wholesale sales—shipments to retailers—rose 9% to $444 million, while direct-to-consumer sales rose 4% to $234 million, showing retailer purchases growing faster than the brand's direct sales to shoppers. Deckers' improved margins helped earnings beat expectations this quarter, but continued discount competition would make those margins harder to defend.[6][7][5]
HOKA, UGG and their competitors face tougher price competition. Discounting brands may attract more price-conscious shoppers at the cost of profit per pair, while brands maintaining premium prices need stronger product appeal to sustain sales. Deckers' outlook cut shows this trade-off weighing on growth prospects.[4][5]