Deckers Outlines FY2027 Profit Targets, Adjusts for Tariff Impact

Deckers Outdoor Corporation has provided investors with a long-term financial outlook, projecting earnings per share (EPS) between $7.35 and $7.50 for fiscal year 2027. The guidance comes as the footwear and apparel company updates its internal assumptions regarding international trade policy.

In conjunction with the earnings target, the company raised its tariff assumption to 12.5%. This adjustment reflects the current economic landscape and potential costs associated with imported goods. Deckers will likely look to mitigate these expenses through a mix of pricing strategies and supply chain optimizations, though the increased rate puts pressure on gross margins if not managed effectively.

The forecast focuses on a multi-year trajectory, signaling management’s confidence in the strength of its brand portfolio despite broader consumer cyclical headwinds. The company operates in a competitive global market, designing and distributing footwear and accessories for both high-performance activities and casual lifestyle use.

Following the announcement, market sentiment appears to be weighing the increased cost assumptions against the company’s growth projections. Deckers Outdoor Corporation is currently trading at $96.23, representing a decline of 5.69% from the previous close of $102.03. The company holds a market capitalization of approximately $14.21 billion.

What to watch

• Execution on strategies to offset the increased 12.5% tariff assumptions.
• Progress toward the FY2027 EPS target of $7.35–$7.50.
• Future quarterly reports for updates on gross margin trends relative to tariff impacts.

Source: original release