DECK · 8-K · 20261022PR000028
Trade Policy and Tariffs
DECKERS OUTDOOR CORP · 2026-10-22 · Importance 53 · Surprise 60 · No source text
Through October 8, 2026, Deckers received $87.9 million in net refunds related to IEEPA tariffs, plus $4.7 million of associated interest. The refunds were reflected as a reduction of cost of sales and an increase to total other income, respectively, and provided an approximately 150-basis-point benefit to gross and operating margins. The refunds contributed approximately $0.52, net of tax, to projected full-year fiscal 2027 diluted EPS; the outlook assumes no further tariff refunds.
Key facts
- Second-quarter fiscal 2027 IEEPA tariff net refunds and associated interest increased gross margin and operating margin by approximately 310 basis points. source
- The company received $46.0 million of IEEPA tariff net refunds and $3.0 million of associated interest in the second quarter of fiscal 2027; the amounts were recognized as a reduction of cost of sales and an increase to total other income, respectively. source
- Through October 8, 2026, the company had received $87.9 million in IEEPA tariff net refunds and $4.7 million in associated interest, reflected as a reduction of cost of sales and an increase to total other income, respectively. source
- The fiscal 2027 outlook includes IEEPA tariff net refunds received through October 8, 2026, and assumes no further tariff-refund collections. source
- The IEEPA tariff-refund benefit included in the fiscal 2027 outlook adds approximately $0.52, net of tax, to projected diluted EPS. source
- The IEEPA tariff-refund benefit included in the fiscal 2027 outlook is approximately 150 basis points to both gross margin and operating margin. source
- The second-quarter fiscal 2027 tariff-refund benefit increased diluted earnings per share by approximately $0.28 after tax. source
- The company identified changes in global trade policy, including tariffs and trade restrictions, as a factor that could affect its fiscal 2027 outlook. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +5.9% | Through October 8, 2026, the company had received $87.9 million in IEEPA tariff net refunds and $4.7 million in associated interest,… |
| margin | positive | realized | +3.1% | Second-quarter fiscal 2027 IEEPA tariff net refunds and associated interest increased gross margin and operating margin by approximately… |
| margin | positive | committed | +1.3% | The IEEPA tariff-refund benefit included in the fiscal 2027 outlook is approximately 150 basis points to both gross margin and operating… |
| net_income | positive | realized | +0.3% | Through October 8, 2026, the company had received $87.9 million in IEEPA tariff net refunds and $4.7 million in associated interest,… |
| cash | positive | realized | — | Through October 8, 2026, the company had received $87.9 million in IEEPA tariff net refunds and $4.7 million in associated interest,… |
| net_income | positive | committed | — | The IEEPA tariff-refund benefit included in the fiscal 2027 outlook adds approximately $0.52, net of tax, to projected diluted EPS. |