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They have not mastered it yet, and that's where we need to put them. Sometimes they are "rusty" from the summer slide and hopefully they will remember in a short time.
I would agree with Carol that it's important to address the current need. Hopefully the 2nd round will be quicker and the student/s can move through the sequence more rapidly. This might be an indicator of a need for additional summer support if that is available in your school. I would also suggest that you consider strategies to increase retention and generalization of the skill. Maybe add some of the modifications found on the Getting Started page or in the Generalized Practice section at the end of each intervention.
What does your school do with students who receive intervention services throughout the school year and progress from Intervention P-3 through P-5, yet return in the fall and their screening accuracy score indicates need for Decoding assessments again. The Decoding assessment indicates the student needs to be placed in P-3 again! It feels like we have one or two students who appear to get caught up in a cycle like this. Other indicators are not pointing to SpEd eligibility, so we haven't always gone that route. However, we did with one of those students this fall, and she did not qualify for services.....P-3 here we go again!