Deckers Outdoor, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Christopher Nardone from Bank of America Securities reiterated a Hold rating on the stock and has a $120.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Christopher Nardone’s rating is based on a combination of factors impacting Deckers Outdoor’s financial performance. The operating margins for the HOKA brand have declined significantly, with a notable decrease in gross margin and an increase in selling, general, and administrative expenses due to higher payroll, advertising, and rent costs. While there is potential for some recovery in promotional headwinds in the latter half of 2026, the focus remains on whether direct-to-consumer trends will improve in the upcoming quarter.
Additionally, the UGG brand experienced a slight decline in operating margins, though this is not a major concern given its small contribution to overall profitability in the first quarter. The company’s strategic buybacks and remaining capacity under its stock repurchase program are positive indicators, yet uncertainties around direct-to-consumer softness, especially in the US market, balance out recent positive earnings revisions. As a result, the Hold rating reflects a cautious stance amidst these mixed signals.
DECK’s price has also changed dramatically for the past six months – from $177.360 to $106.170, which is a -40.14% drop .