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Deckers Outdoor (DECK)
NYSE:DECK
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Deckers Outdoor (DECK) AI Stock Analysis

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DECK

Deckers Outdoor

(NYSE:DECK)

Rating:83Outperform
Price Target:
$127.00
▲(6.16% Upside)
Deckers Outdoor's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust revenue growth and strategic brand positioning, particularly in international markets, are significant strengths. However, technical analysis indicates potential long-term resistance, and valuation suggests moderate growth expectations. Challenges such as declining gross margins and tariff impacts are notable risks.
Positive Factors
Earnings Revisions
Recent positive revisions in earnings per share have been driven by improvements in wholesale and margins.
International Sales
International sales increased by 49.7%, indicating strong global demand.
Shareholder Value
Deckers has a substantial stock repurchase program with $2.4 billion remaining, indicating potential shareholder value return.
Negative Factors
Direct-to-Consumer Sales
Uncertainty exists around future direct-to-consumer sales softness for both HOKA and UGG, especially in the US.
Market Competition
Intense competition in the running category, particularly in the US, could make incremental share gains tougher.
Operating Margins
HOKA's operating margin has declined significantly due to increased payroll, advertising, and rent expenses.

Deckers Outdoor (DECK) vs. SPDR S&P 500 ETF (SPY)

Deckers Outdoor Business Overview & Revenue Model

Company DescriptionDeckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. The company offers premium footwear, apparel, and accessories under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and relaxed casual shoes and sandals under the Sanuk brand name. It also provides footwear and apparel for ultra-runners and athletes under the Hoka brand name; and fashion casual footwear using other plush materials under the Koolaburra brand. The company sells its products through department stores, domestic independent action sports and outdoor specialty footwear retailers, and larger national retail chains, as well as online retailers. It also sells its products directly to consumers through its retail stores and e-commerce websites, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia-Pacific, Canada, Latin America, and internationally. As of March 31, 2022, it had 149 retail stores, including 75 concept stores and 74 outlet stores worldwide. The company was founded in 1973 and is headquartered in Goleta, California.
How the Company Makes MoneyDeckers Outdoor generates revenue primarily through the direct sale of its branded products to consumers and retailers. The company operates a multi-channel distribution strategy that includes wholesale, direct-to-consumer (DTC) through branded retail stores and e-commerce platforms. Key revenue streams include sales from wholesale accounts, DTC sales, and international markets. Significant partnerships with major retail chains and an expanding global presence enhance its earnings potential. Seasonal demand for specific product lines, combined with effective marketing and brand loyalty, further contribute to its financial performance.

Deckers Outdoor Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Examines revenue from different business segments, providing insight into which product lines or services are driving growth and which may need strategic adjustments.
Chart InsightsDeckers Outdoor's HOKA brand continues to show robust growth, with a significant increase in revenue, particularly in international markets. This aligns with the earnings call's emphasis on HOKA's strong brand performance and global expansion. UGG also contributes positively, reflecting strategic brand positioning. However, the 'Other' segment's spike in early 2025 suggests a one-time event or initiative. Despite these gains, the company faces challenges from increased tariffs and macroeconomic uncertainties, which could impact future profitability and demand. Deckers plans to counter these challenges with strategic pricing and cost-sharing measures.
Data provided by:Main Street Data

Deckers Outdoor Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Deckers Brands reported strong revenue and earnings growth, particularly driven by international expansion and brand performance of HOKA and UGG. However, challenges in the U.S. market, declining gross margins, and tariff concerns present notable headwinds.
Q1-2026 Updates
Positive Updates
Record Revenue Growth
Deckers Brands reported a 17% increase in revenue to $965 million for Q1 of fiscal 2026, with HOKA achieving its largest quarter in history and UGG delivering its largest June-ended quarter ever.
International Market Expansion
International revenue surged by 50%, driven by strong performances in EMEA and China for both HOKA and UGG brands.
Earnings Per Share Growth
Diluted earnings per share increased by 24% to $0.93 compared to the prior year period.
HOKA Brand Performance
HOKA's global revenue increased by 20% to $653 million, with international wholesale growing by 30%.
UGG Brand Growth
UGG's global revenue increased by 19% to $265 million, with wholesale revenues increasing by 30%.
Negative Updates
U.S. Consumer Environment Challenges
Deckers faced a choppy U.S. consumer environment, with a 3% decline in U.S. revenue.
Gross Margin Decline
Gross margin decreased by 110 basis points to 55.8%, impacted by unfavorable channel mix, increased promotions, and higher freight rates.
Tariff Concerns
Increased tariffs are expected to create a $185 million impact on cost of goods sold for fiscal year 2026, up from the previous estimate of $150 million.
DTC Channel Pressure
Ongoing pressure in the U.S. online channel for HOKA and UGG, with UGG's DTC revenues decreasing by 1%.
Company Guidance
In the earnings call for Deckers Brands' first quarter of fiscal year 2026, several key metrics were highlighted, reflecting a positive start for the company. Revenue increased by 17% year-over-year to $965 million, with the HOKA brand delivering its largest quarter in history, contributing $653 million in revenue—a 20% increase over the previous year. The UGG brand also saw a significant revenue increase of 19% to $265 million. The company's diluted earnings per share rose by 24% to $0.93. International markets played a crucial role, with international revenue growing by 50%, outpacing the U.S. market. The gross margin for the quarter was 55.8%, down 110 basis points from the previous year, influenced by factors such as increased promotions and higher freight costs. The company is not providing a formal full-year outlook due to macroeconomic uncertainties but expects continued growth led by HOKA and UGG, particularly in international markets and wholesale channels. Deckers remains confident in its ability to navigate these challenges, backed by a strong financial position and strategic brand investments.

Deckers Outdoor Financial Statement Overview

Summary
Deckers Outdoor exhibits strong financial performance with impressive growth in revenue, profitability, and cash flow generation. The company's balance sheet is solid, characterized by low leverage and effective equity utilization. While liabilities have increased, they are well-managed relative to the company's substantial equity base.
Income Statement
92
Very Positive
Deckers Outdoor has shown strong revenue growth with a significant increase in total revenue from $2.13 billion in 2020 to $4.99 billion in 2025. Gross profit margins have been consistently high, reaching 57.88% in 2025, indicating efficient production and cost management. Net profit margin improved to 19.38% in 2025, reflecting enhanced operational profitability. EBIT and EBITDA margins increased consistently, showcasing strong core earnings growth. The company has demonstrated a robust trajectory in revenue and profitability.
Balance Sheet
85
Very Positive
The balance sheet is strong with a low debt-to-equity ratio of 0.11 in 2025, indicating conservative leverage and financial stability. Deckers Outdoor's equity ratio improved to 70.39%, highlighting a strong equity base. Return on equity has been impressive, reaching 38.45% in 2025, showcasing efficient use of shareholder funds. The company maintains substantial cash reserves, supporting its liquidity and operational flexibility. However, the total liabilities have increased, which could pose a risk if not managed effectively.
Cash Flow
88
Very Positive
Deckers Outdoor's cash flow performance is robust, with operating cash flow consistently exceeding net income, indicating strong cash generation capability. The free cash flow has grown steadily, underscoring effective capital expenditure management. The operating cash flow to net income ratio remains healthy at 1.08 in 2025, reflecting efficient cash generation. Free cash flow to net income ratio is strong, further emphasizing the company's ability to convert earnings into cash. Overall, cash flow generation is stable and supports strategic initiatives.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.99B4.99B4.29B3.63B3.15B2.55B
Gross Profit2.89B2.89B2.39B1.83B1.61B1.37B
EBITDA1.32B1.32B1.04B716.87M609.60M548.07M
Net Income966.09M966.09M759.56M516.82M451.95M382.57M
Balance Sheet
Total Assets3.57B3.57B3.14B2.56B2.33B2.17B
Cash, Cash Equivalents and Short-Term Investments1.89B1.89B1.50B981.79M843.53M1.09B
Total Debt276.98M276.98M266.88M246.49M222.07M223.04M
Total Liabilities1.06B1.06B1.03B790.47M793.42M723.48M
Stockholders Equity2.51B2.51B2.11B1.77B1.54B1.44B
Cash Flow
Free Cash Flow958.35M958.35M943.82M456.40M121.34M564.00M
Operating Cash Flow1.04B1.04B1.03B537.42M172.35M596.22M
Investing Cash Flow-75.00M-75.00M-89.33M-81.01M-51.01M-32.17M
Financing Cash Flow-581.33M-581.33M-417.68M-309.03M-367.48M-129.58M

Deckers Outdoor Technical Analysis

Technical Analysis Sentiment
Positive
Last Price119.63
Price Trends
50DMA
105.66
Positive
100DMA
108.89
Positive
200DMA
140.00
Negative
Market Momentum
MACD
3.00
Negative
RSI
69.87
Neutral
STOCH
95.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DECK, the sentiment is Positive. The current price of 119.63 is above the 20-day moving average (MA) of 107.40, above the 50-day MA of 105.66, and below the 200-day MA of 140.00, indicating a neutral trend. The MACD of 3.00 indicates Negative momentum. The RSI at 69.87 is Neutral, neither overbought nor oversold. The STOCH value of 95.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DECK.

Deckers Outdoor Risk Analysis

Deckers Outdoor disclosed 27 risk factors in its most recent earnings report. Deckers Outdoor reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Deckers Outdoor Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$17.75B18.3743.58%15.43%24.20%
77
Outperform
$9.48B14.4214.79%12.11%17.08%
74
Outperform
$2.11B22.8411.09%2.89%7.80%-48.10%
72
Outperform
$9.59B29.0211.36%18.66%183.98%
69
Neutral
$2.60B30.8627.52%1.25%-2.83%
68
Neutral
$4.76B23.4215.39%2.04%-71.52%
61
Neutral
$17.67B14.34-5.25%3.04%1.27%-14.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DECK
Deckers Outdoor
119.63
-30.21
-20.16%
CROX
Crocs
87.20
-52.72
-37.68%
SKX
Skechers USA
63.08
-3.95
-5.89%
SHOO
Steven Madden
29.04
-14.37
-33.10%
WWW
Wolverine World Wide
31.94
18.55
138.54%
BIRK
Birkenstock Holding plc
52.13
2.28
4.57%

Deckers Outdoor Corporate Events

Executive/Board ChangesStock BuybackFinancial Disclosures
Deckers Outdoor Reports Strong Q1 2026 Revenue Growth
Positive
Jul 24, 2025

On July 24, 2025, Deckers Brands announced that Dave Powers will retire from the Board of Directors and will not stand for reelection at the 2025 Annual Meeting of Stockholders, with Patrick J. Grismer nominated for election. The company reported a 17% increase in first-quarter fiscal year 2026 revenue, reaching $965 million, and a 24% rise in diluted EPS to $0.93, driven by strong performances from HOKA and UGG brands. Despite global trade uncertainties, Deckers remains confident in its brand strength and long-term opportunities. The company also repurchased 1.7 million shares of its stock for $183 million, with $2.4 billion remaining under its repurchase authorization.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025