Deckers Outdoor (DECK) AI Stock Analysis

• Market Cap: $17.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.29
• Revenue Growth: 12.38%
• EPS Growth: 18.43%
• Country: US
• Employees: 4,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 3.33
• Shares Outstanding: 145,744,830
• 10 Day Avg. Volume: 3,570,669
• 30 Day Avg. Volume: 2,622,129
• PEG Ratio: 0.59
• Price to Book (P/B): 6.76
• Price to Sales (P/S): 3.41
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 12.07
• 1Y Price Target: $124.47
• Price Target Upside: 4.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $137.00 ▲(14.80% Upside)

The score is driven primarily by strong financial performance and a highly positive earnings call with raised guidance and continued margin strength. Technicals remain supportive due to a clear uptrend, though overbought RSI adds near-term risk. Valuation is reasonable on earnings (P/E 16.87) but lacks dividend support in the provided data.

Positive Factors

Margin Robustness

Sustained high gross and net margins reflect durable pricing power, strong product mix, and effective cost control. These margins support long-term profitability resilience across cycles, enabling reinvestment, marketing, and buffer versus cost shocks while preserving return on capital.

Cash Generation & Liquidity

Consistent cash conversion and solid FCF growth provide lasting financial flexibility to fund product innovation, international expansion, and sizable share repurchases without raising leverage. Strong liquidity reduces refinancing risk and supports strategic investment over multiple quarters.

Brand Momentum & Diversification

Rapid HOKA growth alongside large, stable UGG revenues diversifies seasonality and widens addressable markets. Multiple strong brands reduce single-brand dependence, enable cross-channel strategies, and sustain multi-year revenue expansion driven by product innovation and marketing.

Negative Factors

Tariff Exposure

Significant tariff exposure is a structural policy risk that can compress gross margins and introduce earnings volatility if duties persist or widen. Management's partial mitigation may not offset sustained tariff regimes, which would pressure long-term margin sustainability and cash returns.

Rising Inventory Levels

Elevated inventory ties up working capital and raises markdown and obsolescence risk, which can erode margins and FCF if demand softens. Persistent higher inventories require disciplined merchandising and demand planning to avoid lasting margin and liquidity pressure over coming quarters.

Underpenetrated Distribution (HOKA)

Material underpenetration implies execution and investment risk to scale internationally. Expanding channels and doors requires sustained capex, inventory deployment, and partner execution; missteps could slow growth, raise SG&A, or compress margins during multi-quarter expansion phases.

Deckers Outdoor Business Overview & Revenue Model

Company Description

Deckers 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 Money

Deckers Outdoor generates revenue primarily through the sale of its branded products across various channels, including wholesale, direct-to-consumer (DTC), and e-commerce. The wholesale segment involves selling products to retailers and distributors, while the DTC segment includes sales made through company-owned retail stores and online platforms. A significant portion of Deckers' earnings comes from the UGG brand, particularly during the fall and winter seasons, while HOKA ONE ONE has seen rapid growth in recent years, contributing to increased market share in the performance running category. The company also benefits from strategic partnerships with various retailers and e-commerce platforms, enhancing its distribution capabilities. Additionally, Deckers focuses on product innovation and marketing initiatives to attract and retain customers, which further drives sales and revenue growth.

Deckers Outdoor Financial Statement Overview

Summary

Strong fundamentals supported by high profitability (TTM gross margin 57.66%, net margin 19.36%), solid operating efficiency (EBIT margin 24.84%), strong cash conversion (operating cash flow to net income 1.10), and conservative leverage (debt-to-equity 0.14).

Income Statement

Deckers Outdoor shows strong financial performance with consistent revenue growth and solid profitability margins. The TTM data indicates a gross profit margin of 57.66% and a net profit margin of 19.36%, reflecting efficient cost management and strong pricing power. Revenue growth is steady, with a 2.33% increase in the TTM period, indicating a healthy demand for its products. EBIT and EBITDA margins are robust at 24.84% and 25.49%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.14, indicating conservative leverage and financial stability. Return on equity is impressive at 40.31%, reflecting efficient use of shareholder funds to generate profits. The equity ratio stands at 65.15%, highlighting a strong equity base relative to total assets. Overall, the company maintains a healthy financial position with manageable debt levels.

Cash Flow

Cash flow generation is strong, with a free cash flow growth rate of 11.30% in the TTM period, indicating effective cash management. The operating cash flow to net income ratio is 1.10, suggesting that the company efficiently converts its earnings into cash. The free cash flow to net income ratio is high at 91.87%, demonstrating strong cash flow relative to profits, which supports future growth and shareholder returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.24B	4.99B	4.29B	3.63B	3.15B	2.55B
Gross Profit	3.02B	2.89B	2.39B	1.83B	1.61B	1.37B
EBITDA	1.38B	1.32B	1.04B	716.87M	609.60M	548.07M
Net Income	1.02B	966.09M	759.56M	516.82M	451.95M	382.57M
Balance Sheet
Total Assets	3.78B	3.63B	3.14B	2.56B	2.33B	2.17B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.89B	1.50B	981.79M	843.53M	1.09B
Total Debt	350.67M	276.98M	266.88M	246.49M	222.07M	223.04M
Total Liabilities	1.32B	1.12B	1.03B	790.47M	793.42M	723.48M
Stockholders Equity	2.47B	2.51B	2.11B	1.77B	1.54B	1.44B
Cash Flow
Free Cash Flow	979.91M	958.35M	943.82M	456.40M	121.34M	564.00M
Operating Cash Flow	1.07B	1.04B	1.03B	537.42M	172.35M	596.22M
Investing Cash Flow	-86.49M	-75.00M	-89.33M	-81.01M	-51.01M	-32.17M
Financing Cash Flow	-789.79M	-581.33M	-417.68M	-309.03M	-367.48M	-129.58M

Deckers Outdoor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 119.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 119.34 is above the 20-day moving average (MA) of 103.25, above the 50-day MA of 99.04, and above the 200-day MA of 104.10, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 49.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DECK.

Deckers Outdoor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	80 Outperform	$17.39B	16.87	39.69%	―	12.38%	18.43%
BIRK	77 Outperform	$6.94B	18.10	12.67%	―	18.86%	88.29%
SHOO	64 Neutral	$3.19B	55.73	6.68%	1.97%	6.26%	-66.51%
CROX	63 Neutral	$4.36B	27.36	11.82%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.45B	16.90	25.57%	2.28%	3.61%	―