Deckers Outdoor (DECK) AI Stock Analysis

• Market Cap: $16.88B
• Dividend Yield: N/A
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.20
• Revenue Growth: 15.43%
• EPS Growth: 24.20%
• Country: US
• Employees: 4,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.93
• Shares Outstanding: 148,343,370
• 10 Day Avg. Volume: 2,611,353
• 30 Day Avg. Volume: 2,587,076
• 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: 0.83
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 10.37
• 1Y Price Target: $128.94
• Price Target Upside: 13.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 71 Outperform
• Price Target: $126.00 ▲(11.29% Upside)

Deckers Outdoor's overall stock score reflects strong financial performance and fair valuation, with technical indicators suggesting mixed momentum. The company's robust international growth and brand performance are significant strengths, but challenges such as declining cash flow growth and macroeconomic uncertainties present risks.

Positive Factors

International Market Expansion

The significant growth in international markets indicates successful global expansion strategies, enhancing long-term revenue potential and reducing reliance on domestic markets.

HOKA Brand Performance

HOKA's strong revenue growth highlights its increasing market acceptance and brand strength, supporting sustained revenue and profitability growth.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.

Negative Factors

Gross Margin Decline

Declining gross margins can pressure profitability, indicating potential challenges in cost management and pricing strategy that could affect long-term earnings.

Tariff Concerns

Rising tariffs increase production costs, potentially squeezing margins and necessitating price adjustments, which could impact competitive positioning and demand.

Declining Cash Flow Growth

Decreasing cash flow growth may limit the company's ability to reinvest in growth opportunities, affecting long-term strategic initiatives and financial health.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.12B	4.99B	4.29B	3.63B	3.15B	2.55B
Gross Profit	2.95B	2.89B	2.39B	1.83B	1.61B	1.37B
EBITDA	1.35B	1.32B	1.04B	716.87M	609.60M	548.07M
Net Income	989.67M	966.09M	759.56M	516.82M	451.95M	382.57M
Balance Sheet
Total Assets	3.84B	3.57B	3.14B	2.56B	2.33B	2.17B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.89B	1.50B	981.79M	843.53M	1.09B
Total Debt	312.07M	276.98M	266.88M	246.49M	222.07M	223.04M
Total Liabilities	1.37B	1.06B	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	880.43M	958.35M	943.82M	456.40M	121.34M	564.00M
Operating Cash Flow	968.02M	1.04B	1.03B	537.42M	172.35M	596.22M
Investing Cash Flow	-76.41M	-75.00M	-89.33M	-81.01M	-51.01M	-32.17M
Financing Cash Flow	-612.70M	-581.33M	-417.68M	-309.03M	-367.48M	-129.58M

Deckers Outdoor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 113.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DECK, the sentiment is Neutral. The current price of 113.22 is below the 20-day moving average (MA) of 117.68, above the 50-day MA of 110.01, and below the 200-day MA of 135.02, indicating a neutral trend. The MACD of 1.52 indicates Positive momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DECK.

Deckers Outdoor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIRK	78 Outperform	8.76B	26.53	11.66%	―	18.66%	183.98%
SHOO	74 Outperform	2.33B	25.19	11.02%	2.62%	7.80%	-48.10%
DECK	71 Outperform	$16.88B	17.47	43.58%	―	15.43%	24.20%
WWW	69 Neutral	2.44B	29.08	17.84%	1.33%	-2.83%	0.00%
CROX	68 Neutral	4.39B	21.57	16.64%	―	2.04%	-71.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Deckers Outdoor Corporate Events

Deckers Outdoor Reports Strong Q1 2026 Revenue Growth

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.