Goleta, California-based Deckers Outdoor Corporation (DECK) is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. With a market cap of $16.9 billion, Deckers' proprietary brands include UGG, HOKA, Teva, Sanuk, and Koolaburra.
The company has significantly underperformed the broader market over the past year. Deckers’ stock prices have plummeted 26.5% over the past year and 42.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 15.2% returns over the past year and 10.2% surge in 2025.
Narrowing the focus, Deckers has also underperformed the sector-focused Consumer Discretionary Select Sector SPDR Fund’s (XLY) 25.7% surge over the past 52 weeks and 4.2% uptick in 2025.
However, the stock has observed notable gains in the past month. Deckers Outdoor’s stock prices soared 11.4% in a single trading session following the release of its Q1 results on Jul. 24. Driven by the solid performance of HOKA and UGG, the company’s net sales for the quarter surged 16.9% year-over-year to $964.5 million, surpassing the Street expectations by a notable 7.3%. Further, its EPS skyrocketed 24% year-over-year to $0.93, exceeding the consensus estimates by a staggering 36.8%.
For the full fiscal 2026, ending in March 2026, analysts expect Deckers to report an EPS of $6.29, down a marginal 63 bps year-over-year. However, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters by significant margins.
The stock has a consensus “Moderate Buy” rating overall. Of the 24 analysts covering the stock, opinions include nine “Strong Buys,” one “Moderate Buy,” 13 “Holds,” and one “Strong Sell.”
This configuration is slightly pessimistic compared to two months ago, when none of the analysts gave “Strong Sell” recommendations.
On Jul. 25, Raymond James analyst Rick Patel reiterated a “Strong Buy” rating on DECK and raised the price target from $123 to $137.
As of writing, DECK’s mean price target of $128.99 represents a 10.5% premium to current price levels. Meanwhile, the street-high target of $158 suggests a 35.4% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
