Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor achieved a notable increase in revenue, with domestic sales rising by 2.7% year-over-year and international sales increasing by 15.0% year-over-year, reflecting a solid growth trajectory. The company raised its fiscal 2026 revenue guidance to a range of $5.4 billion to $5.425 billion, exceeding prior estimates and showcasing confidence in its operational performance. Both Hoka and UGG brands contributed significantly to this growth, with Hoka achieving a 19% revenue increase and UGG demonstrating balanced growth across wholesale and direct-to-consumer channels, underscoring the strength of Deckers' brand portfolio.

Deckers Outdoor's fiscal 2025 revenue guidance of $1,047 million to $1,072 million represents only a 2.5% to 5.0% year-over-year increase, falling short of previous estimates and indicating potential stagnation in key brand growth, particularly for UGG. Additionally, the company's diluted EPS guidance of $0.74 to $0.79 is below prior estimates, signaling a slowdown in earnings growth that could lead to a significant decline in share price based on projected future earnings. Compounding these issues are pressures on gross margins, driven by potential increases in tariffs and markdowns, as well as broader macroeconomic risks and changing consumer preferences, all of which may contribute to an unfavorable outlook for the company.