Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor has demonstrated robust revenue growth, with net sales increasing 9.1% year-over-year to $1.431 billion, surpassing market expectations and guidance. The company reported a significant rise in international sales, which grew 29.3% year-over-year, contributing to an overall strong performance in its wholesale channel, which increased 13.4% year-over-year to $1.036 billion. Additionally, Deckers maintains a strong balance sheet with $1.414 billion in cash and cash equivalents and no outstanding debt, underscoring its financial stability and capacity for continued growth.

Deckers Outdoor faces significant headwinds in fiscal year 2026, particularly with tariffs projected to impose a $150 million impact, which is a reduction from an earlier estimate of $185 million but still substantial. The company's operating margin is expected to decline from last year's record of 23.6% due to slight SG&A deleveraging as it continues investing in its business. Additionally, the outlook for growth appears bleak, with UGG’s sales growth anticipated to flat-line and Hoka projected to slow to single-digit growth, contributing to a flat-year-over-year EPS forecast and a continued decline in DTC revenues.