Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor demonstrated strong financial performance in fiscal 2025, with total net sales growing by 9.1% year-over-year to $1.431 billion, exceeding both market expectations and company guidance. Notably, UGG brand sales rose by 10.1% year-over-year to $759.6 million, indicating robust demand and better-than-forecasted performance. Furthermore, the company's balance sheet remained strong, with cash and cash equivalents increasing to $1.414 billion and no outstanding debt, underscoring its solid financial position and capacity for future investments.

Deckers Outdoor is facing significant challenges ahead, with a projected $150 million hit from tariffs in fiscal year 2026, representing a decrease from earlier expectations but still a substantial burden on profitability. The company anticipates lower operating margins than the record 23.6% achieved the previous year, compounded by expectations of flat growth for its UGG brand and slowing single-digit growth for Hoka, aggravated by a tough macroeconomic environment. Additionally, a 2.9% year-over-year decline in direct-to-consumer revenues and expectations of gross margin contraction further contribute to a negative outlook for Deckers' financial performance.