Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor demonstrated strong financial performance in fiscal 2025, with net sales rising 16.9% year-over-year to $964.5 million, significantly surpassing market expectations and the company's own guidance. The company saw impressive international revenue growth of 49.7% year-over-year, contributing $463.3 million, reflecting strong demand beyond its primary U.S. market, which accounted for 64% of total sales. Additionally, while gross margin contracted slightly, it outperformed consensus estimates, and selling, general, and administrative (SG&A) expenses were effectively managed, indicating operational efficiency and a positive outlook for future growth, particularly with Hoka expected to maintain a robust growth trajectory.

Deckers Outdoor is projected to experience a decline in operating margin for fiscal 2025, falling from a record 23.6% due to ongoing investments in the business despite a slight reduction in selling, general, and administrative expenses. The company's fiscal year 2026 earnings per share (EPS) forecast has been revised down to $6.38, reflecting a slow growth environment primarily characterized by flat-lining UGG sales and decelerating growth for Hoka, compounded by external challenges such as increased tariffs and heightened promotional activity. Additionally, a decline in gross margin, expected to range between 53.5% and 54.0%, is attributed to an unfavorable channel mix and rising freight costs, which highlights ongoing financial pressures facing the firm.