Deckers Outdoor (NYSE:DECK) Announces Quarterly Earnings Results

Deckers Outdoor (NYSE:DECK) posted its quarterly earnings data on Thursday. The textile maker reported $2.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.79 by $0.52, FiscalAI reports. The firm had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.51 billion. Deckers Outdoor had a return on equity of 42.42% and a net margin of 19.18%. The business’s revenue for the quarter was up 3.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.82 EPS.

Here are the key takeaways from Deckers Outdoor’s conference call:

• Second-quarter revenue rose 3.5% to $1.48 billion, led by HOKA growth of 7% and UGG growth of 4%. Adjusted EPS, excluding the tariff-refund benefit, increased 11.5% to $2.03.
• Gross margin expanded 430 basis points to 60.5%, including a 310-basis-point benefit from IEEPA tariff refunds, while underlying margin improved 120 basis points through full-price selling and favorable product mix. Management maintained its focus on protecting premium pricing rather than matching competitors’ promotions.
• The company lowered its growth outlook amid a more promotional U.S. market, softer domestic direct-to-consumer trends, and consumer pressure. Fiscal 2027 revenue is now expected at $5.7 billion-$5.725 billion, with HOKA growth in the high single digits and UGG growth in the low single digits.
• HOKA’s U.S. DTC business was pressured by athletic-footwear promotions and weaker franchise updates, while UGG DTC declined 8% in the quarter. A European third-party logistics disruption delayed approximately $22 million of shipments, with some sales potentially shifting beyond the current fiscal year or being canceled.
• Management highlighted a strong product pipeline—including HOKA Bondi 10, Mach Pro, and lower-priced Fly Pace, alongside UGG’s expanding sneaker, clog, apparel, and lifestyle offerings—and expects these launches to support renewed growth. Deckers also repurchased approximately $299 million of shares in the quarter and plans $1 billion of fiscal-year buybacks.

Deckers Outdoor Trading Down 0.4%

Deckers Outdoor stock traded down $0.35 during trading hours on Monday, reaching $80.74. 720,841 shares of the company were exchanged, compared to its average volume of 2,553,402. The firm has a market cap of $11.00 billion, a price-to-earnings ratio of 10.70, a PEG ratio of 1.21 and a beta of 1.12. The stock has a 50-day moving average of $83.43 and a 200 day moving average of $96.85. Deckers Outdoor has a 12 month low of $77.20 and a 12 month high of $122.29.

Key Deckers Outdoor News

Here are the key news stories impacting Deckers Outdoor this week:

• Positive Sentiment: Deckers raised its profit outlook, reinforcing the potential for earnings growth and making the stock appear attractively valued after its recent decline. Deckers Outdoor Lifted Profit Outlook
• Positive Sentiment: Second-quarter commentary highlighted continued revenue momentum from the HOKA and UGG brands, supporting the company’s growth strategy despite a more challenging consumer environment. Deckers Outdoor Q2 Earnings Call Highlights
• Neutral Sentiment: Analyst coverage remains mixed, with brokerages collectively rating DECK around “Hold,” suggesting that strong brand performance and reasonable valuation are offset by concerns about near-term growth. Deckers Stock Rated Hold by Wall Street Brokerages
• Neutral Sentiment: Deckers continues to be monitored as one of the leading outdoor-apparel stocks, keeping the company visible to investors but adding little new fundamental information. Top Outdoor Stocks to Follow
• Negative Sentiment: A Seeking Alpha analysis downgraded the stock, arguing that a sharp slowdown in direct-to-consumer sales offsets DECK’s inexpensive valuation and brand strength. Deckers Sharp DTC Slowdown Offset by Cheap Price
• Negative Sentiment: Piper Sandler downgraded Deckers to Underweight from Neutral, adding to bearish pressure on the shares. Piper Sandler Downgrades Deckers
• Negative Sentiment: Stifel, BNP Paribas Exane, Evercore, Jefferies, Sanford C. Bernstein, and Raymond James all lowered their expectations or price targets, signaling broader concern about valuation catalysts and future growth. Stifel Lowers Deckers Expectations BNP Paribas Exane Lowers Deckers Expectations Evercore Forecast

Analyst Ratings Changes

Several analysts have issued reports on DECK shares. Robert W. Baird set a $95.00 price objective on Deckers Outdoor in a report on Friday. Jefferies Financial Group dropped their target price on Deckers Outdoor from $130.00 to $120.00 and set a “hold” rating on the stock in a report on Friday. Stifel Nicolaus dropped their target price on Deckers Outdoor from $133.00 to $113.00 and set a “buy” rating on the stock in a report on Friday. Needham & Company LLC dropped their target price on Deckers Outdoor from $125.00 to $96.00 and set a “buy” rating on the stock in a report on Friday. Finally, KeyCorp reiterated a “sector weight” rating on shares of Deckers Outdoor in a report on Friday, July 24th. Eleven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $105.79.

About Deckers Outdoor

Deckers Outdoor Corporation, doing business as Deckers Brands (NYSE: DECK), is a global footwear, apparel and accessories company. Its portfolio includes UGG, known for sheepskin and casual footwear; HOKA, which focuses on performance and running shoes; Teva, which offers outdoor and sport sandals and footwear; and Koolaburra by UGG, a lifestyle footwear brand.

The company sells its products through department and specialty stores, independent retailers, international distributors, company-owned retail stores and e-commerce websites.