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Deckers Outdoor Corporation (DECK), with a market capitalization of approximately $12.8 billion, is a global footwear and lifestyle company that owns brands including UGG, HOKA, Teva, and Ahnu. The Goleta, California-based company designs, markets, and distributes premium, distinctive footwear and lifestyle products focused on outdoor, athletic, and casual categories.
Shares of the footwear and lifestyle company have considerably underperformed the broader market over the past year. DECK has declined 21.3% over this period, while the broader S&P 500 Index ($SPX) has advanced 18.7%. On a year-to-date basis, DECK has also continued to underperform, declining 13.7%, compared with the index’s 12.1% gain over the same period.
Narrowing the comparison, DECK has also underperformed the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which has gained marginally over the past year and declined 1.9% on a YTD basis.
On July 23, Deckers Brands reported its fiscal Q1 2027 earnings, with shares falling about 6.1% as investors focused on tariff pressures and the margin outlook. The company reported its first-ever $1.02 billion quarterly revenue, up 5.7% year over year, driven by 7.7% growth at HOKA and 4.9% growth at UGG. Net income per share rose 1.1% year over year to $0.94.
Deckers raised its full-year fiscal 2027 diluted EPS guidance to $7.35 to $7.50 from $7.30 to $7.45, while maintaining its net sales guidance of $5.86 billion to $5.91 billion. The company also raised its gross margin outlook to slightly above 56.5%.
For the current fiscal year ending in March 2027, analysts expect DECK’s diluted EPS to increase 6.8% to $7.50. DECK has surpassed consensus EPS estimates in each of the past four quarters, which is an impressive track record.
Among the 26 analysts covering DECK stock, the consensus rating is “Moderate Buy.” The rating is based on 10 “Strong Buy” ratings, two “Moderate Buy” ratings, 12 “Hold” ratings, and two “Strong Sell” ratings.
DECK’s analyst configuration is more bullish than it was two months ago, when the stock had nine “Strong Buy” recommendations.
On August 24, Wells Fargo analyst Ike Boruchow maintained a “Sell” rating on Deckers Outdoor and kept the price target at $85.
Based on analysts’ estimates, DECK’s mean price target of $120.06 implies a 34.2% upside, while the Street-high target of $184 represents a 105.7% premium.
