Analysts at Evercore ISI anticipate a cautious outlook for Deckers Outdoor (DECK, Financial) as the company approaches its fiscal first-quarter earnings report. Key concerns center around a slowdown in the direct-to-consumer segment, particularly for the Hoka brand, which could impact investor sentiment. The firm has decided to remove DECK from its "Tactical Outperform" list prior to the earnings announcement, maintaining an "In Line" rating with a price target set at $110.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Deckers Outdoor Corp (DECK, Financial) is $124.04 with a high estimate of $157.00 and a low estimate of $90.00. The average target implies an upside of 22.00% from the current price of $101.67. More detailed estimate data can be found on the Deckers Outdoor Corp (DECK) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Deckers Outdoor Corp's (DECK, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Deckers Outdoor Corp (DECK, Financial) in one year is $142.11, suggesting a upside of 39.78% from the current price of $101.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Deckers Outdoor Corp (DECK) Summary page.
DECK Key Business Developments
Release Date: May 22, 2025
- Revenue: Increased 16% year-over-year to $4.986 billion for fiscal year 2025.
- Gross Margin: Expanded 230 basis points to 57.9% for fiscal year 2025.
- Operating Margin: Improved 200 basis points to 23.6% for fiscal year 2025.
- Earnings Per Share (EPS): Increased 30% to $6.33 for fiscal year 2025.
- HOKA Revenue: Grew 24% to $2.2 billion for fiscal year 2025.
- UGG Revenue: Increased 13% to $2.5 billion for fiscal year 2025.
- Cash and Equivalents: $1.9 billion as of March 31, 2025.
- Inventory: $495 million, up 4% year-over-year.
- Share Repurchase: $567 million worth of shares repurchased in fiscal year 2025.
- Fourth Quarter Revenue: $1.02 billion, up 6% year-over-year.
- Fourth Quarter Gross Margin: 56.7%, a 50 basis point increase year-over-year.
- Fourth Quarter EPS: $1, a 22% increase year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Deckers Outdoor Corp (DECK, Financial) reported a record performance for fiscal year 2025, with revenue growing 16% to nearly $5 billion.
- The company achieved a gross margin expansion of 230 basis points to 57.9% and an operating margin improvement of 200 basis points to 23.6%.
- Earnings per share increased by 30% to $6.33, showcasing strong financial performance.
- HOKA brand revenue grew 24% to $2.2 billion, with significant international expansion and increased brand awareness.
- UGG brand revenue increased by 13% to $2.5 billion, driven by strong growth across channels and regions, particularly in international markets.
Negative Points
- The company faces macroeconomic uncertainty related to global trade policy, impacting fiscal year 2026 outlook.
- Deckers Outdoor Corp (DECK) anticipates up to $150 million in increased costs due to tariffs, with potential demand erosion.
- HOKA's direct-to-consumer (DTC) growth in the US faced pressure due to model changeovers and macroeconomic factors.
- The company expects a decline in gross margin in fiscal year 2026 due to increased tariffs, higher promotional activity, and unfavorable channel mix.
- Deckers Outdoor Corp (DECK) is cautious about consumer spending in the US, which could impact demand and growth projections.
