On July 24, 2026, Deckers Outdoor Corp DECK experienced a stock decline of approximately 3% following the announcement of its first-quarter earnings. Despite reporting quarterly revenue exceeding $1 billion for the first time, the sales growth of its key brands, Hoka and Ugg, slowed, missing market expectations.
- GF Valueā¢ verdict: $152.10 vs Current Price $96.23 = 36.7% undervalued
- GF Scoreā¢: 94/100, indicating strong overall performance
- Financial Strength: 9/10, showcasing a solid balance sheet
What's Behind the News?
Deckers Outdoor Corp reported revenue of $1.02 billion for the quarter ending June 30, 2026, marking a 5.7% year-over-year increase. Although this aligns closely with market forecasts, the growth rates of its flagship brands, Hoka and Ugg, fell short of Wall Street estimates. Hoka's net sales reached $703.5 million, growing 7.7%, while Ugg's net sales were $278 million, up 4.9%. Additionally, despite a diluted earnings per share of $0.94 that surpassed analyst expectations of $0.87, the net profit declined from $139.2 million last year to $130 million this quarter. Management raised its full-year earnings per share forecast to between $7.35 and $7.50 but maintained its revenue outlook at $5.86 billion to $5.91 billion, slightly below market expectations. Rising tariffs and shipping costs could further pressure profit margins in the current quarter.
Founded in 1973, Deckers Outdoor Corp is a California-based company engaged in designing and selling casual and performance footwear, apparel, and accessories. The company operates in the Consumer Cyclical sector, specifically within the Manufacturing - Apparel & Accessories industry. With a market capitalization of approximately $13.36 billion, Deckers generates a significant portion of its sales through wholesale partnerships while also maintaining a robust direct-to-consumer segment. In fiscal 2026, its primary brands, Ugg and Hoka, accounted for 50% and 47% of total sales, respectively, with 58% of sales generated in the United States.
Is DECK Overvalued or Undervalued?
According to GuruFocus, Deckers Outdoor Corp has a GF Valueā¢ of $152.10, indicating that the stock is currently trading at a significant discount, approximately 36.7% undervalued compared to its intrinsic value. This margin of safety suggests that investors may have an opportunity to acquire shares at a price lower than their calculated worth. The stock's price-to-earnings (P/E) ratio on a trailing twelve months (TTM) basis stands at 13.67x, which is considerably lower than its 5-year median P/E of 22.66x. This discrepancy highlights the potential for growth and value appreciation in the stock moving forward. For more information, you can view the GF Valueā¢.
What Does DECK's GF Scoreā¢ Tell Us?
The GF Scoreā¢ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Scoreā¢ values have been found to generate higher long-term returns (backtested 2006-2021).
| GF Scoreā¢ | 94 |
| Financial Strength | 9/10 |
| Profitability | 10/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 7/10 |
Deckers Outdoor Corp's strengths lie in its exceptional profitability and growth rankings, both rated 10/10, indicating strong operational performance and potential for future expansion. However, its valuation rank of 4/10 suggests that while the stock is undervalued, there may be concerns regarding its current market positioning. For further insights, visit the DECK stock page.
What Are Insiders Doing with DECK Stock?
In the past three months, there has been no insider buying or selling activity reported for Deckers Outdoor Corp, indicating a period of stability among its executives regarding stock transactions.
What This Means for Investors
Based on the available data, Deckers Outdoor Corp presents a compelling case for potential investors with its strong GF Scoreā¢, significant undervaluation according to GF Valueā¢, and robust financial strength. However, the recent slowdown in sales growth for key brands and external pressures such as rising tariffs and shipping costs warrant careful consideration. For the complete analysis, visit the DECK stock page. You can also use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is DECK's GF Scoreā¢?
DECK's GF Scoreā¢ is 94/100, indicating a strong overall performance across key financial metrics.
Is DECK overvalued or undervalued?
DECK is currently undervalued, with a GF Valueā¢ of $152.10 compared to its current price of $96.23, representing a 36.7% discount.
What is DECK's P/E ratio compared to historical?
DECK's P/E ratio on a trailing twelve months (TTM) basis is 13.67x, significantly lower than its 5-year median P/E of 22.66x, suggesting potential for growth.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
