Deckers OutdoorFRA:DO2 +1.61%99 Operating Margin % is 14.00% as of Mar. 2026, which is 22% below its 10-year median of 17.97. GuruFocus rates FRA:DO2 with a GF Score™ of 99/100 and a GF Value™ of €131.49 (Significantly Undervalued). Among 1,042 Manufacturing - Apparel & Accessories companies, Deckers Outdoor ranks better than 97.22% on this metric.
Deckers Outdoor Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Deckers Outdoor's Operating Margin % or its related term are showing as below:
FRA:DO2'
s Operating Margin % Range Over the Past 10 Years
Min: -0.11 Med: 17.97 Max: 23.65
Current: 23.08
FRA:DO2's Operating Margin % is ranked better than 97.22% of 1042
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.085
vs FRA:DO2: 23.08
Deckers Outdoor's 5-Year Average Operating Margin % Growth Rate was 5.20% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Deckers Outdoor Operating Margin % Related Terms
Deckers Outdoor Operating Margin % Historical Data
* Premium members only.
The historical data trend for Deckers Outdoor's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:DO2 vs ONON, BIRK, CROX: Operating Margin % Comparison
For the Footwear & Accessories subindustry, Deckers Outdoor's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Deckers Outdoor Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Deckers Outdoor's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Deckers Outdoor's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Deckers Outdoor's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Deckers Outdoor (FRA:DO2) has a Operating Margin % of 14.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Deckers Outdoor and its competitors. This is 22% below median its historical median of 17.97. According to the industry distribution chart, Deckers Outdoor ranks #29 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 2.8%.
Is Deckers Outdoor's Operating Margin % too high?
Deckers Outdoor's current Operating Margin % of 14.00% is 22% below median its 10-year median of 17.97. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.09. Deckers Outdoor's value of 14.00% is 242.7% above this industry median. Based on the distribution chart, Deckers Outdoor ranks #29 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Deckers Outdoor has a GF Score™ of 99/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Deckers Outdoor's Operating Margin % compare to ONON and BIRK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Deckers Outdoor ranks #29 out of 1042 companies for Operating Margin %. This places Deckers Outdoor in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.09. Deckers Outdoor's value of 14.00% is 242.7% above this benchmark. While the company's 10-year median is 17.97 vs. the industry median of 4.09, Deckers Outdoor has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.09, based on 1,042 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deckers Outdoor's current Operating Margin % of 14.00% is 242.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Deckers Outdoor and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deckers Outdoor's current Operating Margin % is 14.00%, which is 22% below median its own 10-year median of 17.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deckers Outdoor stock overvalued right now?
Based on GuruFocus' analysis, Deckers Outdoor (FRA:DO2) is currently considered Significantly Undervalued. The stock's GF Value™ is €131.49, compared to a current price of €91.14 — trading 30.7% below its estimated fair value. The current Operating Margin % is 14.00%, which is 22% below median its 10-year median of 17.97 and 242.7% above the Manufacturing - Apparel & Accessories industry median of 4.09. Deckers Outdoor's overall GF Score™ is 99/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Deckers Outdoor (FRA:DO2), the current Operating Margin % is 14.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deckers Outdoor (FRA:DO2) Overvalued in 2026?
Based on GuruFocus' analysis, Deckers Outdoor stock appears to be undervalued.
The current stock price of €91.14 is trading 30.7% below its estimated GF Value™ of €131.49.
GuruFocus considers Deckers Outdoor to be Significantly Undervalued.
Key valuation signals for FRA:DO2:
Operating Margin %: 14.00% (22% below median its 10-year median of 17.97)
GF Value™: €131.49 vs. price of €91.14 (30.7% below fair value)
Industry Position: 242.7% above the Manufacturing - Apparel & Accessories median (#29 of 1042)
No single metric tells the full story. See the FRA:DO2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1973, California-based Deckers designs and sells casual and performance footwear, apparel, and accessories. In fiscal 2026, Ugg and Hoka accounted for 50% and 47% of total sales, respectively. The firm also markets a niche sandal brand Teva. Deckers produces most of its sales through wholesale partnerships but also operates e-commerce in more than 50 countries and has more than 200 company-operated stores, about half of which are outlets. The firm generated 58% of its fiscal 2026 sales in the United States.
99GF Score
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