Download PDF

1. Company Snapshot

1.a. Company Description

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities.The company offers premium footwear, apparel, and accessories under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and relaxed casual shoes and sandals under the Sanuk brand name.It also provides footwear and apparel for ultra-runners and athletes under the Hoka brand name; and fashion casual footwear using other plush materials under the Koolaburra brand.


The company sells its products through department stores, domestic independent action sports and outdoor specialty footwear retailers, and larger national retail chains, as well as online retailers.It also sells its products directly to consumers through its retail stores and e-commerce websites, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia-Pacific, Canada, Latin America, and internationally.As of March 31, 2022, it had 149 retail stores, including 75 concept stores and 74 outlet stores worldwide.


The company was founded in 1973 and is headquartered in Goleta, California.

Show Full description

1.b. Last Insights on DECK

Deckers Outdoor Corporation faced negative drivers, including decelerating US and direct-to-consumer (DTC) growth, raising concerns about future margin pressure. The company's slow FY2026 guidance and DTC weakness weighed on growth estimates. Additionally, operational deleverage and cautious US consumer behavior threatened margins, despite international and wholesale channels showing strength. Furthermore, tariff-driven price increases posed a risk to sales. A modest buy recommendation was issued by some analysts, citing the company's efficient and profitable position in the sneaker and footwear industry.

1.c. Company Highlights

2. Deckers Brands Posts Strong Q2 Results, Raises FY2026 Outlook

Deckers Brands reported outstanding second-quarter results, with revenue growing 9% to $1.43 billion and diluted earnings per share increasing 14% to $1.82, beating analyst estimates of $1.58. The company's gross margin for the second quarter was 56.2%, up 30 basis points from last year, driven by strong wholesale growth across its HOKA and UGG brands. HOKA revenue rose 11% to $446 million, while UGG revenue grew 10% to $927 million, with international regions remaining the driving force behind the growth, increasing 38% versus last year.

Publication Date: Oct -27

📋 Highlights
  • Revenue & EPS Growth:: Q2 revenue rose 9% to $1.43 billion, with diluted EPS up 14% to $1.82.
  • Brand Performance:: HOKA revenue increased 11% to $446 million, while UGG revenue grew 10% to $927 million.
  • International Growth:: International regions drove 38% revenue growth for UGG and HOKA, outpacing U.S. growth.
  • Full-Year 2026 Outlook:: Revenue expected at $5.35 billion, with EPS guidance of $6.30–$6.39 and 15% growth.
  • Tariff Impact:: Unmitigated tariff pressure of $150 million in 2026, partially offset by $75–$95 million in mitigation efforts.

Brand Performance

HOKA is gaining market share in the athletic footwear category, and UGG is seeing strong consumer response to newer products. The company will focus on driving healthy sell-through, leveraging its DTC loyalty program, and investing in marketing to build global HOKA awareness. The strong financial profile will also allow the company to invest in capabilities it's building.

Guidance and Outlook

The company raised its fiscal year 2026 outlook, with expected revenue growth of 10% to $2.65 billion and diluted earnings per share growth of 15% to $31.50. For the full year fiscal 2026, the company expects total company revenue of approximately $5.35 billion, with HOKA expected to increase by a low teens percentage versus last year and UGG growing in the range of a low to mid-single-digit percentage. The guidance assumes a blended growth rate of approximately 9% from the 2 largest brands, UGG and HOKA.

Valuation and Metrics

With a P/E Ratio of 12.7, P/B Ratio of 5.23, and an ROE of 40.31%, the company's valuation metrics indicate a strong performance. The company's guidance for the back half of the year takes into consideration current trends and assumes some caution due to economic signals and inflation. The expected operating margin is in the low 20% range for the back half of the year, driven by tariff-related pressures.

Tariff Impact and Mitigation

The company expects the unmitigated tariff impact on fiscal year 2026 to be approximately $150 million and estimates that mitigation efforts will offset approximately $75 million to $95 million of this pressure. The company is operating in a disciplined approach to mitigate some of the tariff impacts and is focused on building brands for the long term.

3. NewsRoom

Card image cap

Breakfast News: SNOW's Growth Outlook Cools

Dec -04

Source: fool.com

Card image cap

Edgestream Partners L.P. Has $3.57 Million Stake in Deckers Outdoor Corporation $DECK

Dec -04

Source: defenseworld.net

Card image cap

Charles Schwab Investment Management Inc. Acquires 31,356 Shares of Deckers Outdoor Corporation $DECK

Nov -29

Source: defenseworld.net

Card image cap

First Look: CME outage, Black Friday shifts, AI job impact

Nov -28

Source: gurufocus.com

Card image cap

Aspex Management HK Ltd Trims Stake in Deckers Outdoor Corporation $DECK

Nov -27

Source: defenseworld.net

Card image cap

Arrowpoint Investment Partners Singapore Pte. Ltd. Acquires New Position in Deckers Outdoor Corporation $DECK

Nov -27

Source: defenseworld.net

Card image cap

GAP vs. DECK: Which Stock Should Value Investors Buy Now?

Nov -25

Source: zacks.com

Card image cap

AXQ Capital LP Has $261,000 Stock Position in Deckers Outdoor Corporation $DECK

Nov -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.95%)

6. Segments

Direct-to-Consumer

Expected Growth: 10%

Deckers Outdoor Corporation's Direct-to-Consumer segment growth is driven by strong e-commerce capabilities, effective digital marketing, and strategic brand investments. The company's focus on omnichannel retailing, product innovation, and customer experience enhancements also contribute to its 10% growth. Additionally, Deckers' ability to leverage its brands' strong heritage and authenticity resonates with consumers, further fueling growth.

UGG

Expected Growth: 11%

UGG's 11% growth driven by strong brand recognition, increasing demand for comfort footwear, successful marketing campaigns, and strategic expansion into new markets, particularly in Asia. Additionally, the brand's focus on sustainability and digital transformation has resonated with consumers, contributing to its growth momentum.

HOKA

Expected Growth: 13%

HOKA's 13% growth is driven by increasing popularity of trail running, strategic partnerships with running influencers, and expansion into new markets. Additionally, Deckers' focus on digital marketing, e-commerce growth, and premium product offerings have contributed to the brand's success. Furthermore, HOKA's innovative products, such as max cushioning and rocker technology, have resonated with consumers seeking high-performance running shoes.

Teva

Expected Growth: 9%

Teva's 9% growth is driven by increasing demand for outdoor activities, expanding distribution channels, and strategic partnerships. Additionally, the brand's focus on sustainability and innovative products, such as the Terra-Float and Ember collections, resonates with environmentally conscious consumers, contributing to its growth momentum.

Other Brands Wholesale

Expected Growth: 8%

Strong demand for outdoor gear, increasing popularity of hiking and outdoor activities, successful product innovation, and strategic partnerships with key retailers drive the 8% growth of Other Brands Wholesale from Deckers Outdoor Corporation. Additionally, effective inventory management and optimized supply chain operations contribute to the segment's growth.

Sanuk

Expected Growth: 7%

Sanuk's 7% growth is driven by increasing demand for comfortable and casual footwear, particularly among younger generations. Strong online presence, strategic partnerships, and effective marketing campaigns have contributed to the brand's expansion. Additionally, Deckers Outdoor Corporation's focus on product innovation, quality, and sustainability has enhanced Sanuk's appeal, attracting a wider customer base and driving sales growth.

7. Detailed Products

UGG

Luxury footwear, apparel, and accessories for men, women, and kids, known for their sheepskin boots and comfort-focused designs.

HOKA ONE ONE

Max cushioning and comfortable running shoes for runners and outdoor enthusiasts, offering superior comfort and performance.

Teva

Outdoor footwear and sandals for water sports, hiking, and casual wear, emphasizing comfort, durability, and versatility.

Sanuk

Comfortable and casual footwear, including sandals, shoes, and boots, for relaxed, everyday wear.

Ahnu

Outdoor footwear and apparel for hiking, trail running, and outdoor enthusiasts, focusing on comfort, support, and durability.

8. Deckers Outdoor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Deckers Outdoor Corporation faces moderate threat from substitutes, as customers have limited alternatives for high-quality outdoor footwear and apparel. However, the company's focus on innovation and sustainability helps to differentiate its products and reduce the threat of substitutes.

Bargaining Power Of Customers

Deckers Outdoor Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and high-quality products reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

Deckers Outdoor Corporation relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its ability to negotiate prices help to mitigate this risk.

Threat Of New Entrants

The outdoor footwear and apparel industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This makes it difficult for new entrants to compete with established players like Deckers Outdoor Corporation.

Intensity Of Rivalry

The outdoor footwear and apparel industry is highly competitive, with many established players competing for market share. Deckers Outdoor Corporation faces intense rivalry from companies like VF Corporation, Columbia Sportswear, and Wolverine World Wide.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.24%
Debt Cost 3.95%
Equity Weight 88.76%
Equity Cost 9.18%
WACC 8.59%
Leverage 12.66%

11. Quality Control: Deckers Outdoor Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Deckers

A-Score: 4.6/10

Value: 5.3

Growth: 9.1

Quality: 8.6

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Steven Madden

A-Score: 4.3/10

Value: 3.9

Growth: 5.2

Quality: 5.4

Yield: 5.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Nike

A-Score: 4.2/10

Value: 2.0

Growth: 3.9

Quality: 6.1

Yield: 4.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

99.7$

Current Price

99.7$

Potential

-0.00%

Expected Cash-Flows