Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor has demonstrated strong financial performance, with net sales increasing by 9.1% year-over-year to $1.431 billion, exceeding both market expectations and the company's guidance. Robust growth was evident in the wholesale channel, which rose by 13.4% YoY, contributing significantly to the overall sales performance, particularly from the UGG and HOKA brands. Additionally, the company’s balance sheet reflects a solid position, exiting the fiscal second quarter with $1.414 billion in cash and equivalent assets, and no outstanding debt, further supporting a favorable outlook for the stock.

Deckers Outdoor faces significant challenges that contribute to a negative outlook on its stock. Tariffs are projected to be a substantial $150 million headwind in fiscal year 2026, compounded by expectations of lower operating margins compared to the previous year, which recorded a high of 23.6%. Furthermore, with UGG growth expected to flat-line and Hoka's growth slowing to single-digit percentages, the company's direct-to-consumer revenues have already shown a decline of 2.9% year-over-year, reflecting an overall tough macro environment and revised expectations for modest earnings growth.