Deckers Outdoor Skyrockets 11.9%, Can This Bullish Surge Sustain Momentum?

Summary
• Deckers Outdoor (DECK) surges 11.9% to $117.46, driven by Q1 earnings and international sales growth
• Hoka and UGG brands post 19.8% and 18.9% revenue increases, respectively
• International sales jumped 49.7%, offsetting 2.8% domestic decline

Deckers Outdoor’s stock has surged over 11% in volatile trading, fueled by a blockbuster Q1 earnings report and record international growth. The footwear giant’s Hoka and UGG brands outperformed expectations, with overseas demand surging despite tariff headwinds. Traders are now dissecting technical indicators and options activity to gauge if this momentum can hold.

Q1 Earnings Beat and International Growth Ignite Bullish Sentiment
Deckers Outdoor’s 11.9% intraday surge stems from a combination of record international sales and outperforming Q1 results. The company reported $965 million in revenue, 16.9% above expectations, with Hoka and UGG brands driving 19.8% and 18.9% year-over-year growth. International sales soared 49.7% to $463 million, nearly offsetting a 2.8% domestic decline. CEO Stefano Caroti’s confidence in long-term brand strength and guidance of $1.50–$1.55 EPS for the current quarter further fueled optimism. However, tariffs are expected to add $185 million in costs this year, creating a mixed narrative.

Apparel Sector Gains Momentum as NIKE Leads
The Apparel, Accessories & Luxury Goods sector saw mixed performance, with NIKE (NKE) rising 1.3% on strong demand for its running and basketball lines. While Deckers Outdoor’s 11.9% jump outpaced sector peers, the broader category remains cautious due to macroeconomic uncertainty. International sales growth for DECK contrasts with domestic challenges, highlighting divergent strategies within the sector. However, DECK’s valuation at a forward P/E of 18 suggests potential for re-rating if global demand persists.

Options Volatility and Technicals Signal Strategic Entry Points
• 200-day MA: 147.07 (well below current price)
• RSI: 47.66 (neutral, not overbought)
• MACD: -0.54 (bearish but near signal line)
• Bollinger Bands: Price trading above upper band at 109.90

Deckers Outdoor’s technicals show a short-term bullish bias amid a long-term bearish trend. Key support levels at $105.54–$108.10 and resistance at $109.90–$116.92 suggest a consolidation phase is likely. Options traders are eyeing the August 1 expiration cycle, with high-liquidity strikes offering leverage. Two top options:

• DECK20250801C118: Call option with 36.47% IV, 47.86% leverage ratio, delta 0.50, theta -0.47, gamma 0.06. Turnover: $393,752. This contract offers balanced leverage with moderate time decay, ideal for a 5% upside scenario where payoff would be $9.39 per share.
• DECK20250801C115: Call option with 32.58% IV, 29.88% leverage ratio, delta 0.70, theta -0.56, gamma 0.06. Turnover: $443,334. Strong delta and gamma make it sensitive to price swings, with a 5% upside payoff of $14.69.

Aggressive bulls should consider DECK20250801C115 into a test of $118.00, while DECK20250801C118 offers lower-risk exposure. Watch for a breakdown below $108.10 to trigger bearish options.

Backtest Deckers Outdoor Stock Performance
The backtest of DECK's performance after a 12% intraday surge shows favorable short-to-medium-term gains, with the 3-Day win rate at 54.82%, the 10-Day win rate at 62.44%, and the 30-Day win rate at 76.40%. The maximum return during the backtest period was 11.68% over 30 days, indicating that DECK tends to maintain upward momentum following a significant intraday surge.

Deckers Outdoor’s Bullish Breakout: What to Watch Now
Deckers Outdoor’s 11.9% surge is fueled by strong Q1 results and international demand, but tariffs and domestic headwinds remain. Technicals suggest a short-term bullish bias but a long-term bearish trend, with key support at $105.54–$108.10. Options traders should monitor the August 1 expiration cycle, with DECK20250801C118 and DECK20250801C115 offering high leverage. Meanwhile, the sector leader NIKE (NKE) rising 1.3% indicates broader apparel strength. Investors should watch for a breakdown below $108.10 or a push above $118.00 to confirm the next directional move.