Deckers Outdoor Stock Faces Bullish or Bearish Outlook Amid Q1 Results

Deckers Outdoor Corporation, a leading designer and producer of footwear and accessories, has underperformed the broader market over the past year, with a 26.5% decline in stock price compared to the S&P 500 Index's 15.2% returns. However, the stock has gained 11.4% in a single trading session following Q1 results, driven by the solid performance of HOKA and UGG. Analysts expect a marginal 63 bps decline in EPS for fiscal 2026, with a consensus "Moderate Buy" rating and a mean price target of $128.99.

Deckers Outdoor Corporation, a leading designer and producer of footwear and accessories, has experienced a challenging year, with its stock price declining by 26.5% compared to the S&P 500 Index's 15.2% returns. However, the company's stock has shown resilience, gaining 11.4% in a single trading session following the release of its Q1 2025 earnings report. The earnings report highlighted strong performance from the HOKA and UGG brands, driving the stock's rebound.

Q1 2025 Earnings Highlights

Deckers Outdoor reported a solid top-line, with revenues increasing by 16.9% year-over-year (y/y) to $964.54 million. The company's earnings per share (EPS) of $0.93 exceeded analyst expectations by $0.25, with a return on equity of 40.49% and a net margin of 19.42%. The HOKA brand contributed significantly to the growth, with a 19.8% y/y increase in net sales, reaching $653.1 million. The UGG brand also performed well, with an 18.9% y/y growth in net sales, reaching $265.1 million [1].

Analyst Ratings and Price Targets

Following the earnings release, several analysts revised their target prices and ratings for Deckers Outdoor. UBS Group raised its price objective from $144.00 to $158.00, giving the company a "buy" rating. Goldman Sachs Group reduced its target price from $90.00 to $87.00 and set a "sell" rating. Raymond James Financial increased its target price from $123.00 to $137.00 and gave the stock a "strong-buy" rating. On average, analysts have assigned a "Moderate Buy" rating to the stock, with a consensus price target of $128.99 [1].

Investor Activity

Institutional investors and hedge funds have shown interest in Deckers Outdoor, with Jump Financial LLC raising its position by 5,481.7% during the first quarter. The company owned 156,568 shares of Deckers Outdoor worth $17,506,000 at the end of the most recent reporting period. Other institutional investors, such as Mpwm Advisory Solutions LLC, Vega Investment Solutions, and Itau Unibanco Holding S.A., have also recently added to or reduced their stakes in the company [1].

Outlook

Analysts expect a marginal decline in EPS for fiscal 2026, with a consensus of 5.89 EPS. The company's share buyback plan, approved in May 2025, permits the repurchase of up to $2.25 billion in outstanding shares, indicating management's belief in the stock's undervaluation. The launch of the HOKA brand's Mafate 5 shoe, featuring Rocker Integrity Technology, is expected to drive further growth in the company's high-performance segment [2].

References

[1] https://www.marketbeat.com/instant-alerts/filing-jump-financial-llc-has-1751-million-stock-holdings-in-deckers-outdoor-corporation-deck-2025-08-23/
[2] https://www.marketscreener.com/news/deckers-outdoor-sets-stage-for-growth-with-hoka-ce7c50dedb8ff022