Deckers' Resilience Shines as Tariff Tensions Ease and Earnings Outperform Despite 490th Volume Rank

On September 24, 2025, Deckers (NYSE: DECK) closed down 0.71% with a trading volume of $0.20 billion, ranking 490th in the market by daily turnover. The stock has declined 46% from its peak earlier in the year amid concerns over tariffs and slowing growth, but recent earnings and a de-escalation in tariff tensions have sparked renewed interest in its valuation and growth potential.

Deckers reported Q1 revenue of $964.5 million, a 16.9% year-over-year increase, driven by strong international sales growth of 49.7%. Core brands Hoka and Ugg saw revenue rise 19.8% and 18.9%, respectively, with international expansion in Europe and China offsetting weaker domestic performance. The company anticipates mid-teens growth for Hoka and mid-single-digit growth for Ugg in the remainder of the year. Despite a $185 million cost impact from tariffs, its current P/E ratio of 19 remains significantly below the S&P 500’s 27, suggesting undervaluation relative to broader market benchmarks.

Historically, Deckers has demonstrated resilience, with its stock surging over 1,000% in the past decade despite recent volatility. Management highlighted continued market share gains for Hoka, particularly in categories like running and occupational footwear. While tariff-related risks persist, analysts argue the sell-off has been exaggerated, positioning the stock as a potential outperformer if it continues to exceed earnings estimates.

To build this back-test accurately, key parameters include defining the market universe (e.g., U.S. equities or S&P 500), weighting methodology (equal or volume-weighted), execution timing (close-to-close or open-to-close), and frictional costs. The approach will determine whether results are derived from a single ticker or a synthetic index of the top 500 constituents. Once these details are finalized, the back-test will generate performance data based on the specified criteria.