Deckers Outdoor Corporation (DECK)

Over the past six months, Deckers Outdoor Corp. (DECK) stock has trended down by 21.43%. Recent events impacting the stock include strong Q2 FY2026 earnings with diluted earnings per share increasing by 14% and revenue growing by 9% year-over-year, exceeding analyst expectations. Despite beating earnings and revenue estimates, the stock fell due to weaker full-year revenue guidance, a spike in inventory, and a contraction in sales from smaller brands and the direct-to-consumer channel. Following the Q2 earnings, Wells Fargo & Company lowered its price target for DECK, while Truist Financial raised its price target. Management noted that unmitigated tariff impacts on fiscal year 2026 are expected to be approximately $150 million, with mitigation efforts offsetting $75 million to $95 million.

Demand for Deckers Outdoor Corp.'s products, particularly UGG, exhibits seasonality, with higher demand during colder months. An early and severe winter could provide a "seasonal tailwind" for UGG sales, suggesting that a significant portion of UGG's sales are concentrated in the latter half of the calendar year.

Deckers Outdoor Corp. is a global leader in footwear, apparel, and accessories, operating in the Consumer Cyclical sector. Its portfolio includes UGG, known for luxury lifestyle footwear and accounting for 51% of fiscal 2025 sales; HOKA ONE ONE (HOKA), a performance footwear brand representing 45% of fiscal 2025 sales; Teva, specializing in outdoor footwear; Koolaburra by UGG, a more affordable extension of UGG; Sanuk, focusing on casual footwear; and Ahnu, offering versatile outdoor footwear. Deckers generates most of its sales through wholesale partnerships (57.3%) but also operates a direct-to-consumer business (42.7%).

Deckers Outdoor Corp., headquartered in Goleta, California, has a global presence with e-commerce in over 50 countries and approximately 180 company-operated stores. In fiscal 2025, 64% of its sales were generated in the United States. The company has a strong presence across North America, Europe, and Asia-Pacific regions, with manufacturing locations in China and Vietnam.

Deckers Outdoor Corp. has maintained a strong brand reputation, particularly with UGG and HOKA, with HOKA gaining market share in the U.S. road-running category. Deckers was also recognized on Forbes' "Most Trusted Companies in America (2025)" list. However, the company has faced challenges due to U.S. consumer sentiment and a preference for multi-brand shopping experiences. Analysts noted that UGG and HOKA were not performing as well due to elevated competition and macro uncertainty.

Deckers Outdoor Corp. is predominantly owned by institutional shareholders, who hold approximately 98.17% of the company's shares, while individual insiders own about 2.06%. Major institutional owners include Fmr Llc, Vanguard Group Inc, BlackRock, Inc., State Street Corp, Geode Capital Management, Llc, Invesco Ltd., Morgan Stanley, Norges Bank, Price T Rowe Associates Inc /Md/, and Federated Hermes, Inc.