Deckers Stock Surges 13% Following Q3 Results

• Deckers Outdoor Corp (NYSE:DECK) was downgraded by Telsey Advisory from "Outperform" to "Market Perform" despite surpassing Q4 revenue and earnings expectations.
• The company reported a Q4 revenue of $1.02 billion and earnings per share of $1, indicating a robust financial performance.
• Deckers projects Q1 revenue between $890 million and $910 million, below market estimates, amidst leadership changes and global trade challenges.

Deckers Outdoor Corp (NYSE:DECK), a prominent player in the footwear and apparel industry known for its HOKA and UGG brands, experienced a rating downgrade from "Outperform" to "Market Perform" by Telsey Advisory on May 23, 2025, as reported by Benzinga. This came after the announcement of DECK's Q4 results, with the stock price at $101.36.

Despite the downgrade, Deckers showcased a strong financial performance in the fourth quarter of fiscal 2025. The company achieved a revenue of $1.02 billion, slightly above the market's expectation of $1.01 billion. Furthermore, its earnings per share were $1, significantly outperforming the forecasted 59 cents per share. This performance underscores Deckers' capability to exceed market expectations.

Stefano Caroti, President and CEO, expressed optimism about the future of Deckers' brands, HOKA and UGG, despite facing global trade challenges. The company also witnessed a leadership transition, with Cynthia Davis taking over as board chair from Michael Devine, who retired after 14 years. This marks a new era in Deckers' leadership.

Looking forward, Deckers anticipates first-quarter revenue to be between $890 million and $910 million, which is below the market estimate of $925.86 million. The company also expects earnings per share to range from 62 cents to 67 cents, below the anticipated 81 cents. Due to macroeconomic uncertainty, Deckers has decided to withhold full-year guidance.

Currently, DECK's stock is priced at $101.53, reflecting a 19.48% decrease with a change of $24.56. The stock has seen fluctuations between $96.12 and $102.87 during the day. Over the past year, DECK reached a high of $223.98 and a low of $93.72. The company's market capitalization stands at approximately $15.41 billion, with a trading volume of 16 million shares.

Deckers Outdoor (NYSE:DECK) shares plunged over 20% intra-day today after the footwear maker issued disappointing guidance for the current quarter, overshadowing its better-than-expected fourth-quarter earnings and revenue.

The company reported Q4 adjusted earnings per share of $1.00, well ahead of the $0.59 analyst estimate. Revenue rose 6.5% year-over-year to $1.02 billion, slightly above the $1.01 billion consensus.

Brand performance was mixed: HOKA grew 10% year-over-year but fell short of the 14.3% consensus, while UGG exceeded expectations with 3.6% growth versus an anticipated decline of nearly 5%.

However, investor sentiment turned sharply negative on the company’s fiscal Q1 2026 forecast. Deckers expects EPS of $0.62–$0.67, missing the $0.79 consensus, and revenue of $890–$910 million, below the $925.3 million estimate.

The weak near-term outlook fueled concerns about slowing momentum in key brands and pressured the stock despite a solid Q4 close to the fiscal year.

Deckers Outdoor (NYSE:DECK) delivered a stellar third-quarter performance, beating Wall Street estimates on both earnings and revenue, yet its stock tumbled 13% in pre-market trading on Friday as investors reacted cautiously despite an improved full-year outlook.

The company reported adjusted earnings per share of $3.00 for the fiscal third quarter of 2025, handily surpassing analyst projections of $2.46. Revenue surged 17% year-over-year to a record $1.83 billion, exceeding the expected $1.7 billion.

Deckers now expects earnings per share between $5.75 and $5.80, topping analyst forecasts of $5.64. The company also lifted its revenue growth outlook to 15% for the fiscal year.

CEO Stefano Caroti emphasized the company’s success in capitalizing on consumer demand, particularly for its flagship UGG brand, which saw significant global traction. The HOKA brand also posted strong growth, reflecting the company’s focus on performance-driven innovation.

While Deckers’ fundamentals appear solid, the steep stock decline suggests investor concerns over valuation or potential future growth trends. Nonetheless, the company remains confident in its momentum heading into the remainder of the fiscal year.

Deckers Outdoor (NYSE:DECK) delivered a stellar third-quarter performance, beating Wall Street estimates on both earnings and revenue, yet its stock tumbled 13% in pre-market trading on Friday as investors reacted cautiously despite an improved full-year outlook.

The company reported adjusted earnings per share of $3.00 for the fiscal third quarter of 2025, handily surpassing analyst projections of $2.46. Revenue surged 17% year-over-year to a record $1.83 billion, exceeding the expected $1.7 billion.

Deckers now expects earnings per share between $5.75 and $5.80, topping analyst forecasts of $5.64. The company also lifted its revenue growth outlook to 15% for the fiscal year.

CEO Stefano Caroti emphasized the company’s success in capitalizing on consumer demand, particularly for its flagship UGG brand, which saw significant global traction. The HOKA brand also posted strong growth, reflecting the company’s focus on performance-driven innovation.

While Deckers’ fundamentals appear solid, the steep stock decline suggests investor concerns over valuation or potential future growth trends. Nonetheless, the company remains confident in its momentum heading into the remainder of the fiscal year.

Evercore ISI analysts increased their price target for Deckers Outdoor (NYSE:DECK) to $235 from $195, maintaining an Outperform rating on the stock. The revised outlook reflects strong growth prospects driven by sustained demand for the company’s flagship brands, HOKA and UGG, in both domestic and international markets.

Deckers continues to stand out as a top-quality growth story in the softlines sector heading into 2025. Market checks indicate robust order volumes for both HOKA and UGG, with no signs of waning consumer enthusiasm. While the broader retail environment has seen heightened promotional activity, HOKA has maintained its premium positioning with limited discounts, and UGG has outperformed the overall boot category, despite unseasonably warm weather creating challenges for competitors.

According to the analysts, the ongoing shift in product mix is expected to provide margin expansion tailwinds, supporting Deckers' ability to deliver mid-teens earnings per share growth annually over the next two years. The analysts’ 2025 EPS forecast remains unchanged, but estimates for 2026 and 2027 have been raised by 3% and 4%, respectively, positioning them above consensus by 3%.

Evercore ISI analysts increased their price target for Deckers Outdoor (NYSE:DECK) to $235 from $195, maintaining an Outperform rating on the stock. The revised outlook reflects strong growth prospects driven by sustained demand for the company’s flagship brands, HOKA and UGG, in both domestic and international markets.

Deckers continues to stand out as a top-quality growth story in the softlines sector heading into 2025. Market checks indicate robust order volumes for both HOKA and UGG, with no signs of waning consumer enthusiasm. While the broader retail environment has seen heightened promotional activity, HOKA has maintained its premium positioning with limited discounts, and UGG has outperformed the overall boot category, despite unseasonably warm weather creating challenges for competitors.

According to the analysts, the ongoing shift in product mix is expected to provide margin expansion tailwinds, supporting Deckers' ability to deliver mid-teens earnings per share growth annually over the next two years. The analysts’ 2025 EPS forecast remains unchanged, but estimates for 2026 and 2027 have been raised by 3% and 4%, respectively, positioning them above consensus by 3%.

Deckers (NYSE:DECK) shares surged more than 11% intra-day today following the release of impressive second-quarter earnings that outpaced analyst expectations. The footwear company, known for its UGG and HOKA brands, also raised its full-year guidance, fueling investor optimism.

For the quarter, Deckers reported adjusted earnings per share of $1.59, surpassing the expected $1.23. Revenue climbed 20.1% year-over-year to $1.31 billion, exceeding the $1.2 billion forecast.

The HOKA brand led the charge, with sales soaring 34.7% to $570.9 million, while the UGG brand saw a solid 13% increase, reaching $689.9 million. Direct-to-consumer net sales rose 19.9% to $397.7 million, with comparable sales up 17%, reflecting robust demand across channels.

Deckers’ gross margin improved to 55.9%, up from 53.4% in the same period last year, driven by enhanced pricing strategies and a favorable product mix.

Looking forward, Deckers adjusted its fiscal 2025 outlook, now expecting revenue to grow approximately 12% to $4.8 billion, slightly below the $4.82 billion consensus. The company raised its EPS forecast to a range of $5.15 to $5.25, which is below the analysts’ expectations of $5.35.