Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor demonstrated a strong financial performance in fiscal 2025, with net sales increasing by 9.1% to $1.431 billion, surpassing both market expectations and company guidance. The company showcased significant growth in its wholesale channel, which rose by 13.4% year-over-year, fueled by earlier shipment timings and robust demand for key brands UGG and HOKA. Additionally, Deckers exited the fiscal second quarter with a solid balance sheet, holding $1.414 billion in cash and cash equivalents, while maintaining a debt-free status, enhancing overall financial stability.

Deckers Outdoor is facing substantial financial headwinds, with projected tariffs expected to be a $150 million challenge in FY26, representing a decrease from prior estimates but still significant. The company anticipates a decline in operating margin for the current fiscal year, following a record operating margin of 23.6% in the previous year, as selling, general, and administrative expenses (SG&A) are expected to deleverage slightly. Moreover, the outlook for sales growth is tempered, with expectations for UGG to potentially flatline and Hoka's growth slowing to single digits, compounded by a 2.9% year-over-year drop in direct-to-consumer revenues.