Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor's fiscal 2025 performance highlights a strong sales trajectory, with total net sales increasing by 9.1% to $1.431 billion, surpassing market expectations and guidance. The company exited the second quarter with a robust cash position of $1.414 billion and no outstanding debt, indicating strong financial health and operational efficiency. Additionally, the significant year-over-year growth in international sales by 29.3% and a 13.4% increase in wholesale channel sales underscore Deckers' expanding market presence and sales strategy effectiveness.

Deckers Outdoor faces significant financial headwinds that contribute to a negative outlook, with tariffs expected to be a $150 million burden in fiscal year 2026, down from previous estimates of $185 million. The company's operating margin is anticipated to decline from last year's record 23.6%, compounded by a slight deleverage in Selling, General, and Administrative (SG&A) expenses as Deckers continues to invest in its business. Additionally, performance metrics indicate that direct-to-consumer revenues have decreased 2.9% year-over-year, and growth expectations for key brands like UGG and Hoka are increasingly cautious, anticipating flat to low single-digit growth due to a challenging macroeconomic environment.