Deckers Outdoor (DECK) Stock Forecast & Price Target

Deckers Outdoor has demonstrated robust financial performance with a notable 9.1% year-over-year increase in net sales, totaling $1.431 billion, which exceeded both market expectations and company guidance. The company's strong balance sheet is highlighted by $1.414 billion in cash and cash equivalents, coupled with zero outstanding debt, indicating financial stability and flexibility. Additionally, the wholesale channel has been a significant growth contributor, reflecting a strategic approach that has led to a remarkable 13.4% year-over-year increase in wholesale sales, underscoring the company’s successful market positioning.

Deckers Outdoor is facing significant financial challenges, as anticipated tariffs have now increased to a projected $150 million headwind for fiscal year 2026, impacting profitability. The company expects operating margins to decline this fiscal year from last year's record 23.6% due to slight deleverages in selling, general, and administrative expenses alongside reduced growth projections for its key brands Ugg and Hoka. Additionally, comparable direct-to-consumer revenues declined 2.9% year-over-year, pointing to continued struggles in maintaining sales momentum in a challenging macro environment.