Deckers Outdoor Corporation (DECK) AI Stock Analysis
DECK AI stock analysis summary
AI ResearchDeckers Outdoor Corporation designs and markets footwear and apparel brands, including UGG and Hoka. Over the trailing twelve months, the company generated $5.53B in revenue with a net profit margin of 18.4%. The company maintains a strong liquidity position, reporting $1.13B in net cash as of June 30, 2026.
- Market cap
- $11.67B
- Revenue (TTM)
- $5.53B
- P/E
- 12.1x fwd 10.6x
- 1Y return
- -13.5% S&P 500 16.8%
- Avg. target
- $117.64 37.2% vs last close
Bull case
- Deckers generated $1.10B in free cash flow in FY2026, supporting $1.08B in share buybacks that lowered share count by 16.5% over 5 years.
- The stock trades at a forward P/E of 10.6x and EV/EBITDA of 6.9x, both below the S&P 500 Consumer Cyclical peer medians of 15.7x and 13.8x.
- The company maintains strong financial health with $1.13B in net cash and a current ratio of 2.75 as of June 30, 2026.
Bear case
- Quarterly revenue growth slowed to 5.7% year-over-year in the latest quarter ended June 30, 2026, while quarterly earnings growth slowed to 1.1%.
- DECK stock has lagged broader markets, falling 13.5% over the past year while the S&P 500 gained 16.8%.
- Short interest represents 9.7% of the float, and analysts maintain 11 Hold ratings and 3 Strong Sell ratings.
What Deckers does
Deckers Outdoor Corporation specializes in the design, marketing, and distribution of footwear, apparel, and accessories for casual lifestyle wear and high-performance activities. Its brand portfolio includes UGG for premium lifestyle footwear and apparel, Teva for outdoor sandals and boots, Hoka for performance running shoes and apparel, Sanuk for relaxed casual footwear, and Koolaburra for fashion casual footwear. The company distributes products worldwide through department stores, independent specialty retailers, national chains, and digital platforms, alongside company-operated retail stores and e-commerce websites.
Growth and profitability
Deckers increased annual revenue from $3.15B in FY2022 to $5.47B in FY2026, delivering a 5-year revenue CAGR of 16.5%. Annual net income grew from $451.9M to $1.02B over the same timeframe, while gross margin expanded from 51.0% in FY2022 to 57.7% in FY2026. However, top-line expansion decelerated from 16.3% in FY2025 to 9.8% in FY2026. For the latest quarter ended June 30, 2026, quarterly revenue growth slowed to 5.7% year-over-year, while quarterly earnings growth came in at 1.1%.
Balance sheet and cash flow
As of June 30, 2026, Deckers held $1.60B in cash and short-term investments against $472.3M in total debt, yielding net cash of $1.13B. The company recorded a current ratio of 2.75 and a debt-to-equity ratio of 0.21 on shareholders' equity of $2.30B. During FY2026, operating cash flow reached $1.18B and free cash flow totaled $1.10B, with capital expenditures of $84.6M. Cash was deployed primarily toward share buybacks, which totaled $1.08B in FY2026 and helped reduce the share count by 16.5% over five years.
Valuation and performance
DECK trades at a trailing P/E of 12.1x and a forward P/E of 10.6x, compared to medians of 20.1x and 15.7x for its S&P 500 Consumer Cyclical peers. The stock's EV/EBITDA multiple stands at 6.9x, below the peer median of 13.8x, with a price-to-sales ratio of 2.1x versus the peer median of 2.0x. Over the past year, DECK declined 13.5%, while the S&P 500 (SPY) gained 16.8%. Over a five-year horizon, DECK returned 43.5%, trailing the 83.0% return of the benchmark.
What analysts expect
Wall Street coverage consists of 8 Strong Buy, 5 Buy, 11 Hold, and 3 Strong Sell ratings. The mean price target is $117.64, representing 37.2% upside compared to the last close of $85.71 on October 16, 2026. For the fiscal year ending March 31, 2027, consensus estimates forecast revenue of $5.88B and EPS of $7.53, representing 7.2% EPS growth. Deckers beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.
Key risks and what to watch
- Revenue growth decelerated to 9.8% in FY2026 from 16.3% in FY2025, signaling potential moderation in brand demand.
- The stock is down 17.3% year-to-date and trades 14.6% below its 200-day average.
- Operating margin dropped from 23.6% in FY2025 to 15.2% on a trailing twelve-month basis.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DECK AI stock analysis
This page is an AI-written research summary of Deckers Outdoor Corporation (DECK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DECK income statement, DECK balance sheet, DECK key metrics, DECK analyst forecast, DECK chart. See the DECK stock overview for the latest quote and news.
DECK AI stock analysis FAQ
Does Deckers Outdoor Corporation pay a dividend?
Deckers does not currently pay a dividend, instead using capital for share buybacks totaling $1.08B in FY2026.
What are Deckers' consensus earnings estimates for FY2027?
For the fiscal year ending March 31, 2027, consensus estimates project revenue of $5.88B and EPS of $7.53.
How much net cash does Deckers have on its balance sheet?
As of June 30, 2026, Deckers held $1.60B in cash and short-term investments alongside $472.3M in debt, resulting in $1.13B in net cash.
What is the average analyst price target for DECK?
The mean analyst price target is $117.64, which is 37.2% above the last closing price of $85.71 on October 16, 2026.