Added to YB: 2026-08-27
Pitch date: 2026-08-24
DECK [neutral]
Deckers Outdoor Corporation
-0.04%
current return
Author Info
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Company Info
Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally.
Market Cap
$12.5B
Pitch Price
$89.51
Price Target
N/A
Dividend
N/A
EV/EBITDA
7.71
P/E
12.98
EV/Sales
2.06
Sector
Textiles, Apparel and Luxury Goods
Category
value
Deckers Gets Marked Down
DECK (earnings): Q1 FY27 (rpt Jul 23): EPS $0.94, +1.1% y/y, ~8% above $0.87 consensus, but a manufactured beat — net income fell 6.6%, buybacks flipped it positive. Rev $1,019.5M (+5.7%, first >$1B June qtr), GM 56.4% (+60bp), but SG&A +12.7% drove op income -6.0% and op margin -190bp to 15.2%. Growth halved: HOKA +7.7% (vs ~20% prior), UGG +4.9% (vs ~19%); HOKA added ~$50M sales, near-zero incremental profit. Mgmt raised FY27 EPS guide to $7.35-7.50 on H2 cost discipline, but stock -8% on soft Q2 guide (rev ~+5%, EPS $1.73-1.78) and tariff assumption up to 12.5% (from 10%); FY27 op margin guided 21.5% vs 23.1%. At ~$91 = ~12.3x FY27 guide, ~9% FCF yield, ~40% ROE, ~$1.6B net cash/zero debt; buyback ~38% of cap (~$1.35B annualized). Upside item: ~$120M unbooked IEEPA tariff refund clawback outside guidance. Base $105-115 (~15-26%), Street avg $123. Thesis: cheap compounder w/ balance-sheet floor (~$68 washout).
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