Deckers Outdoor (NYSE:DECK) is a global footwear company best known for its popular Ugg and Hoka brands. While Deckers Outdoor's stock price grew over 1,000% in the past decade, it has recently faced challenges. The shares have declined nearly 20% over the last year and are down more than half from their January 2025 peak.
On May 29, 2026, Argus Research lowered its price target for Deckers Outdoor to $128.00. When this new target was published, the stock was trading at $114.35. This adjustment still indicates a potential upside of 11.94% for the company's shares, suggesting some confidence despite the lower target.
This outlook follows a strong financial year for the company. For its full fiscal year 2026, Deckers Outdoor reported a 10% revenue increase to a record $5.47 billion. Diluted earnings per share (EPS), which shows the company's profit per share of stock, also rose 11% to a record $7.02.
The growth is primarily driven by its two largest brands. As highlighted by GuruFocus, the HOKA brand's full-year sales increased by 15.9% to $2.59 billion, while the UGG brand's sales grew 8.2% to $2.74 billion. However, the company's other brands are seeing sales contract, leading to a muted market reaction to the strong earnings report.
Despite record annual results, fourth-quarter operating income fell to $156.70 million from $173.90 million a year ago due to higher operating expenses. To return value to shareholders, Deckers Outdoor repurchased over $1 billion in shares and holds a strong balance sheet with $1.91 billion in cash and no debt.
