How Investors Are Reacting To Deckers Outdoor (DECK) Raising Guidance and Expanding Buybacks

• Deckers Outdoor Corporation recently announced its second quarter and six-month results for 2025, reporting year-over-year increases in sales and net income, alongside raised full-year earnings guidance and an update on its ongoing share repurchase program.
• The company’s expanded buyback activity and stronger earnings performance highlight management's emphasis on shareholder returns and operational execution.
• Now, we’ll explore how Deckers Outdoor’s increased full-year guidance impacts the company's broader investment story.

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Deckers Outdoor Investment Narrative Recap

To be a shareholder in Deckers Outdoor, one needs to trust in the ongoing global appeal and margin strength of its flagship UGG and HOKA brands, as well as the company’s capability to execute strong direct-to-consumer strategies. The recent earnings beat and raised guidance bolster confidence in the company’s revenue and profit targets, but do not materially shift short-term risks such as gross margin pressure from a more promotional retail environment. The most relevant recent announcement is Deckers' upgraded full-year earnings guidance, now forecasting net sales of approximately US$5.35 billion and diluted EPS between US$6.30 and US$6.39. This outlook supports optimism around continued brand momentum, yet it will be tested by ongoing challenges of maintaining high margins as consumer demand shifts and the market becomes more price competitive. However, investors should be aware that despite strong guidance, promotional activity could still pressure margins during the next few quarters...

Read the full narrative on Deckers Outdoor (it's free!)

Deckers Outdoor is projected to reach $6.5 billion in revenue and $1.1 billion in earnings by 2028. This outlook assumes annual revenue growth of 8.5% and an earnings increase of about $110 million from the current earnings of $989.7 million.

Uncover how Deckers Outdoor's forecasts yield a $114.36 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Twenty-one individual members of the Simply Wall St Community estimate Deckers' fair value between US$74.68 and US$158 per share. Many see upside, yet the possibility of lower gross margins remains a key challenge for the company’s future performance.

Explore 21 other fair value estimates on Deckers Outdoor - why the stock might be worth 9% less than the current price!

Build Your Own Deckers Outdoor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Deckers Outdoor research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Deckers Outdoor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Deckers Outdoor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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