Deckers Outdoor’s Stock Plummets 50% Despite Strong Financial Gains
Deckers Outdoor (DECK) has faced a turbulent year in the stock market today. Despite reporting strong financial results, its share price has dropped nearly 50% over the past 52 weeks. The decline comes amid concerns over brand performance and broader market pressures.
The company’s latest quarterly report showed solid growth. Net sales rose by 9.1% year-over-year in Q2 of fiscal 2026, while earnings per share (EPS) climbed 14.5%. These figures beat market expectations, reinforcing Deckers’ position as a profitable business with expanding revenue.
Yet investor confidence has weakened. On October 24, DECK stock plunged 15% in a single day after the company released cautious projections for fiscal 2026. Analysts now expect EPS to dip in Q3 before recovering in the following years, with growth forecasts of 7% in 2027 and 12.9% in 2028. The broader decline—nearly 50% over the past year—contrasts sharply with the S&P 500’s 17% gain in the same period. Concerns centre on UGG’s fading popularity, potential saturation in HOKA’s market, and new tariffs affecting costs. Despite this, some analysts remain optimistic. UBS highlights HOKA’s untapped potential, noting its global brand awareness stands at just 20%, far below Nike’s 91%. This gap suggests room for significant sales growth in 2026. Deckers’ current valuation also draws attention. With a price-to-earnings (P/E) ratio of 15—down from historical highs of 20 to 30—many see the stock as undervalued. Strong international sales and a ‘Moderate Buy’ consensus from analysts, with a $109.91 price target, further support this view. The company’s market capitalisation now sits at $15.6 billion. While recent months have seen a slight recovery, the stock remains well below its peak.
Deckers continues to deliver revenue and profit growth, but its share price reflects ongoing uncertainty. Analysts project a mixed short-term outlook, with EPS declines expected in Q3 before a rebound in later years. The long-term potential of HOKA and the stock’s current valuation may still appeal to investors looking beyond temporary challenges.
