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Deckers Outdoor Corporation (NYSE:DECK) Faces Market Challenges Despite Strong Brand Performance

  • Deckers Outdoor Corporation (NYSE:DECK) has received a new price target from Telsey Advisory, suggesting a potential increase of approximately 16.92%.
  • The company reported a 9.1% year-over-year increase in revenue and earnings per share of $1.82, surpassing Wall Street's expectations.
  • Despite strong brand performance, DECK's full-year guidance fell short of analysts' expectations, leading to a significant drop in its share price.

Deckers Outdoor Corporation (NYSE:DECK), a well-known footwear and apparel company recognized for its popular brands like UGG and HOKA, operates in a competitive market, facing rivals such as Nike and Adidas. On October 24, 2025, Dana Telsey from Telsey Advisory set a new price target for DECK at $105, suggesting a potential increase of approximately 16.92% from its current price of $89.81.

Despite this optimistic outlook, DECK has faced challenges. Jim Cramer, a renowned investor, described the stock as "overly hated" due to a decline following cautious future guidance. The company surpassed Wall Street's expectations for its second-quarter earnings, reporting revenue of $1.43 billion, a 9.1% year-over-year increase, and earnings per share of $1.82, exceeding the consensus estimate of $1.58.

However, DECK's full-year guidance fell short of analysts' expectations, leading to a significant drop in its share price, falling over 14% in early trading. The company expressed concerns about macroeconomic risks, particularly tariffs-driven price increases, which could impact future sales. Despite strong brand-level performance, with HOKA sales rising 11.1% and UGG sales increasing 10.1%, the company's full-year revenue midpoint of $5.35 billion is approximately 2% below analyst expectations.

International sales showed a robust 29.3% increase, offsetting a slight 1.7% decline in domestic sales. However, concerns remain about the performance of the UGG line, which may be contributing to the stock's downturn. DECK's stock is currently priced at $89.40, experiencing a decrease of 12.81% with a drop of $13.14. The stock has fluctuated between a low of $86.83 and a high of $90.95 today, with a market capitalization of approximately $13.26 billion.