Deckers Outdoor Reports 29.3% International Sales Growth Amidst Domestic Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 05 2026
0mins
Source: NASDAQ.COM
- Strong International Sales: Deckers Outdoor achieved a remarkable 29.3% year-over-year growth in international net sales in Q2 FY26, despite a 1.7% decline in domestic sales, indicating the company's increasing appeal in global markets and laying the groundwork for future overall revenue growth.
- Profitability Improvement: The company reported an 11% year-over-year increase in net income for the second quarter, with net profit margins nearing 20%, showcasing its strong performance in maintaining profitability despite challenges in the domestic market.
- Attractive Valuation: With a price-to-earnings ratio of 15.4, Deckers Outdoor presents an appealing investment opportunity, especially when compared to Yeti Holdings' higher P/E ratio, despite both companies showing stable revenue and net income growth.
- Market Share Expansion: Sales of Hoka and Ugg both achieved double-digit year-over-year growth in Q2 FY26, indicating that Deckers Outdoor is enhancing its competitiveness in global markets, which could lead to further market share gains in the future.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DECK?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DECK
Wall Street analysts forecast DECK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DECK is 111.50 USD with a low forecast of 81.00 USD and a high forecast of 157.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
9 Buy
9 Hold
3 Sell
Moderate Buy
Current: 99.900
Low
81.00
Averages
111.50
High
157.00
Current: 99.900
Low
81.00
Averages
111.50
High
157.00
About DECK
Deckers Outdoor Corporation designs, markets, and distributes footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. Its segments include UGG brand, HOKA brand and Other brands. The UGG brand segment provides premium footwear, apparel and accessories. The HOKA brand segment’s products include running, trail, hiking, fitness, and lifestyle footwear offerings, as well as select apparel and accessories. Its Other brands segment consists of Teva brand, AHNU brand, and Koolaburra brand. Its Teva brand includes a variety of footwear options, from classic sandals and shoes to boots. The Koolaburra brand is a casual footwear fashion line that uses plush materials. Its AHNU brand’s footwear products fuse high-performance technology for everyday wear. Its portfolio of brands includes UGG, HOKA, Teva, and AHNU. It sells its products through domestic and international retailers and international distributors in its wholesale channel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Deckers Outdoor Shares Surge After Strong Quarterly Results
- Financial Performance Growth: Deckers Outdoor reported a revenue of $1.958 billion for Q3 FY2026, marking a 7.1% year-over-year increase, demonstrating balanced growth across brands and sales channels, thereby enhancing market competitiveness.
- Strong Brand Sales: Sales for HOKA and UGG brands rose by 18.5% and 4.9% to $628.9 million and $1.305 billion, respectively, indicating sustained consumer demand for premium products, which propelled overall performance.
- Improved Profitability: Deckers' operating income increased by 8% to $614.4 million, driven by a high-margin full-price selling strategy, showcasing the company's effectiveness in cost control and profit enhancement.
- Optimistic Outlook: The company raised its full-year sales forecast to between $5.4 billion and $5.425 billion, with expected earnings per share of $6.80 to $6.85, reflecting management's confidence in future growth and market potential.
Continue Reading
Deckers Outdoor Shares Surge After Strong Quarterly Results
- Financial Performance Growth: Deckers Outdoor reported revenue of $1.958 billion for Q3 FY2026, marking a 7.1% year-over-year increase, demonstrating strong performance across multiple brands and sales channels, particularly with HOKA and UGG brands growing 18.5% and 4.9%, respectively, laying a solid foundation for future growth.
- Sales Channel Performance: The company's wholesale sales rose 6% to $864.6 million, while direct-to-consumer sales increased by 8.1% to $1.093 billion, indicating robust sales growth in both domestic and international markets, which further enhances its competitive position.
- Profitability Improvement: Deckers' operating income increased by 8% to $614.4 million, driven by high levels of full-price selling, with strong gross margins from UGG and HOKA brands, showcasing effective strategies in cost control and sales enhancement.
- Raised Full-Year Guidance: The company raised its full-year sales forecast to between $5.4 billion and $5.425 billion, with projected earnings per share of $6.80 to $6.85, reflecting strong confidence in future growth, as the CEO emphasized the commitment to driving profitable growth for its two premium brands.
Continue Reading