Updated Aug 14 at 10:46am ET.
Follow Deckers Outdoor to never miss an important update.
Total retail sales in the US fell by 0.6 percent last month, a sharper drop than the small growth seen in June. This suggests that consumers are becoming more cautious with their spending as higher prices and borrowing costs weigh on household budgets.
For a company like Deckers, which sells premium footwear through HOKA and UGG, a general pullback in spending is worth watching. While its brands have shown they can sell at full price even when rivals struggle, a broader slowdown in retail could make it harder to maintain the high growth rates that have powered the stock.
Source: WSJ
Barclays analysts lowered their price target for the stock from $141 to $133. This change follows the company's first-quarter report, where strong sales from HOKA and UGG were not enough to prevent the stock from falling.
A price target is what an analyst thinks a stock will be worth in the future. Even with the lower target, the firm kept an overweight rating, which means they still expect the stock to perform better than the average company in the market. This suggests the move is a minor adjustment to expectations rather than a change in their view of the business.
Source: Barclays
Deckers reported a strong start to its fiscal year, with revenue rising about 6 percent to reach 1.02 billion dollars. This is the first time the company has crossed the billion-dollar mark in its first quarter, which is usually a slower period for footwear. Earnings per share came in at $0.94, beating the $0.88 that analysts expected.
The growth was led by HOKA and UGG, which are finding more customers globally. Management felt confident enough in this momentum to raise their profit forecast for the full year. They also spent 338 million dollars to buy back their own shares, a move that reduces the total number of shares available and can make each remaining share more valuable over time. For long-term owners, the core story remains intact: HOKA is successfully moving from a niche running shoe into a major global brand.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The UGG brand is launching a new campaign for the back-to-school season, featuring a collection that includes the debut of the Ultra Mini Bailey Bow. The marketing focuses on self-expression through arts and music to connect with younger customers. While a single marketing campaign rarely changes the value of a company, it shows how Deckers is working to keep the UGG brand relevant. Maintaining this premium status is key to the company's ability to sell shoes at full price without having to use the heavy discounts that hurt profits at other footwear brands.
Source: Business Wire
Teva, one of the smaller brands in the Deckers portfolio, unveiled its Fall 2026 collection. The new lineup includes its first co-created product with its 'Bureau of Adventure' group, along with updates to several of its existing shoe styles. Although HOKA and UGG drive the vast majority of profits for Deckers, these updates show the company is still investing in its smaller brands. Keeping Teva fresh helps diversify the business beyond its two main winners, even if it doesn't move the needle as much as a new HOKA launch would.
Source: Business Wire
Analysts adjusted their price targets following the company's July 24 earnings report, which showed strong quarterly results but disappointing future guidance. Most analysts remain positive, with 26 of 56 rating it a buy and an average target suggesting 29% upside.
Management has a perfect record of beating expectations over the last two years. They consistently set a bar they can clear, which makes their financial forecasts very reliable.
| Expectation | |
|---|---|
| EPS | $1.80 |
| Revenue | $1.51B |
Schwab Network · Video · Jul 24
Seeking Alpha · Opinion · Jul 24
Seeking Alpha · Opinion · Jul 23
WSJ · Jul 23
Business Wire · Press release · Jul 23
Schaeffers Research · Jul 22
Follow Deckers Outdoor to get the latest and most important updates.
Follow DECK