Deckers Outdoor Corporation (NYSE: DECK), the California-based maker of footwear and apparel, recently closed a strong quarter, with analysts and market participants closely monitoring its performance amid industry and market developments.
As of the latest trading session on Friday, October 3, Deckers stock closed at $103.05, down $0.76, or 0.01%, from its previous close. Intraday trading saw the stock open at $104.15, reaching a high of $104.76 and a low of $102.91. Trading volume was recorded at 2,405,910 shares, signaling sustained investor interest in the company.
Despite the slight dip in price, Deckers has outperformed the broader market in recent days, with a 2.59% gain in the previous trading session. Over the past week, the company outpaced the market, although its monthly performance lagged behind the sector, which saw overall gains. This trend highlights short-term optimism among traders even as the longer-term outlook remains mixed.
Deckers recently reported its fiscal first quarter for 2026, delivering results that exceeded expectations. According to figures from Reuters, the company recorded a 17% year-over-year increase in revenue, totaling $964.5 million. This surge was primarily driven by international demand for its flagship Hoka and UGG brands. Hoka sales increased by almost 20%, while UGG witnessed a 19% rise. International growth was particularly robust, with sales up 50% and notable traction in Europe and China, helping to offset a 2.8% decline in U.S. revenues.
In the wake of these quarterly results, Deckers’ shares jumped approximately 11.6%, according to market data. Over the past year, however, the stock price has demonstrated volatility, influenced by factors such as global tariff policies and broader market sentiments.
Deckers is currently forecasting second-quarter net sales between $1.38 billion and $1.42 billion, with earnings per share projected in the range of $1.50 to $1.55. Full-year consensus estimates anticipate earnings of $26.55 per share on revenue of $4.3 billion. This represents growth of approximately 32.6% and 13.7% compared to the previous year, respectively. For the current quarter, the company is expected to report earnings of $2.19 per share on sales of $777.2 million.
Industry watchers are also reviewing changes in analyst estimates, as such adjustments often reflect evolving industry trends and future expectations. Zacks, a prominent investment research firm, indicates that upward revisions to earnings estimates can signal growing analyst confidence in a company’s prospects. Zacks’ proprietary ranking model, which has an established history of exceeding overall market performance, currently rates Deckers as a stock to watch, with its #1 Ranked stocks delivering an average annual return of 25% since 1988.
Valuation measures for Deckers include a forward price-to-earnings (P/E) ratio of 20.25 and a price/earnings-to-growth (PEG) ratio of 1.44. By comparison, the industry average PEG ratio stands at 1.74, and the Shoes and Retail Apparel industry as a whole is valued at an average of 2.21 times earnings, suggesting Deckers is trading at a discount on an earnings growth-adjusted basis.
Deckers is categorized within the Shoes and Retail Apparel industry, which currently holds a Zacks Industry Rank of 44 out of more than 250 industries, placing it within the top 18%. Research from Zacks indicates that the highest-ranked industries tend to outperform those in the bottom half by a factor of two to one.
Despite this momentum, the company faces significant headwinds. Most notably, a newly imposed 20% tariff on imports from Vietnam—a critical manufacturing hub for Deckers—threatens to add approximately $185 million to its cost of goods sold for fiscal 2026. To address this pressure, management has announced plans for incremental price increases across its product lines.
Looking forward, Deckers aims to build on its strong brand portfolio and expanding international presence. As the company navigates industry challenges—including shifting trade dynamics and evolving consumer trends—it will be reporting results that investors and analysts alike will scrutinize for signs of continued potential and resilience. For more information and further analysis, the original reporting can be found at Yahoo Finance and Reuters.