With a market cap of $16.5 billion, Deckers Outdoor Corporation (DECK) designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. Based in Goleta, California, the company owns a portfolio of brands including UGG, HOKA, Teva, Sanuk, Koolaburra, and AHNU.

Shares of DECK have significantly lagged behind the broader market over the past 52 weeks. DECK has dropped 36.7% over this period, while the broader S&P 500 Index ($SPX) has gained 11.6%. Moreover, shares of DECK are down 46.4% on a YTD basis, compared to SPX’s marginal rise.

Zooming in further, Deckers Outdoor has also underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 23.5% surge over the past 52 weeks and 3.3% decline on a YTD basis.

Shares of DECK tumbled 19.9% following the release of its mixed Q4 2025 results on May 22. The company reported revenue of $1 billion, up 6.5% year-over-year, surpassing the consensus estimate of $988.6 million. The increase was primarily driven by higher net sales from the UGG and HOKA brands. Its EPS came in at $1, marking a 22% rise from the prior-year quarter and exceeding analysts’ expectations by 75.4%.

However, the stock declined sharply due to disappointing guidance for Q1 2026. The company expects net sales to be in the range of $890 million to $910 million, and EPS to fall between $0.62 and $0.67.

For the fiscal year ending in March 2026, analysts expect DECK’s EPS to decline 3.6% year-over-year to $6.10. However, the company's earnings surprise history is solid. It beat the consensus estimates in the past four quarters. 

Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.”

This configuration is slightly less bullish than three months ago, with 10 “Strong Buy” ratings on the stock.

On May 23, UBS analyst Jay Sole raised DECK's price target to $169 while maintaining a “Buy” rating on the stock. 

As of writing, Deckers Outdoor is trading below the mean price target of $135.61. The Street-high price target of $234 implies a potential upside of a staggering 114.8% from current price levels.