Should You Buy Deckers Brands (DECK) Stock After the Recent Decline?

Deckers Outdoor Corporation (NYSE:DECK) shares have declined over 16.5% after its Q3 2025 earnings report. This is despite the company reporting record revenue and earnings. The stock has been one of the strongest performers in the past five years and gained 547% before the current decline. Here’s what you need to know:

Deckers Outdoor Corporation’s Q3 Earnings Report Was Solid. Guidance Wasn’t

Deckers Brands posted $1.83 billion in Q3 FY2025 revenue, up 17% year-over-year. EPS increased 19% to $3 and surpassed expectations of $2.46 to $2.55.

HOKA sales surged 23.7% to $530 million and UGG sales increased 16.1% to $1.24 billion due to strong holiday sales. International sales have also increased by 28.5% year-over-year. DTC sales grew 17.9% to $1.01 billion (55% of total revenue), with DTC comparable net sales up 18.3%.

Deckers Brands had $2.24 billion in cash on hand.

Regardless, the weak guidance overshadowed all the growth. The revenue outlook was raised to $4.9 billion, but this was below the $4.93 billion consensus estimate, and the EPS guidance being raised to $5.75 to $5.8 still didn’t satisfy Wall Street’s expectations. Analysts instead thought the guidance was overly cautious.

Analyst Sentiment About DECK Stock After Earnings

Sentiment has been noticeably bearish after the guidance disappointed, but analyst price targets have been mixed. Truist cut its target to $225, but Barclays ended up raising its price target to $231 from $190. TD Cowen also maintained its Buy rating and its $244 target.

All of these price targets are higher than where DECK stock currently is. As such, there is a good chance that the stock could deliver gains from here, especially if Deckers Outdoor Corporation beats earnings expectations again next quarter.

That could happen since HOKA’s Sky Flow and Cielo X1 are expected to sustain momentum and international sales have been surging. Plus, it has $640.7 million remaining for share repurchases.

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