As of October 16, 2026
1. Company Overview
Deckers Outdoor Corporation (DECK) is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance athletic activities.
- HOKA: Premier high-growth performance footwear brand disrupting global running, trail, walking, and outdoor athletic categories.
- UGG: Iconic global lifestyle brand recognized for premium sheepskin footwear, boots, fashion apparel, and home products.
- Teva & Other Brands: Specialized outdoor sandal and casual footwear portfolios including Teva, Sanuk, and Koolaburra.
- Exchange: NYSE | Sector: Consumer Cyclical | Industry: Footwear & Accessories / Apparel
- Headquarters: Goleta, CA | CEO: Stefano Caroti
2. Key Stock & Valuation Snapshot
| Metric | Value | Reference / Context |
| Stock Price | $85.71 | 52-Week Range: $77.20 – $122.29 |
| Market Capitalization | $11.46 Billion | Premier global athletic and lifestyle footwear innovator |
| Trailing P/E (TTM) | 12.1x | Trades at a notable discount to 5-year historical average (~21.4x) |
| Price / Book (P/B) | 4.9x | Reflects high return on equity and asset-light business model |
| Diluted EPS (Q1 FY26) | $0.94 GAAP | Full-Year TTM EPS: $7.05 (+10.8% YoY post 6-for-1 stock split) |
| Dividend Yield (Forward) | N/A (0.00%) | No regular dividend; 100% capital return focused on share buybacks |
3. Financial Performance (Q1 & TTM FY2026 Summary)
Reported in July 2026, Deckers Outdoor delivered solid Q1 FY26 financial results, underpinned by sustained international demand for HOKA and direct-to-consumer expansion for UGG.
- Total Operating Revenue: $964.5 Million in Q1 FY26 (+16.9% YoY); Trailing Twelve-Month (TTM) Revenue reached $5.50 Billion (+9.8% YoY).
- Net Annual Profit: TTM Net Income exceeded $960 Million; Q1 Net Income reached $139 Million.
- Operating Margin: 21.8% TTM operating margin; Q1 FY26 Gross Margin remained elevated at 56.4%.
- Operating Cash Flow: $780+ Million TTM, supported by disciplined inventory management and outsourced manufacturing.
- Segment Breakdown: HOKA Net Sales $545+ Million (+20% YoY); UGG Net Sales $220+ Million (+14% YoY); Other Brands $195 Million.
4. Quality Metrics Dashboard
| Metric Category | DECK Performance | Target Benchmark | Pass / Fail Status |
| EPS Growth Next 3 Years | ~12.5% Annualized | > 7.0% | PASS |
| EPS Growth Next Year | ~8.6% (Consensus FY27) | > 7.0% | PASS |
| ROCE | ~44.7% | > 20.0% | PASS |
| ROE (TTM) | ~42.5% | > 10.0% | PASS |
| 5-Year Average ROE | ~38.2% | > 10.0% | PASS |
| ROIC (TTM) | ~73.5% | > 15.0% | PASS (Elite capital efficiency) |
| 5-Year Average ROIC | ~63.1% | > 15.0% | PASS |
| TTM Net Profit Margin | 18.4% | > 10.0% | PASS |
| 5-Year Net Profit Margin | 16.8% | > 10.0% | PASS |
| TTM Gross Margin | 57.7% | > 40.0% | PASS |
| 5-Year Gross Margin | 53.3% | > 40.0% | PASS |
| TTM Free Cash Flow Margin | 16.5% | > 10.0% | PASS |
| 5-Year Free Cash Flow Margin | 15.2% | > 10.0% | PASS |
| FCF Conversion Ratio | > 90.0% | > 80.0% | PASS |
| CAPEX to Revenue (TTM) | ~2.2% | Asset-Light Target | PASS |
| 5-Year CAPEX to Revenue | ~2.4% | Asset-Light Target | PASS |
| TTM Revenue Growth | 9.8% | > 5.0% | PASS |
| 5-Year Revenue Growth | 14.4% CAGR | > 5.0% | PASS |
| TTM EPS Growth | +10.8% YoY | > 7.0% | PASS |
| Last 5 Year EPS Growth | 25.4% CAGR | > 7.0% | PASS |
| Sloan Ratio | +1.4% | -10.0% to +10.0% | PASS (High earnings quality) |
| Debt to Equity | 0.21x | Conservative Leverage | PASS |
| Net Corporate Debt to EBITDA | Net Cash Position (~$1.5B Cash vs ~$112M Debt) | < 3.0x | PASS (Fortress balance sheet) |
5. Growth Catalysts
- HOKA Global Scaling & DTC Expansion: Continued market share conquest in performance running, trail, and lifestyle categories across North America, Europe, and Asia-Pacific.
- UGG Brand Elevation & Seasonality Expansion: Transforming UGG into a year-round premium global lifestyle brand through product diversification, innovative silhouettes, and direct-to-consumer store growth.
- International Market Penetration: Significant top-line runway in under-penetrated international markets, particularly Greater China and EMEA retail ecosystems.
6. Dividend & Capital Return Profile
- Quarterly Dividend: $0.00 per share (No dividend paid; 100% earnings reinvestment and share buybacks).
- Dividend Track Record: N/A (Focuses capital deployment on growth R&D, inventory, and share repurchases).
- Payout Ratio: 0.0% (Reinvests earnings to maximize return on invested capital).
- Share Repurchases: Active share repurchase program returning over $400 Million annually to shareholders; completed a 6-for-1 stock split in September 2024 to enhance liquidity.
7. Historical Stock Returns
| Time Horizon | DECK Total Return | Benchmark / Context |
| 1-Month | -1.82% | Pulled back alongside broader consumer discretionary sector |
| YTD (2026) | -18.20% | Valuation adjustment following multi-year expansion |
| 1-Year | -13.48% | Consolidation after reaching historical highs |
| 3-Year Return | +112.5% (Cumulative) | Strong outperformance relative to footwear peers |
| 5-Year CAGR | +21.2% (Annualized) | Outstanding long-term wealth compounder |
8. SWOT Analysis
Strengths
- Industry-leading capital efficiency (>70% ROIC) driven by outsourced manufacturing and strong brand pricing power.
- High-growth brand portfolio led by HOKA’s rapid global expansion and UGG’s iconic brand equity.
- Fortress balance sheet with over $1.5 Billion in cash and minimal debt obligations.
Weaknesses
- Revenue concentration heavily weighted toward HOKA and UGG brands.
- Lack of dividend yield for income-oriented investors.
Opportunities
- Expansion of direct-to-consumer (DTC) retail stores and international wholesale partnerships.
- Product line diversification into athletic apparel, outerwear, and non-footwear accessories.
Threats
- Intense competition from global athletic footwear giants (Nike, On Running, Brooks, Adidas).
- Macroeconomic headwinds or discretionary consumer spending slowdowns impacting premium footwear.
9. Investment Thesis
Core Case: Deckers Outdoor Corporation (DECK) represents a premier growth compounder in the footwear and lifestyle sector. Combining world-class capital efficiency (73%+ ROIC) with an asset-light production model and a net-cash balance sheet, DECK is uniquely positioned to capture continued market share via HOKA’s athletic momentum and UGG’s brand equity. Backed by strong cash conversion, aggressive share buybacks, and high operating margins, DECK remains a high-quality compounder in consumer cyclicals.
10. Dividend Stockpile Score
