Is Deckers' Growth Story Slowing? Analysts Share Mixed Views

Core Viewpoint - Deckers Outdoor Corporation reported strong quarterly earnings, exceeding analyst expectations, but shares are trading lower due to concerns over future sales and inventory management [1][5]. Financial Performance - Quarterly earnings were $3 per share, surpassing the consensus estimate of $2.55 [1]. - Quarterly revenue reached $1.83 billion, beating the analyst consensus of $1.73 billion and increasing from $1.56 billion in the same period last year [1]. - For fiscal 2025, revenue growth is projected at 15%, with earnings expected between $5.75 and $5.80 per share [1]. Analyst Insights - Telsey Advisory Group noted strong results amid a challenging macro environment and praised the company's inventory management strategy [2]. - Piper Sandler indicated a potential slowdown in fourth-quarter sales and lower gross margins due to increased markdowns on UGG products [3]. - Truist Securities highlighted that the quarterly slowdown is attributed to inventory management and UGG shortages, but remains optimistic about growth [5]. - Needham emphasized Deckers as a high-quality company with strong brands and a solid management team, suggesting a favorable outlook for the next quarters [6]. - Stifel expressed concerns that HOKA growth projections for FY26 may be overly optimistic, despite confidence in the company's execution [7]. Price Forecasts and Ratings - Telsey Advisory Group maintained an Outperform rating with a price target of $240 [8]. - Piper Sandler reiterated a Neutral rating with a price target of $210 [8]. - Truist Securities maintained a Buy rating but lowered the price target to $225 from $235 [8]. - Needham reiterated a Buy rating with a price target of $246 [8]. - Stifel maintained a Hold rating, raising the price target to $185 from $181 [8]. - Guggenheim raised the gross margin estimate for FY25 to 57.2% from 55.5% [9]. Market Reaction - Deckers shares are trading lower by 18.8%, currently at $181.12 [9].