Summary
- Deckers Outdoor Corporation is upgraded from Sell to a cautious Hold, due to resilient international growth and UGG sales rebound.
- Gross margins improved YoY in Q2 2026, aided by favorable product mix, price increases, and FX, while international markets offset domestic softness.
- HOKA’s market share gains and competitive position remain strong, but sustained topline and DTC channel softness temper optimism for a Buy ratin…
Summary
- Deckers Outdoor Corporation is upgraded from Sell to a cautious Hold, due to resilient international growth and UGG sales rebound.
- Gross margins improved YoY in Q2 2026, aided by favorable product mix, price increases, and FX, while international markets offset domestic softness.
- HOKA’s market share gains and competitive position remain strong, but sustained topline and DTC channel softness temper optimism for a Buy rating.
- Valuation appears attractive at ~15.5x forward P/E, but flat EPS guidance and tariff headwinds suggest waiting for Q4 results before fresh investments.
JHVEPhoto/iStock Editorial via Getty Images
Since my July Sell thesis on Deckers Outdoor Corporation (DECK). The stock has underperformed the broader S&P 500 index and at one point was down ~25% from my sell call. However, I see some of the
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