Deckers Outdoor Corporation (DECK): A Bull Case Theory

We came across a bullish thesis on Deckers Outdoor Corporation on Valueinvestorsclub.com by natey1015. In this article, we will summarize the bulls’ thesis on DECK. Deckers Outdoor Corporation’s share was trading at $101.73 as of July 11^th. DECK’s trailing and forward P/E were 16.07 and 16.89 respectively according to Yahoo Finance.

Deckers Outdoor Corporation (DECK) presents a compelling multi-year compounder opportunity despite near-term challenges. The stock is down ~40% year-to-date due to tariff risks and consumer weakness in the U.S. low-to-middle income segment. However, DECK’s two core brands, Hoka and UGG, remain strong growth drivers. Hoka, initially popular among older consumers and healthcare professionals, has expanded into younger demographics, carving out market share from incumbents like Nike and Adidas.

With a focus on running and walking categories, Hoka is estimated to reach ~$3.0 billion in near-term revenue, and its growth runway remains substantial. UGG has successfully evolved beyond its roots in boots and slippers into a global lifestyle brand, expanding into sneakers, clogs, and sandals. Management’s deliberate scarcity model and controlled growth strategy have resulted in strong brand health and full-price selling, with UGG expected to generate ~$3.1 billion in near-term revenue.

International growth for both brands is outpacing domestic sales, highlighting DECK’s increasing global footprint. Compared to peers, DECK trades at a discount despite delivering higher growth. Hoka’s comps such as Nike and On Holding trade at significantly higher multiples despite weaker or less profitable business profiles, and UGG’s peer Ralph Lauren has lower growth but a higher valuation. Management commentary emphasizes long-term brand strength and market share gains through disciplined marketplace management and product innovation.

Key risks include potential growth deceleration at UGG and competitive pressure from Nike reclaiming market share. If DECK sustains its revenue growth in the high single to low double digits, the company could deliver mid-teens EPS growth over the next five years, offering attractive upside.

Previously we covered a bullish thesis on Deckers Outdoor Corporation by Charts&Companies in May 2025, which highlighted strong brand equity in UGG and HOKA and solid financial growth. The company’s stock price has depreciated approximately by 13% since our coverage. This is because macro headwinds pressured sentiment. natey1015 shares a similar view but emphasizes near-term mispricing and long-term compounding potential.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.