BTIG has reaffirmed a Neutral recommendation on Deckers Outdoor (DECK) in the wake of the company's fiscal third-quarter results, which showed an earnings-per-share outcome above expectations. Deckers is trading at a price-to-earnings ratio of 14.77 and is identified as undervalued based on InvestingPro Fair Value estimates. Over the last twelve months the company reported diluted earnings per share of $6.75.
Analysts at BTIG noted that Deckers saw a positive re-inflection in direct-to-consumer (DTC) sales for both its UGG and HOKA brands during the quarter, addressing earlier concerns about slowing demand and the possible knock-on effects on wholesale order flow. That improvement contributed to a more balanced channel growth complexion, which raised BTIG's confidence that current estimates for the company are appropriately set.
However, BTIG also emphasized that at least some of the DTC improvement came from incremental promotions. The firm interpreted that promotional contribution as evidence of price sensitivity among consumers, suggesting that a portion of the quarter's DTC gains may have been driven by temporary offers rather than solely by underlying demand growth.
For HOKA specifically, BTIG said that maintaining double-digit percentage growth over the medium term will hinge on successful expansion into lifestyle apparel and footwear categories. Deckers has a strategy in place to pursue lifestyle expansion for HOKA, but BTIG characterizes that initiative as still being in its early stages.
Financially, Deckers reported revenue growth of 12.62% and a five-year compound annual growth rate of 19%. The company also displays a strong Altman Z-Score of 10.44. InvestingPro provides additional analysis and 10 more tips on Deckers in its Pro Research Report for subscribers.
In related reporting on the company's most recent quarter, Deckers Outdoor Corporation posted a robust fiscal Q3 2026 performance, with earnings per share of $3.33 versus a forecast of $2.76. Revenue for the quarter came in at $1.96 billion, topping the expected $1.87 billion. Following those results, Evercore ISI raised its price target on Deckers from $90 to $108 while keeping an "In Line" rating, citing the overall strength of the quarter and notable contributions from the UGG and HOKA brands.
The combination of DTC re-acceleration, a healthier channel mix, and better-than-expected quarterly results underpins the current analyst stance: cautious neutrality supported by improving fundamentals but tempered by promotional dynamics and the early-stage nature of some growth strategies.