Deckers Outdoor Q1: The Thesis Is Still Intact

Deckers Outdoor delivered a solid quarter with 5.7% YoY revenue growth, led by Hoka (+7.7%) and UGG (+4.9%). Despite a 12.7% SG&A increase pressuring operating income, DECK’s gross margin improved to 56.4%, and international sales rose 8.4%. At a P/E of 13x, DECK offers compelling value, especially given its growth profile, strong balance sheet, and optionality in underpenetrated markets. I maintain a buy rating, seeing upside from continued execution, potential multiple expansion, and shareholder returns via buybacks or dividends.

Deckers Outdoor (DECK) just reported earnings, and the market didn't like it. Particularly, I thought it was a quite solid quarter; it just confirms that the company continues to deliver good.