📊 DECK Key Takeaways
Investment Thesis
Deckers demonstrates exceptional financial strength with outstanding profitability metrics (57.7% gross margin, 25.4% operating margin, 20.4% net margin) and impressive growth (16.3% revenue YoY, 30.2% EPS growth). The company generates substantial free cash flow ($1.0B, 23.4% FCF margin) with minimal leverage (0.0x debt/equity) and fortress-like balance sheet ($2.1B cash, 2.86x current ratio), positioning it as a premium operator in footwear with sustainable competitive advantages.
DECK Strengths
- Exceptional profitability margins across all levels (gross, operating, net) significantly above sector averages
- Strong revenue growth (16.3% YoY) coupled with operating leverage driving 30.2% EPS growth
- Outstanding cash generation ($1.0B FCF) with minimal capital intensity (CapEx only 1.5% of revenue)
- No financial leverage (0.0x debt/equity) with substantial cash reserves ($2.1B) providing strategic flexibility
- Superior return metrics (34.0% ROE, 21.7% ROA) indicating efficient capital allocation
- Excellent liquidity position (2.86x current ratio, 2.30x quick ratio) with no solvency concerns
DECK Risks
- High profitability metrics may face compression if competitive pressures intensify or brand positioning weakens
- Footwear industry exposure to consumer discretionary demand cyclicality and economic slowdown sensitivity
- Significant insider trading activity (14 Form 4 filings in 90 days) warrants monitoring for potential sentiment concerns
- Geographic and channel concentration risks not detailed in available data; reliance on key product lines
- Supply chain vulnerabilities typical to apparel/footwear sector with international manufacturing dependencies
Key Metrics to Watch
- Gross margin sustainability and trend (currently 57.7%)
- Revenue growth consistency and acceleration/deceleration patterns
- Free cash flow conversion and capital allocation efficiency
- Debt/equity ratio for any future leverage increases
- Return on equity maintenance above 30% threshold
- Insider transaction patterns for any notable accumulation or distribution trends
DECK Financial Metrics
💡 AI Analyst Insight
The 23.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.86x current ratio provides a solid financial cushion.
DECK Profitability Ratios
DECK vs Default Sector
How DECKERS OUTDOOR CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DECK Balance Sheet & Liquidity
DECK 5-Year Financial Trend
5-Year Trend Summary: DECKERS OUTDOOR CORP's revenue has grown significantly by 96% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.23 reflects profitable operations.
DECK Growth Metrics (YoY)
DECK Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.8B | $115.6M | $3.00 |
| Q2 2026 | $1.3B | $115.6M | $1.59 |
| Q1 2026 | $825.3M | $115.6M | $0.75 |
| Q3 2025 | $1.6B | $63.6M | $2.52 |
| Q2 2025 | $1.1B | $63.6M | $1.14 |
| Q1 2025 | $675.8M | $63.6M | $2.41 |
| Q3 2024 | $1.3B | $44.8M | $10.48 |
| Q2 2024 | $875.6M | $44.8M | $3.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DECK Capital Allocation
DECK SEC Filings
Access official SEC EDGAR filings for DECKERS OUTDOOR CORP (CIK: 0000910521)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DECK
What is the AI rating for DECK?
DECKERS OUTDOOR CORP (DECK) has an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DECK's key strengths?
Claude: Exceptional profitability margins across all levels (gross, operating, net) significantly above sector averages. Strong revenue growth (16.3% YoY) coupled with operating leverage driving 30.2% EPS growth.
What are the risks of investing in DECK?
Claude: High profitability metrics may face compression if competitive pressures intensify or brand positioning weakens. Footwear industry exposure to consumer discretionary demand cyclicality and economic slowdown sensitivity.
What is DECK's revenue and growth?
DECKERS OUTDOOR CORP reported revenue of $4.4B.
Does DECK pay dividends?
DECKERS OUTDOOR CORP does not currently pay dividends.
Where can I find DECK SEC filings?
Official SEC filings for DECKERS OUTDOOR CORP (CIK: 0000910521) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DECK's EPS?
DECKERS OUTDOOR CORP has a diluted EPS of $6.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.