Deckers Outdoor stock fell 21% in February due to concerns about sales and margins

From Nasdaq: 2025-03-06 14:01:24

Shares of Deckers Outdoor (NYSE: DECK) fell 21.4% in February after the company reported financial results for its fiscal third quarter of 2025. Despite beating estimates and raising guidance, the stock continued to decline due to concerns about upcoming net sales and gross margins. Deckers has been a publicly traded company for 30 years and is guiding for record-high gross margins in fiscal 2025. However, the stock’s valuation was at an all-time high, leading to a slide as growth and margins cool off temporarily. Shoe retailers like Foot Locker have noted a preference for discounted shoes, creating headwinds for the industry. Nevertheless, Deckers expects to grow net sales by 15% in fiscal 2025 with a record gross margin of over 57%. The question remains on future growth for fiscal 2026 and beyond, with moderate growth potentially leading to decent stock performance given the company’s financial strength and lower valuation.

In an article discussing investing $1,000 in Deckers Outdoor, the Motley Fool Stock Advisor team did not include Deckers in their list of 10 best stocks for investors to buy now. The article highlights the success of Stock Advisor recommendations in the past and encourages investors to consider the latest top 10 list for potential returns. The author of the article has no position in any of the mentioned stocks, but the Motley Fool has positions in and recommends Deckers Outdoor and recommends Foot Locker.



Read more at Nasdaq: Why Deckers Stock Had a 21% Pullback in February