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POLAND - 2024/12/17: In this photo illustration, the Deckers Brands company logo is seen displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Deckers Outdoor (DECK) stock has decreased by 22.1% in under a month, dropping from $103.80 on 10/2/2025 to $80.89 at present. What is next? We believe there is a strong possibility of a stock recovery given the historical patterns of recovery after declines and our current Attractive assessment of the stock. Buying during dips is a proven strategy for high-quality stocks that have a track record of bouncing back from downturns. Deckers posted respectable results in its most recent quarter — revenue rose about 9% year-over-year and EPS came in ahead of expectations. However, the problem came with the guidance and underlying headwinds: management gave a cautious outlook for full-year sales, citing consumer pull-back, tariff and cost pressures, and softness in its big brands such as UGG (direct‐to‐consumer sales dropped) and a slowing growth rate compared to historic levels. In short: good quarter, but weak future visibility, which spooked investors and sent the price down. What could push it up? If Deckers can restore confidence in its growth trajectory, the stock could bounce. Key levers would include stronger than expected growth in the HOKA and UGG brands (especially if the brand momentum picks up again), improvement in margins (by offsetting cost/tariff pressures through pricing, sourcing or operational efficiencies), and clearer guidance that alleviates concerns about consumer demand. A refreshed marketing push, new product hits, or expanding into faster-growing international markets could also serve as catalysts. It turns out that DECK stock meets fundamental quality criteria. Historically, the stock has given a median return of 58% over one year, and 74% at peak return after experiencing sharp declines (>30% in 30 days). For quick context, DECK offers footwear, apparel, and accessories for both casual and high-performance uses, selling through department stores, specialty shops, and running 140 global retail outlets as of March 2021. For more information on stock fundamentals and evaluations, read Buy or Sell Deckers Outdoor Stock to understand the complete picture. Investing in a single stock can be risky, but adhering to a more extensive, diversified strategy is highly valuable, as seen in the Trefis High Quality Portfolio. Trefis collaborates with Empirical Asset Management—a wealth management firm located in the Boston area—whose asset allocation strategies delivered positive returns during the 2008-09 recession when the S&P lost over 40%. Empirical has integrated the Trefis HQ Portfolio within its asset allocation framework to provide clients with higher returns while accepting lower risk compared to the benchmark index. MORE FOR YOU Historical Median Returns Post Dips Historical Dip-Wise Details DECK has experienced 4 instances since 1/1/2010 where the decline threshold of -30% within 30 days was reached 74% median peak return within one year of the dip event 196 days is the median time to peak return following a dip event -29% median maximum drawdown within one year of the dip event Deckers Outdoor Passes Basic Financial Quality Checks To decrease the risk of a dip being indicative of a declining business situation, an assessment of revenue growth, profitability, cash flow, and balance sheet strength is essential. While dip buying is appealing, it requires thorough evaluation from various perspectives. This multi-faceted analysis is precisely how we shape the Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, which has a history of significantly outperforming its benchmark, including all three—the S&P 500, S&P mid-cap, and the Russell 2000 indices. Why is this so? As a collective, HQ Portfolio stocks have provided superior returns with reduced risk compared to the benchmark index; avoiding the volatile ups and downs, as shown in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
