We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DECK Stock Trades 1% Below 52-Week High: An Opportunity for Investors?
Read MoreHide Full Article
Deckers Outdoor Corporation’s (DECK - Free Report) shares are currently trading 0.9% below its 52-week high of $208.45 attained on Dec. 11, 2024, making investors contemplate their next moves. In the past year, DECK stock has gained 75.4% compared with the Zacks Retail-Apparel and Shoes industry’s 36% growth.
The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 32.9% and 28.6%, respectively, during the same period.
DECK Stock Past-Year Performance
Image Source: Zacks Investment Research
This leading designer and producer of innovative, niche footwear and accessories, closed Friday’s trading session at $206.63. The stock is trading above both its 50 and 200-day simple moving averages of $176.39 and $159.08, respectively, highlighting a continued uptrend.
DECK Trades Above 50 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Deckers Strengthens Market Position With Innovation & DTC Growth
Deckers’ strategic focus on innovation and direct-to-consumer (“DTC”) operations has solidified its position in the competitive footwear market. The company’s flagship brands, UGG and HOKA, continue to drive growth, with HOKA on track to become a multi-billion-dollar brand and UGG further establishing itself as a global lifestyle icon.
In the second quarter of fiscal 2025, HOKA achieved a remarkable 34.7% sales increase, while UGG grew 13%. This success stems from a diversified product portfolio and optimized distribution strategies, enabling Deckers to maintain strong market momentum.
Moreover, the company’s thriving DTC business contributed significantly, with net sales rising 19.9% to $397.7 million and comparable net sales growing 17%. Deckers has strengthened its digital capabilities and omnichannel presence, ensuring seamless customer experiences and broader brand accessibility.
DECK’s Global Expansion Drives International Growth
Deckers’ international footprint has become a critical driver of its growth strategy. In the fiscal second quarter, international sales surged 33% year over year, indicating strong performances from UGG and HOKA in global markets. Strategic investments in new stores and retail locations have further reinforced the company’s international presence.
By expanding its reach across multiple regions and leveraging the growing popularity of the company’s flagship brands, Deckers is effectively tapping into new markets and consumer bases. This global growth complements the company’s domestic success, fueling its upward trajectory in fiscal 2025 and beyond.
Deckers’ Strength in Wholesale Channels
Deckers continues to benefit from a strong wholesale channel, which significantly contributes to its revenue growth and market penetration. Wholesale revenues increased 20.2% year over year to $913.7 million in the fiscal second quarter, underscoring the channel’s effectiveness in driving incremental sales.
This growth was led by the stellar performance of HOKA and UGG, with wholesale revenues rising 33% and 14%, respectively. Early inventory shipments by retail partners ahead of peak seasons further boosted the channel’s performance, indicating strong consumer demand.
Optimistic FY25 Outlook of DECK
Deckers’ expansion strategy remains a cornerstone of its success, with total revenues for fiscal 2025 estimated at $4.8 billion, a 12% increase from the prior-year quarter. HOKA is expected to achieve 24% year-over-year growth, while UGG is forecasted to record mid-single-digit growth.
The company has also revised its gross margin outlook to 55-55.5%, up from the earlier estimate of 54%. Moreover, earnings per share (EPS) guidance has been raised to $5.15-$5.25 compared with the prior range of $4.96-$5.11, indicating improved profitability from $4.86 in the prior year.
Estimate Revisions Favor Deckers Stock
Analysts have responded positively to Deckers’ prospects, which has been reflected in upward revisions in the Zacks Consensus Estimate for EPS. In the past 30 days, analysts have increased their estimates for the current fiscal year by 1 penny. The consensus estimate for earnings is pegged at $5.48 per share.
The consensus estimate for earnings for the next fiscal year has been raised 1 penny to $6.21 per share. The Zacks Consensus Estimate for the current and the next fiscal year’s sales is pegged at $4.87 billion and $5.35 billion, indicating year-over-year growth of 13.6% and 9.8%, respectively.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Thoughts on DECK
Deckers stands out as a strong investment choice due to its innovative approach, thriving DTC operations and iconic brands like UGG and HOKA. With a proven ability to outperform market benchmarks, the company benefits from robust international growth, a strong wholesale network and solid market momentum. Analysts’ positive earnings revisions further reinforce confidence in Deckers’ long-term growth potential, making it an attractive option for investors. The company currently sports a Zacks Rank #1 (Strong Buy).
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the year-ago reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It carries a Zacks Rank of 2 (Buy) at present.
The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 69% and 14.9%, respectively, from the prior-year reported levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DECK Stock Trades 1% Below 52-Week High: An Opportunity for Investors?
Deckers Outdoor Corporation’s (DECK - Free Report) shares are currently trading 0.9% below its 52-week high of $208.45 attained on Dec. 11, 2024, making investors contemplate their next moves. In the past year, DECK stock has gained 75.4% compared with the Zacks Retail-Apparel and Shoes industry’s 36% growth.
The company’s enhanced operational efficiency and growth initiatives have also helped it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s growth of 32.9% and 28.6%, respectively, during the same period.
DECK Stock Past-Year Performance
Image Source: Zacks Investment Research
This leading designer and producer of innovative, niche footwear and accessories, closed Friday’s trading session at $206.63. The stock is trading above both its 50 and 200-day simple moving averages of $176.39 and $159.08, respectively, highlighting a continued uptrend.
DECK Trades Above 50 & 200-Day Moving Averages
Image Source: Zacks Investment Research
Deckers Strengthens Market Position With Innovation & DTC Growth
Deckers’ strategic focus on innovation and direct-to-consumer (“DTC”) operations has solidified its position in the competitive footwear market. The company’s flagship brands, UGG and HOKA, continue to drive growth, with HOKA on track to become a multi-billion-dollar brand and UGG further establishing itself as a global lifestyle icon.
In the second quarter of fiscal 2025, HOKA achieved a remarkable 34.7% sales increase, while UGG grew 13%. This success stems from a diversified product portfolio and optimized distribution strategies, enabling Deckers to maintain strong market momentum.
Moreover, the company’s thriving DTC business contributed significantly, with net sales rising 19.9% to $397.7 million and comparable net sales growing 17%. Deckers has strengthened its digital capabilities and omnichannel presence, ensuring seamless customer experiences and broader brand accessibility.
DECK’s Global Expansion Drives International Growth
Deckers’ international footprint has become a critical driver of its growth strategy. In the fiscal second quarter, international sales surged 33% year over year, indicating strong performances from UGG and HOKA in global markets. Strategic investments in new stores and retail locations have further reinforced the company’s international presence.
By expanding its reach across multiple regions and leveraging the growing popularity of the company’s flagship brands, Deckers is effectively tapping into new markets and consumer bases. This global growth complements the company’s domestic success, fueling its upward trajectory in fiscal 2025 and beyond.
Deckers’ Strength in Wholesale Channels
Deckers continues to benefit from a strong wholesale channel, which significantly contributes to its revenue growth and market penetration. Wholesale revenues increased 20.2% year over year to $913.7 million in the fiscal second quarter, underscoring the channel’s effectiveness in driving incremental sales.
This growth was led by the stellar performance of HOKA and UGG, with wholesale revenues rising 33% and 14%, respectively. Early inventory shipments by retail partners ahead of peak seasons further boosted the channel’s performance, indicating strong consumer demand.
Optimistic FY25 Outlook of DECK
Deckers’ expansion strategy remains a cornerstone of its success, with total revenues for fiscal 2025 estimated at $4.8 billion, a 12% increase from the prior-year quarter. HOKA is expected to achieve 24% year-over-year growth, while UGG is forecasted to record mid-single-digit growth.
The company has also revised its gross margin outlook to 55-55.5%, up from the earlier estimate of 54%. Moreover, earnings per share (EPS) guidance has been raised to $5.15-$5.25 compared with the prior range of $4.96-$5.11, indicating improved profitability from $4.86 in the prior year.
Estimate Revisions Favor Deckers Stock
Analysts have responded positively to Deckers’ prospects, which has been reflected in upward revisions in the Zacks Consensus Estimate for EPS. In the past 30 days, analysts have increased their estimates for the current fiscal year by 1 penny. The consensus estimate for earnings is pegged at $5.48 per share.
The consensus estimate for earnings for the next fiscal year has been raised 1 penny to $6.21 per share. The Zacks Consensus Estimate for the current and the next fiscal year’s sales is pegged at $4.87 billion and $5.35 billion, indicating year-over-year growth of 13.6% and 9.8%, respectively.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Final Thoughts on DECK
Deckers stands out as a strong investment choice due to its innovative approach, thriving DTC operations and iconic brands like UGG and HOKA. With a proven ability to outperform market benchmarks, the company benefits from robust international growth, a strong wholesale network and solid market momentum. Analysts’ positive earnings revisions further reinforce confidence in Deckers’ long-term growth potential, making it an attractive option for investors. The company currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks are The Gap, Inc. (GAP - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Steven Madden, Ltd. (SHOO - Free Report) .
Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It presently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2025 earnings and sales indicates growth of 41.3% and 0.8%, respectively, from the year-ago reported figures. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It carries a Zacks Rank of 2 (Buy) at present.
The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 69% and 14.9%, respectively, from the prior-year reported levels. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.6% and 13.6%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 9.8%.