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Deckers Brands (DECK - Free Report) has been crushing it with two big brands: UGG and HOKA. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 38.6% in fiscal 2024.
Deckers Brands is a global footwear, apparel and accessories company with retail and online stores. Its portfolio of brands includes UGG, HOKA, Teva, Sanuk and Koolaburra.
Another Earnings Beat in the Third Quarter of Fiscal 2024
On Feb 1, 2024, Deckers reported its fiscal third quarter 2024 results and posted a huge earnings beat. Deckers reported $15.11, blowing by the Zacks Consensus of $11.40 by $3.71, or 32.5%.
It was a record on earnings, up 44% from a year ago.
This was Decker's 9th consecutive earnings beat.
Additionally, it has only had one earnings miss in the last 5 years, which included the difficult time for retailers during the pandemic when countries were on lock downs and stores were closed.
Image Source: Zacks Investment Research
That's impressive.
It was a record quarter for revenue as well, jumping 16% to $1.56 billion from $1.35 billion a year ago.
Sales were hot both domestically, rising 15.6% to $1.048 billion from $906.8 million a year ago, and internationally, which gained 16.7% to $511.9 million from $438.8 million.
Deckers two biggest brands saw strong sales increases. UGG rose 15.2% in the holiday quarter to $1.07 billion from $930.4 million a year ago. HOKA grew 21.9% to $429.3 million from $352.1 million.
Teva sales fell 16.2% to $25.6 million from $30.5 million and Sanuk sales also decreased 28.9% to $4 million from $5.6 million. But both of these brands are small compared to the two juggernauts of UGG and HOKA.
Gross margin rose to 58.7% from 53%.
Additionally, in another sign that the supply chain has normalized, Deckers inventories fell to $539 million from $723.4 million a year ago.
Raised Full Year Earnings Guidance Again
Deckers has beat on earnings and raised full year guidance three quarters in a row. The company now expects earnings to range from $26.25 to $26.50, about 36% above last year's earnings of $19.37.
Analysts are even more bullish. 11 estimates have been revised higher in the last 60 days for fiscal 2024 which has pushed up the Zacks Consensus to $26.85. This is above the company's guidance range but given that it has raised that range 3 quarters in a row, analysts are believing they will likely exceed the range again.
That is earnings growth of 38.6% above fiscal 2023.
Analysts are bullish on fiscal 2025 too. 11 estimates have been revised for next year in the last 2 months as well. That has pushed up the Zacks Consensus to $29.71 from $26.78 during that time. That's another 10.6% earnings growth.
Stock Powers to New All-Time Highs
Investors have piled into Deckers over the last year, which has pushed the stock to new all-time highs. Over the last 5 years, it has even outperformed the popular Invesco QQQ ETF.
Image Source: Zacks Investment Research
Shares are not cheap. It now trades with a forward P/E of 34.
But Deckers has a lot of cash on hand with $1.65 billion at the end of the third fiscal quarter 2024.
It also is shareholder friendly. While it doesn't pay a dividend, it has a massive ongoing share repurchase program.
In the third fiscal quarter, it bought $99.7 million in shares at a weighted average price of $507.95. As of Dec 31, 2023, there was $1.046 billion remaining on the stock repurchase authorization.
But shares are now over $900. Is Deckers still buying shares this quarter or has it moved to the sidelines? Be sure to tune into the fiscal fourth quarter earnings report to find out.
For investors looking for a top consumer company with big growth, Deckers should be on your short list.
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Bull of the Day: Deckers Brands (DECK)
Deckers Brands (DECK - Free Report) has been crushing it with two big brands: UGG and HOKA. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 38.6% in fiscal 2024.
Deckers Brands is a global footwear, apparel and accessories company with retail and online stores. Its portfolio of brands includes UGG, HOKA, Teva, Sanuk and Koolaburra.
Another Earnings Beat in the Third Quarter of Fiscal 2024
On Feb 1, 2024, Deckers reported its fiscal third quarter 2024 results and posted a huge earnings beat. Deckers reported $15.11, blowing by the Zacks Consensus of $11.40 by $3.71, or 32.5%.
It was a record on earnings, up 44% from a year ago.
This was Decker's 9th consecutive earnings beat.
Additionally, it has only had one earnings miss in the last 5 years, which included the difficult time for retailers during the pandemic when countries were on lock downs and stores were closed.
Image Source: Zacks Investment Research
That's impressive.
It was a record quarter for revenue as well, jumping 16% to $1.56 billion from $1.35 billion a year ago.
Sales were hot both domestically, rising 15.6% to $1.048 billion from $906.8 million a year ago, and internationally, which gained 16.7% to $511.9 million from $438.8 million.
Deckers two biggest brands saw strong sales increases. UGG rose 15.2% in the holiday quarter to $1.07 billion from $930.4 million a year ago. HOKA grew 21.9% to $429.3 million from $352.1 million.
Teva sales fell 16.2% to $25.6 million from $30.5 million and Sanuk sales also decreased 28.9% to $4 million from $5.6 million. But both of these brands are small compared to the two juggernauts of UGG and HOKA.
Gross margin rose to 58.7% from 53%.
Additionally, in another sign that the supply chain has normalized, Deckers inventories fell to $539 million from $723.4 million a year ago.
Raised Full Year Earnings Guidance Again
Deckers has beat on earnings and raised full year guidance three quarters in a row. The company now expects earnings to range from $26.25 to $26.50, about 36% above last year's earnings of $19.37.
Analysts are even more bullish. 11 estimates have been revised higher in the last 60 days for fiscal 2024 which has pushed up the Zacks Consensus to $26.85. This is above the company's guidance range but given that it has raised that range 3 quarters in a row, analysts are believing they will likely exceed the range again.
That is earnings growth of 38.6% above fiscal 2023.
Analysts are bullish on fiscal 2025 too. 11 estimates have been revised for next year in the last 2 months as well. That has pushed up the Zacks Consensus to $29.71 from $26.78 during that time. That's another 10.6% earnings growth.
Stock Powers to New All-Time Highs
Investors have piled into Deckers over the last year, which has pushed the stock to new all-time highs. Over the last 5 years, it has even outperformed the popular Invesco QQQ ETF.
Image Source: Zacks Investment Research
Shares are not cheap. It now trades with a forward P/E of 34.
But Deckers has a lot of cash on hand with $1.65 billion at the end of the third fiscal quarter 2024.
It also is shareholder friendly. While it doesn't pay a dividend, it has a massive ongoing share repurchase program.
In the third fiscal quarter, it bought $99.7 million in shares at a weighted average price of $507.95. As of Dec 31, 2023, there was $1.046 billion remaining on the stock repurchase authorization.
But shares are now over $900. Is Deckers still buying shares this quarter or has it moved to the sidelines? Be sure to tune into the fiscal fourth quarter earnings report to find out.
For investors looking for a top consumer company with big growth, Deckers should be on your short list.