Back to top

Image: Bigstock

Deckers (DECK) to Post Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

Deckers Outdoor Corporation (DECK - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2023 earnings results on Jul 28, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $576.6 million, indicating an improvement of 14.3% from the prior-year reported figure.

The bottom line of this designer, marketer and distributor of footwear, apparel, and accessories is expected to decline year over year. The Zacks Consensus Estimate for first-quarter earnings per share has fallen 5.4% to $1.41 over the past seven days and suggests a decline of 17.5% from the year-ago period.

In the last reported quarter, this Goleta, CA-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 85.9%.

Key Factors to Note

Deckers’ first-quarter performance is likely to have benefited from the acceleration of omni-channel capabilities, customer-centric approach and marketing strategies. The company’s focus on expanding brand assortments, introducing an innovative line of products and enhancing direct-to-consumer business might have acted as tailwinds. Additionally, strategic price increases of products might have supported the top line in the quarter under review.

Keeping pace with the changing trends, Deckers has constantly been developing its e-commerce portal to capture incremental sales. The company has been making substantial investments to strengthen its online presence and enhance the shopping experience. Management is focused on ramping up inventory in response to supply-chain bottlenecks, optimizing channel mix to fulfill consumer demand and scaling production to support the growth of brands.

We note that the Zacks Consensus Estimate for first-quarter sales at HOKA ONE ONE and Teva brands are pegged at $288 million and $59 million, indicating an increase of 35.1% and 0.9%, respectively. The consensus estimates for sales at the UGG brand suggest a decline of 2.3% to $208 million from the year-ago period. The consensus mark for sales at the Sanuk brand stands at $15 million, flat compared with the prior-year quarter.

While the aforementioned factors raise optimism, prolonged transit lead times and cost pressures owing to container shortages, port congestion, and trucking and labor scarcity remain concerns. These are likely to have weighed on margins.

 

Deckers Outdoor Corporation Price, Consensus and EPS Surprise

Deckers Outdoor Corporation Price, Consensus and EPS Surprise

Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Deckers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Although Deckers currently has a Zacks Rank #3, its Earnings ESP of -11.60% makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Caleres (CAL - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.32 suggests an improvement from $1.19 reported in the year-ago quarter.

Caleres' top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $736.1 million, which indicates an improvement of 9% from the figure reported in the prior-year quarter. CAL has a trailing four-quarter earnings surprise of 62.9%, on average.

Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.78 suggests an improvement of 4.8% from the year-ago quarter.

Ulta Beauty's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues stands at $2.18 billion, which indicates an improvement of 10.8% from the figure reported in the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.

Crocs (CROX - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.73 suggests an improvement of 22.4% from the year-ago quarter.

Crocs' top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $950.9 million, which indicates an improvement of 48.4% from the figure reported in the prior-year quarter. CROX has a trailing four-quarter earnings surprise of 26.5%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in