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Deckers (DECK) Stock Surges 98.4% in a Year: Here's Why
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Deckers Outdoor Corporation (DECK - Free Report) stock has been doing well on the bourses, thanks to its efforts related to product innovations, store expansion and enhancement of e-commerce capabilities. DECK’s focus on expanding its brand assortments, bringing a more innovative line of products and optimizing omnichannel distribution bodes well.
Buoyed by the aforesaid tailwinds, this major footwear and accessories designer’s shares have appreciated 98.4%, comfortably outperforming the industry’s 7.9% growth in the past year.
Let’s Delve Deep
Deckers is targeting profitable and underpenetrated markets to boost overall sales. Greater acceptance of the UGG brand's diverse product line along with the progress in Europe and Asia Pacific bode well. The HOKA ONE ONE brand is also performing impressively. The brand continues to build its customer base through a combination of robust product innovation and a disciplined marketing approach.
Image Source: Zacks Investment Research
The company is progressing toward building HOKA ONE ONE into a major multibillion-dollar player, elevating UGG as a global lifestyle brand with diverse product offerings and enhancing direct-to-consumer (DTC) business. The company continues exploring opportunities to strategically expand the HOKA ONE ONE brand’s retail store fleet.
Management has also been constantly developing its e-commerce portal to efficiently resonate with the evolving trends. The company is focused on opening smaller concept omnichannel outlets and expanding programs such as Retail Inventory Online, Infinite UGG, Buy Online, Return In Store and Click and Collect to enrich customers’ shopping experience.
Markedly, DTC revenues grew 19.5%, while comparable DTC net sales jumped 18.4% in the fourth quarter of fiscal 2023. HOKA continues to be a key driver of consolidated growth. Teva also maintained a strong mix of its business in the DTC channel as the brand’s net sales increased 14.6%.
Furthermore, Deckers is focused on product and marketing strategies that are more skewed toward customers. The company has also been focusing on expanding its product categories per customer purchasing trends that differ with the weather. Its brand strength also bodes well. During fourth-quarter fiscal 2023, HOKA ONE ONE brand’s net sales surged 40.3% while Teva brand’s net sales increased 14.6% year over year.
We believe that the company’s focus on ramping up inventory, optimizing channel mix to fulfill consumer demand, scaling production to support brands and implementing price increases should position it well for growth. An impressive long-term projected growth rate of 18.4% further highlights the strength of this current Zacks Rank #3 (Hold) company.
Analysts seem optimistic about the stock. The Zacks Consensus Estimate for Deckers’ fiscal 2024 sales and earnings per share (EPS) is currently pegged at $3.96 billion and $21.76, respectively. These estimates suggest growth of 9% and 12.3%, respectively, from the year-ago fiscal quarter’s corresponding figures. The consensus estimate for the next fiscal year’s sales and EPS of $4.35 billion and $25.31, respectively, reflects a corresponding increase of 10% and 16.3% year over year.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 48.7% and 162.9%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 17.1% and 18.4%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 2.8% and 13.1%, respectively, from the year-ago corresponding figures.
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Deckers (DECK) Stock Surges 98.4% in a Year: Here's Why
Deckers Outdoor Corporation (DECK - Free Report) stock has been doing well on the bourses, thanks to its efforts related to product innovations, store expansion and enhancement of e-commerce capabilities. DECK’s focus on expanding its brand assortments, bringing a more innovative line of products and optimizing omnichannel distribution bodes well.
Buoyed by the aforesaid tailwinds, this major footwear and accessories designer’s shares have appreciated 98.4%, comfortably outperforming the industry’s 7.9% growth in the past year.
Let’s Delve Deep
Deckers is targeting profitable and underpenetrated markets to boost overall sales. Greater acceptance of the UGG brand's diverse product line along with the progress in Europe and Asia Pacific bode well. The HOKA ONE ONE brand is also performing impressively. The brand continues to build its customer base through a combination of robust product innovation and a disciplined marketing approach.
Image Source: Zacks Investment Research
The company is progressing toward building HOKA ONE ONE into a major multibillion-dollar player, elevating UGG as a global lifestyle brand with diverse product offerings and enhancing direct-to-consumer (DTC) business. The company continues exploring opportunities to strategically expand the HOKA ONE ONE brand’s retail store fleet.
Management has also been constantly developing its e-commerce portal to efficiently resonate with the evolving trends. The company is focused on opening smaller concept omnichannel outlets and expanding programs such as Retail Inventory Online, Infinite UGG, Buy Online, Return In Store and Click and Collect to enrich customers’ shopping experience.
Markedly, DTC revenues grew 19.5%, while comparable DTC net sales jumped 18.4% in the fourth quarter of fiscal 2023. HOKA continues to be a key driver of consolidated growth. Teva also maintained a strong mix of its business in the DTC channel as the brand’s net sales increased 14.6%.
Furthermore, Deckers is focused on product and marketing strategies that are more skewed toward customers. The company has also been focusing on expanding its product categories per customer purchasing trends that differ with the weather. Its brand strength also bodes well. During fourth-quarter fiscal 2023, HOKA ONE ONE brand’s net sales surged 40.3% while Teva brand’s net sales increased 14.6% year over year.
We believe that the company’s focus on ramping up inventory, optimizing channel mix to fulfill consumer demand, scaling production to support brands and implementing price increases should position it well for growth. An impressive long-term projected growth rate of 18.4% further highlights the strength of this current Zacks Rank #3 (Hold) company.
Analysts seem optimistic about the stock. The Zacks Consensus Estimate for Deckers’ fiscal 2024 sales and earnings per share (EPS) is currently pegged at $3.96 billion and $21.76, respectively. These estimates suggest growth of 9% and 12.3%, respectively, from the year-ago fiscal quarter’s corresponding figures. The consensus estimate for the next fiscal year’s sales and EPS of $4.35 billion and $25.31, respectively, reflects a corresponding increase of 10% and 16.3% year over year.
Eye These Solid Picks
Some better-ranked companies are Royal Caribbean (RCL - Free Report) , lululemon athletica (LULU - Free Report) and Ralph Lauren (RL - Free Report) .
Royal Caribbean sports a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 48.7% and 162.9%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 17.1% and 18.4%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 2.8% and 13.1%, respectively, from the year-ago corresponding figures.