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Deckers Outdoor Corporation (DECK - Free Report) has been capturing attention on Wall Street, with a remarkable 15.5% increase in its stock price over the past three months. As a prominent player in the Retail - Apparel and Shoes industry, Deckers has demonstrated impressive earnings, strategic expansions and strong brand momentum, thanks to well-known brands like UGG and HOKA.
However, with DECK’s recent rally far outpacing the industry’s modest 1% rise, investors may be questioning whether the stock still has room to grow or if the optimal buying window has passed. Let’s dive into the factors driving Deckers' recent performance and whether now might be the ideal time to invest more or add DECK to your portfolio.
DECK Stock’s Past 3-Month Performance
Image Source: Zacks Investment Research
Closing yesterday’s trading session at $171.34, Deckers is trading below its 52-week high of $184.48 attained on June 3, 2024. The pullback from this peak could be attributed to profit-taking or broader market uncertainties, including geopolitical concerns. However, if the stock manages to break through its 52-week high, it could reignite buying interest and attract fresh capital.
Technical indicators support Deckers’ strong performance. The stock is trading above its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in Deckers’ financial health and prospects.
Deckers has shown robust growth through its strategic focus on expanding its brand presence and strengthening direct-to-consumer channels. This approach, along with a commitment to innovation in product development and a keen focus on international market expansion, has positioned the company for continued success.
DECK’s second-quarter fiscal 2025 results highlight growth in both revenues and earnings. Net sales surged 20.1% year over year, with the gross margin expanding 250 basis points to 55.9%. Earnings per share climbed 39%, underscoring Deckers' ability to leverage its brand strength while maintaining cost efficiency. The focus on premium products and full-price offerings across key brands, especially HOKA and UGG, reflects Deckers' successful strategy amid a competitive landscape that includes players such as Abercrombie & Fitch Co. (ANF - Free Report) , American Eagle Outfitters, Inc. (AEO - Free Report) and The Gap, Inc. (GAP - Free Report) .
HOKA has emerged as Deckers’ standout performer, experiencing exponential growth. In a significant achievement, HOKA’s revenues exceeded $2 billion over the trailing 12 months, showcasing its widespread popularity among athletes and casual wearers alike. This milestone was driven by a dual-channel strategy, as Deckers successfully expanded HOKA’s reach both in direct-to-consumer and wholesale channels. The brand’s rapid adoption internationally, with particular strength in Europe and Asia, demonstrates the effectiveness of Deckers’ global strategy.
While HOKA may be leading the charge, UGG continues to be a significant pillar in Deckers' portfolio. The brand saw 13% growth in the first half of fiscal 2025, supported by a well-rounded product lineup. Collaborations with influencers like Post Malone and an emphasis on seasonal styles have attracted customers and expanded UGG’s reach. As the holiday season approaches, UGG’s focus on full-price sales and innovative product offerings is expected to keep demand steady, even amid a competitive promotional environment.
Deckers has effectively strengthened its market reach through an aggressive focus on direct-to-consumer channels and strategic international expansion, especially in regions like Asia-Pacific. The company’s direct-to-consumer efforts have yielded impressive results, with revenues climbing 22% globally in the first half of fiscal 2025. This growth is largely driven by the success of HOKA, which contributed an impressive $100 million in incremental revenues, thanks to its strong brand appeal and effective customer engagement strategies. UGG also supported the growth, contributing an incremental $25 million in revenues.
A Sneak Peek Into Deckers’ Outlook
Management's focus on product innovation, international expansion and consumer-first initiatives strengthens Deckers' potential for continued success.
Deckers now envisions a 12% increase in fiscal 2025 net sales, reaching $4.8 billion, with HOKA anticipated to grow by around 24% and UGG by mid-single digits. This is up from its earlier projection of $4.7 billion in net sales.
Management now foresees fiscal 2025 earnings in the range of $5.15-$5.25 per share, up from $4.86 reported last year. Deckers had earlier guided earnings between $4.96 and $5.11 per share.
How Do Estimates Measure Up for DECK Stock?
Wall Street analysts have expressed confidence in Deckers stock by raising their earnings per share estimates. Over the past 30 days, the Zacks Consensus Estimate for the current fiscal year has jumped 3.2% to $5.45 per share, while projections for the next fiscal year have surged 5% to $6.14 per share, highlighting growing optimism about the company's future performance. The estimates suggest year-over-year increases of 12.1% and 12.6%, respectively.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Image Source: Zacks Investment Research
Deckers Valuation: Is Its Premium Price Tag Justified?
Deckers is currently trading at a premium relative to its industry peers, but this elevated valuation is supported by strong fundamentals. With a forward 12-month price-to-earnings (P/E) ratio of 29.19, above the past year’s median of 28.64, Deckers remains attractive to investors seeking growth potential. Compared to the industry’s forward P/E of 15.67 and the S&P 500’s ratio of 22.43, Deckers’ higher valuation reflects its position as a standout performer in the market.
Image Source: Zacks Investment Research
Should You Buy DECK Stock Now?
Deckers' robust brand portfolio, financial strength and strategic initiatives make it a compelling investment. The impressive growth of HOKA and UGG, balanced channel performance, and strong international expansion reflect a well-executed strategy that should continue to drive long-term value for investors. The company's ability to innovate, expand its customer base and leverage strong market trends positions it favorably for continued success. With a solid growth outlook and the leadership in place to steer the company forward, this Zacks Rank #2 (Buy) company presents an attractive opportunity for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is Deckers' 16% Gain in 3 Months a Signal to Buy DECK Stock Now?
Key Takeaways
Deckers Outdoor Corporation (DECK - Free Report) has been capturing attention on Wall Street, with a remarkable 15.5% increase in its stock price over the past three months. As a prominent player in the Retail - Apparel and Shoes industry, Deckers has demonstrated impressive earnings, strategic expansions and strong brand momentum, thanks to well-known brands like UGG and HOKA.
However, with DECK’s recent rally far outpacing the industry’s modest 1% rise, investors may be questioning whether the stock still has room to grow or if the optimal buying window has passed. Let’s dive into the factors driving Deckers' recent performance and whether now might be the ideal time to invest more or add DECK to your portfolio.
DECK Stock’s Past 3-Month Performance
Image Source: Zacks Investment Research
Closing yesterday’s trading session at $171.34, Deckers is trading below its 52-week high of $184.48 attained on June 3, 2024. The pullback from this peak could be attributed to profit-taking or broader market uncertainties, including geopolitical concerns. However, if the stock manages to break through its 52-week high, it could reignite buying interest and attract fresh capital.
Technical indicators support Deckers’ strong performance. The stock is trading above its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in Deckers’ financial health and prospects.
Deckers Trades Above 50 & 200-Day Moving Averages
Image Source: Zacks Investment Research
HOKA's Success & UGG's Popularity Boost DECK's Portfolio
Deckers has shown robust growth through its strategic focus on expanding its brand presence and strengthening direct-to-consumer channels. This approach, along with a commitment to innovation in product development and a keen focus on international market expansion, has positioned the company for continued success.
DECK’s second-quarter fiscal 2025 results highlight growth in both revenues and earnings. Net sales surged 20.1% year over year, with the gross margin expanding 250 basis points to 55.9%. Earnings per share climbed 39%, underscoring Deckers' ability to leverage its brand strength while maintaining cost efficiency. The focus on premium products and full-price offerings across key brands, especially HOKA and UGG, reflects Deckers' successful strategy amid a competitive landscape that includes players such as Abercrombie & Fitch Co. (ANF - Free Report) , American Eagle Outfitters, Inc. (AEO - Free Report) and The Gap, Inc. (GAP - Free Report) .
HOKA has emerged as Deckers’ standout performer, experiencing exponential growth. In a significant achievement, HOKA’s revenues exceeded $2 billion over the trailing 12 months, showcasing its widespread popularity among athletes and casual wearers alike. This milestone was driven by a dual-channel strategy, as Deckers successfully expanded HOKA’s reach both in direct-to-consumer and wholesale channels. The brand’s rapid adoption internationally, with particular strength in Europe and Asia, demonstrates the effectiveness of Deckers’ global strategy.
While HOKA may be leading the charge, UGG continues to be a significant pillar in Deckers' portfolio. The brand saw 13% growth in the first half of fiscal 2025, supported by a well-rounded product lineup. Collaborations with influencers like Post Malone and an emphasis on seasonal styles have attracted customers and expanded UGG’s reach. As the holiday season approaches, UGG’s focus on full-price sales and innovative product offerings is expected to keep demand steady, even amid a competitive promotional environment.
Deckers has effectively strengthened its market reach through an aggressive focus on direct-to-consumer channels and strategic international expansion, especially in regions like Asia-Pacific. The company’s direct-to-consumer efforts have yielded impressive results, with revenues climbing 22% globally in the first half of fiscal 2025. This growth is largely driven by the success of HOKA, which contributed an impressive $100 million in incremental revenues, thanks to its strong brand appeal and effective customer engagement strategies. UGG also supported the growth, contributing an incremental $25 million in revenues.
A Sneak Peek Into Deckers’ Outlook
Management's focus on product innovation, international expansion and consumer-first initiatives strengthens Deckers' potential for continued success.
Deckers now envisions a 12% increase in fiscal 2025 net sales, reaching $4.8 billion, with HOKA anticipated to grow by around 24% and UGG by mid-single digits. This is up from its earlier projection of $4.7 billion in net sales.
Management now foresees fiscal 2025 earnings in the range of $5.15-$5.25 per share, up from $4.86 reported last year. Deckers had earlier guided earnings between $4.96 and $5.11 per share.
How Do Estimates Measure Up for DECK Stock?
Wall Street analysts have expressed confidence in Deckers stock by raising their earnings per share estimates. Over the past 30 days, the Zacks Consensus Estimate for the current fiscal year has jumped 3.2% to $5.45 per share, while projections for the next fiscal year have surged 5% to $6.14 per share, highlighting growing optimism about the company's future performance. The estimates suggest year-over-year increases of 12.1% and 12.6%, respectively.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Image Source: Zacks Investment Research
Deckers Valuation: Is Its Premium Price Tag Justified?
Deckers is currently trading at a premium relative to its industry peers, but this elevated valuation is supported by strong fundamentals. With a forward 12-month price-to-earnings (P/E) ratio of 29.19, above the past year’s median of 28.64, Deckers remains attractive to investors seeking growth potential. Compared to the industry’s forward P/E of 15.67 and the S&P 500’s ratio of 22.43, Deckers’ higher valuation reflects its position as a standout performer in the market.
Image Source: Zacks Investment Research
Should You Buy DECK Stock Now?
Deckers' robust brand portfolio, financial strength and strategic initiatives make it a compelling investment. The impressive growth of HOKA and UGG, balanced channel performance, and strong international expansion reflect a well-executed strategy that should continue to drive long-term value for investors. The company's ability to innovate, expand its customer base and leverage strong market trends positions it favorably for continued success. With a solid growth outlook and the leadership in place to steer the company forward, this Zacks Rank #2 (Buy) company presents an attractive opportunity for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.