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Deckers: A Solid Bet on Sturdy Fundamentals & Initiatives
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Is Deckers Outdoor Corp. (DECK - Free Report) part of your portfolio? If not, then this might be the right time to add the stock as it looks promising. Moreover, the underlying factors are capable of carrying the momentum further. The stock carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 10.8% with a VGM Score of “A”. Additionally, the stock price has surged approximately 25% year to date. Together these factors highlight the company’s inherent strength.
Investors want their portfolio to have stocks with a track record of better-than-expected results, surging share price and a favorable recommendation, and we believe that Deckers fulfills all these criteria. It is indeed a sound investment opportunity.
Sturdy Fundamentals and Strategic Initiatives
Deckers is focused on expanding its brand assortments, bringing more innovation in its line of products, targeting consumers digitally via marketing and sturdy eCommerce, along with optimizing omni-channel distribution. All these endeavors aided the company to post better-than-expected bottom-line results for the fifth straight quarter, as it reported first-quarter fiscal 2017 results.
In an effort to speed up growth through its long-term strategies; this designer, marketer and distributor of footwear, apparel and accessories for casual lifestyle announced an organization restructuring plan. The plan focuses on realigning its brands into two groups, consolidating its brand offices for Sanuk and Ahnu brands along with optimizing its store fleet.
As part of revamping its brands, the company has begun to realign its brands into two groups, namely Fashion Lifestyle and Performance Lifestyle. The Fashion Lifestyle group will comprise of the UGG and Koolaburra brands, whereas the Performance Lifestyle group will include the Teva, Sanuk and Hoka brands.
The company’s store fleet optimization plan focuses on striking the right balance between digital and physical stores. To do this, Deckers has identified more than 20 retail locations, which are eligible for closures. These actions are likely to boost profitability and shareholder returns as it will not only enhance brand and store performances but also generate annualized savings of $30–$35 million.
Tilly's delivered an average positive earnings surprise of 73.7% over the trailing four quarters and has a long-term earnings growth rate of 15.5%.
The Children's Place delivered an average positive earnings surprise of 33.1% over the trailing four quarters and has a long-term earnings growth rate of 10.3%.
Urban Outfitters delivered an average positive earnings surprise of 6.7% over the trailing four quarters and has a long-term earnings growth rate of 15%.
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Deckers: A Solid Bet on Sturdy Fundamentals & Initiatives
Is Deckers Outdoor Corp. (DECK - Free Report) part of your portfolio? If not, then this might be the right time to add the stock as it looks promising. Moreover, the underlying factors are capable of carrying the momentum further. The stock carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 10.8% with a VGM Score of “A”. Additionally, the stock price has surged approximately 25% year to date. Together these factors highlight the company’s inherent strength.
Investors want their portfolio to have stocks with a track record of better-than-expected results, surging share price and a favorable recommendation, and we believe that Deckers fulfills all these criteria. It is indeed a sound investment opportunity.
Sturdy Fundamentals and Strategic Initiatives
Deckers is focused on expanding its brand assortments, bringing more innovation in its line of products, targeting consumers digitally via marketing and sturdy eCommerce, along with optimizing omni-channel distribution. All these endeavors aided the company to post better-than-expected bottom-line results for the fifth straight quarter, as it reported first-quarter fiscal 2017 results.
In an effort to speed up growth through its long-term strategies; this designer, marketer and distributor of footwear, apparel and accessories for casual lifestyle announced an organization restructuring plan. The plan focuses on realigning its brands into two groups, consolidating its brand offices for Sanuk and Ahnu brands along with optimizing its store fleet.
As part of revamping its brands, the company has begun to realign its brands into two groups, namely Fashion Lifestyle and Performance Lifestyle. The Fashion Lifestyle group will comprise of the UGG and Koolaburra brands, whereas the Performance Lifestyle group will include the Teva, Sanuk and Hoka brands.
The company’s store fleet optimization plan focuses on striking the right balance between digital and physical stores. To do this, Deckers has identified more than 20 retail locations, which are eligible for closures. These actions are likely to boost profitability and shareholder returns as it will not only enhance brand and store performances but also generate annualized savings of $30–$35 million.
DECKERS OUTDOOR Price and Consensus
DECKERS OUTDOOR Price and Consensus | DECKERS OUTDOOR Quote
Other Stocks Worth Considering
Investors may consider other favorably ranked stocks such as Tilly's, Inc. (TLYS - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Urban Outfitters Inc. (URBN - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tilly's delivered an average positive earnings surprise of 73.7% over the trailing four quarters and has a long-term earnings growth rate of 15.5%.
The Children's Place delivered an average positive earnings surprise of 33.1% over the trailing four quarters and has a long-term earnings growth rate of 10.3%.
Urban Outfitters delivered an average positive earnings surprise of 6.7% over the trailing four quarters and has a long-term earnings growth rate of 15%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>