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Deckers' (DECK) Growth Efforts Hold Promise: Time to Buy?
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With consistent focus on expanding its brand assortments, targeting consumers digitally via marketing and sturdy eCommerce, along with optimizing omni-channel distribution, Deckers Outdoor Corporation (DECK - Free Report) remains confident of sustaining its growth momentum. In addition, its restructuring plan – focused on the realignment of its brands into two groups, consolidating its brand offices for Sanuk and Ahnu brands and optimizing its store fleet – is boding well.
Thanks to these attributes, which have not only aided the stock to outperform the Zacks categorized industry, but also helped Deckers post positive earnings surprise for the sixth straight quarter, as it reported second-quarter fiscal 2017 results. The stock has yielded a return of 17.2% year to date, against the Zacks categorized Shoes and Retail Apparel industry’s decline of 15.7%. Moreover, the company carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 9%, which further boost investors’ confidence in the stock.
Deckers targets profitable and underpenetrated markets, along with focus on product innovations and store augmentation. Further, management is transitioning to a direct subsidiary model from a distributor model outside the U.S. The company is also making substantial investments to fortify its online presence. Deckers focuses on opening smaller concept omni-channel outlets and expanding programs, such as Retail Inventory Online; Infinite UGG; Buy Online, Return In Store; and Click and Collect, in a bid to enhance customers’ shopping experience.
However, Deckers’ sales dipped year over year and fell short of the Zacks Consensus Estimate, after surpassing the same in the preceding two quarters, when it posted fiscal second-quarter results. Moreover, management trimmed its fiscal 2017 outlook amid a tough retail landscape.
Nonetheless, we believe that the aforementioned strategic endeavors will help Deckers to capture incremental sales, boost profitability and enhance shareholder returns, going forward. Additionally, estimates have been largely stable ahead of the third-quarter fiscal earnings release.
Other Stocks You May Consider
Other favorably placed stocks in the same industry include Francesca's Holdings Corporation , Caleres, Inc. (CAL - Free Report) and Weyco Group, Inc. (WEYS - Free Report) .
Francesca's Holdings, with a long-term earnings growth rate of 13.8%, has surged 66.1% in the past six months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Caleres, which carries a Zacks Rank #2, has a long-term earnings growth rate of 11%. The stock has gained 37% in the past six months.
Weyco Group, a Zacks Rank #2 stock, has climbed 16.8% year to date.
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Deckers' (DECK) Growth Efforts Hold Promise: Time to Buy?
With consistent focus on expanding its brand assortments, targeting consumers digitally via marketing and sturdy eCommerce, along with optimizing omni-channel distribution, Deckers Outdoor Corporation (DECK - Free Report) remains confident of sustaining its growth momentum. In addition, its restructuring plan – focused on the realignment of its brands into two groups, consolidating its brand offices for Sanuk and Ahnu brands and optimizing its store fleet – is boding well.
Thanks to these attributes, which have not only aided the stock to outperform the Zacks categorized industry, but also helped Deckers post positive earnings surprise for the sixth straight quarter, as it reported second-quarter fiscal 2017 results. The stock has yielded a return of 17.2% year to date, against the Zacks categorized Shoes and Retail Apparel industry’s decline of 15.7%. Moreover, the company carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 9%, which further boost investors’ confidence in the stock.
Deckers targets profitable and underpenetrated markets, along with focus on product innovations and store augmentation. Further, management is transitioning to a direct subsidiary model from a distributor model outside the U.S. The company is also making substantial investments to fortify its online presence. Deckers focuses on opening smaller concept omni-channel outlets and expanding programs, such as Retail Inventory Online; Infinite UGG; Buy Online, Return In Store; and Click and Collect, in a bid to enhance customers’ shopping experience.
However, Deckers’ sales dipped year over year and fell short of the Zacks Consensus Estimate, after surpassing the same in the preceding two quarters, when it posted fiscal second-quarter results. Moreover, management trimmed its fiscal 2017 outlook amid a tough retail landscape.
DECKERS OUTDOOR Price and Consensus
DECKERS OUTDOOR Price and Consensus | DECKERS OUTDOOR Quote
Nonetheless, we believe that the aforementioned strategic endeavors will help Deckers to capture incremental sales, boost profitability and enhance shareholder returns, going forward. Additionally, estimates have been largely stable ahead of the third-quarter fiscal earnings release.
Other Stocks You May Consider
Other favorably placed stocks in the same industry include Francesca's Holdings Corporation , Caleres, Inc. (CAL - Free Report) and Weyco Group, Inc. (WEYS - Free Report) .
Francesca's Holdings, with a long-term earnings growth rate of 13.8%, has surged 66.1% in the past six months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Caleres, which carries a Zacks Rank #2, has a long-term earnings growth rate of 11%. The stock has gained 37% in the past six months.
Weyco Group, a Zacks Rank #2 stock, has climbed 16.8% year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>