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Deckers (DECK) Queues Up for Q3 Earnings: What's in Store?
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Deckers Outdoor Corporation (DECK - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2021 numbers on Feb 4, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $965.2 million, indicating an improvement of 2.8% from the prior-year reported figure.
However, the bottom line of this designer, marketer and distributor of footwear, apparel, and accessories is expected to decline year over year. Although the Zacks Consensus Estimate for earnings for the quarter under review has moved up by 7 cents to $7.01 over the past seven days, the figure still suggests a decline of about 1.8% from the prior-year quarter.
Notably, this Goleta, CA-based company’s bottom line has outperformed the Zacks Consensus Estimate in the trailing four quarters.
Key Factors to Note
Deckers’ third-quarter performance is likely to have benefited from omni-channel expansion endeavors, HOKA ONE ONE brand, and impressive customer-centric product and marketing strategies. The company’s focus on expanding brand assortments, introducing an innovative line of products and enhancing direct-to-consumer business contribution are likely to have acted as tailwinds. Keeping pace with the changing trends, Deckers has been constantly developing its e-commerce portal to capture incremental sales across UGG and HOKA ONE ONE brands. The company has been making substantial investments to strengthen its online presence and improve shopping experience.
However, the company has been grappling with soft sales from the Sanuk brand for a while now. On its last earnings call, management cautioned about few retail store closures across the EMEA region for at least some point in fiscal third quarter due to the volatile pandemic-induced conditions. The company also hinted about operational headwinds related to capacity constraints, including higher levels of e-commerce shipments in peak wholesale-volume periods, and elevated costs with respect to warehouse employee safety and payroll expense. The impact of these are likely to get reflected in the to-be-reported quarter’s margins.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
Our proven model does not conclusively predict a beat for Deckers this earnings season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Deckers has a Zacks Rank #2 but an Earnings ESP of -7.21%.
Stocks With a Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
L Brands has an Earnings ESP of +5.27% and a Zacks Rank #3.
Genesco (GCO - Free Report) has an Earnings ESP of +1.63% and a Zacks Rank #3.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Deckers (DECK) Queues Up for Q3 Earnings: What's in Store?
Deckers Outdoor Corporation (DECK - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2021 numbers on Feb 4, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $965.2 million, indicating an improvement of 2.8% from the prior-year reported figure.
However, the bottom line of this designer, marketer and distributor of footwear, apparel, and accessories is expected to decline year over year. Although the Zacks Consensus Estimate for earnings for the quarter under review has moved up by 7 cents to $7.01 over the past seven days, the figure still suggests a decline of about 1.8% from the prior-year quarter.
Notably, this Goleta, CA-based company’s bottom line has outperformed the Zacks Consensus Estimate in the trailing four quarters.
Key Factors to Note
Deckers’ third-quarter performance is likely to have benefited from omni-channel expansion endeavors, HOKA ONE ONE brand, and impressive customer-centric product and marketing strategies. The company’s focus on expanding brand assortments, introducing an innovative line of products and enhancing direct-to-consumer business contribution are likely to have acted as tailwinds. Keeping pace with the changing trends, Deckers has been constantly developing its e-commerce portal to capture incremental sales across UGG and HOKA ONE ONE brands. The company has been making substantial investments to strengthen its online presence and improve shopping experience.
However, the company has been grappling with soft sales from the Sanuk brand for a while now. On its last earnings call, management cautioned about few retail store closures across the EMEA region for at least some point in fiscal third quarter due to the volatile pandemic-induced conditions. The company also hinted about operational headwinds related to capacity constraints, including higher levels of e-commerce shipments in peak wholesale-volume periods, and elevated costs with respect to warehouse employee safety and payroll expense. The impact of these are likely to get reflected in the to-be-reported quarter’s margins.
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 does not conclusively predict a beat for Deckers this earnings season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Deckers has a Zacks Rank #2 but an Earnings ESP of -7.21%.
Stocks With a Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Foot Locker (FL - Free Report) has an Earnings ESP of +2.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
L Brands has an Earnings ESP of +5.27% and a Zacks Rank #3.
Genesco (GCO - Free Report) has an Earnings ESP of +1.63% and a Zacks Rank #3.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>