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Deckers (DECK) to Report Q1 Earnings: What's in the Cards?

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Deckers Outdoor Corporation (DECK - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2022 numbers on Jul 29, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $398.2 million, indicating an improvement of 40.6% from the prior-year reported figure.

The bottom line of this designer, marketer and distributor of footwear, apparel, and accessories is expected to improve year over year. We note that the Zacks Consensus Estimate for loss for the quarter under review has narrowed to 4 cents from 25 cents over the past seven days. The figure suggests a sharp improvement from a loss of 28 cents reported in the year-ago period.

Notably, this Goleta, CA-based company has a trailing four-quarter earnings surprise of 60.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin of 103.5%.

Key Factors to Note

Deckers’ first-quarter performance is likely to have benefited from acceleration of omni-channel capabilities, investment in supply chain and logistics infrastructure, and 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 enhance shopping experience.

We note that the Zacks Consensus Estimate for first-quarter revenues at UGG, HOKA ONE ONE, Teva and Sanuk brands are pegged at $162 million, $160 million, $41.4 million and $13.9 million, indicating increase of 29.9%, 46.8%, 17.6% and 5.3% year over year, respectively.

In spite of aforementioned tailwinds, adverse impacts stemming from higher freight costs cannot be ruled out. Any increase in marketing expenses as well as warehouse and logistics costs might get reflected in margins.

 

Deckers Outdoor Corporation Price, Consensus and EPS Surprise

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 predicts an earnings beat for Deckers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances 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 #3 and an Earnings ESP of +41.18%.

Other Stocks With Favorable Combination

Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:

Foot Locker (FL - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +3.92% and a Zacks Rank #3.

Capri Holdings Limited (CPRI - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3.