Back to top

Image: Bigstock

Here's Why You Should Hold on to Deckers (DECK) Stock Now

Read MoreHide Full Article

Deckers Outdoor Corporation (DECK - Free Report) continues to cheer investors with its bullish run on the bourses, thanks to its robust business strategies. DECK’s robust omni-channel endeavors, brand strength, particularly the HOKA ONE ONE label, and impressive customer-centric product and marketing strategies appear quite encouraging.

This Goleta, CA-based player’s shares have increased 22.4% over the past six months against the industry’s 20.8% decline. A Growth Score of B further speaks volumes for this Zacks Rank #3 (Hold) stock’s potential.

Let’s delve deeper.

Detailing Strategies

In keeping with the changing trends, Deckers is constantly developing its e-commerce portal to capture incremental sales. Management has been strengthening its online presence and enhancing customers’ shopping experience for a while. DECK is focused 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 to enrich customers’ shopping experience.

During the first quarter of fiscal 2023, the direct-to-consumer business grew 15%, thanks to increasing customer acquisition and retention for the HOKA ONE ONE brand. The direct-to-consumer business grew 58% at HOKA ONE ONE brand. Additionally, DECK’s focus on expanding brand assortments, introducing a more innovative line of products and restructuring initiatives are added positives.

Zacks Investment Research
Image Source: Zacks Investment Research

Talking of its brand strength, Deckers has been witnessing immense progress in HOKA ONE ONE brand. The brand continues to its build customer base through disruptive product innovation and a disciplined marketing approach. Management is steadily progressing toward building HOKA ONE ONE into a multibillion-dollar major player and plans to open additional retail stores for the brand.

HOKA ONE ONE and Foot Locker partnered to solidify the presence of the former by opening HOKA in a limited number of Foot Locker stores. Also, greater acceptance of the UGG brand's diverse product line along with its progress in Europe and the Asia Pacific bodes well. Management looks to elevate UGG as a global lifestyle brand with diverse product offerings.

What’s More?

Analysts too look optimistic about this athletic footwear and apparel company. The Zacks Consensus Estimate for earnings of $18.10 for fiscal 2023 and $21.22 for fiscal 2024 suggests growth of 11.3% and 17.2%, respectively, from the corresponding year-ago reported figures. The consensus mark for sales is currently pegged at $3.49 billion for fiscal 2023 and $3.88 billion for fiscal 2024, indicating growth of 10.8% and 11.1% from the respective year-ago fiscal quarter’s reported numbers.

Overall, Deckers’ focus on bolstering its e-commerce competencies and investments in digital marketing will continue aiding the stock. Strength in DECK’s HOKA ONE ONE label and direct-to-consumer channel will keep driving growth.

Eye These Solid Picks

Designer Brands (DBI - Free Report) designs, manufactures and retails footwear and accessories. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Designer Brands’ current financial-year revenues and earnings per share (EPS) suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago reported figures. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.

Delta Apparel (DLA - Free Report) is a manufacturer of activewear and lifestyle apparel products. DLA flaunts a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and EPS suggests growth of 14.6% and 45.8%, respectively, from the year-ago corresponding figures. DLA has a trailing four-quarter earnings surprise of 41.1%, on average.

Footwear dealer Caleres (CAL - Free Report) flaunts a Zacks Rank of 1 at present. CAL has a trailing four-quarter earnings surprise of 62.9%, on average.

The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.2% and 1.8%, respectively, from the year-ago corresponding figures.

Published in