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Here's Why Deckers (DECK) Stock Seems a Promising Bet Now
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Deckers Outdoor Corporation (DECK - Free Report) stock has been doing well on bourses, thanks to its efforts related to product innovations, store expansion and enhancement of e-commerce capabilities. DECK’s focus on expanding its brand assortments, bringing a more innovative line of products and optimizing omnichannel distribution bode well.
Buoyed by the aforesaid tailwinds, this major footwear and accessories designer shares have appreciated 43.5%, comfortably outperforming the industry’s 15.9% growth. An impressive long-term projected growth rate of 18% further highlights the strength of this current Zacks Rank #2 (Buy) stock.
In addition, analysts seem optimistic about the stock. The Zacks Consensus Estimate for Deckers’ fiscal 2023 sales and earnings per share (EPS) is currently pegged at $3.50 billion and $18.11, respectively. These estimates suggest growth of 11.2% and 11.4%, respectively, from the year-ago fiscal quarter’s corresponding figures. The consensus estimate for next fiscal year’s sales and EPS of $3.86 billion and $21.19, respectively reflects a corresponding increase of 10.1% and 17% year over year.
Let’s Delve Deep
Deckers is targeting profitable and underpenetrated markets to boost overall sales. Greater acceptance of the UGG brand's diverse product line along with the progress in Europe and Asia Pacific bode well. The HOKA ONE ONE brand is also performing impressively. The brand continues to build its customer base through a combination of robust product innovation and a disciplined marketing approach.
Image Source: Zacks Investment Research
Deckers is progressing toward building HOKA ONE ONE into a major multibillion-dollar player, elevating UGG as a global lifestyle brand with diverse product offerings and enhancing direct-to-consumer (DTC) business. The company plans to open additional retail stores for the HOKA brand and to continue exploring opportunities to strategically expand the brand’s retail store fleet.
Management has also been constantly developing its e-commerce portal to efficiently resonate with the evolving trends. The company is focused on opening smaller concept omnichannel 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.
Markedly, DTC revenues grew 26% during the first half of fiscal 2023. HOKA continues to be a key driver of consolidated growth. The brand's growth rate increased in the fiscal second quarter, reflecting an overall increase of 66% in the first half. UGG also contributed to the first-half performance, as the brand reverted to growth in the second quarter, leading to a 4% jump for the brand in the first half.
Furthermore, Deckers is focused on product and marketing strategies that are more skewed toward customers. The company has also been focusing on expanding its product categories per the customer purchasing trends that differ with the weather. Its brand strength also bodes well. During the second-quarter fiscal 2023, HOKA ONE ONE brand net sales surged 58.3% while UGG brand net sales grew 6.3% and Teva brand net sales increased 4.3% year over year.
We believe that the company’s focus on ramping up inventory, optimizing channel mix to fulfill consumer demand, scaling production to support brands and implementing price increases should position it well for growth.
Eye These Solid Picks Too
Here we highlighted three other top-ranked stocks, namely, Oxford Industries (OXM - Free Report) , lululemon athletica (LULU - Free Report) and Ralph Lauren (RL - Free Report) .
Oxford Industries, which designs, sources, markets and distributes lifestyle products and other brands, sports a Zacks Rank #1 (Strong Buy). Oxford Industries has a trailing four-quarter earnings surprise of 18.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OXM’s current financial-year sales and EPS suggests growth of 23.3% and 34.4% from the year-ago reported numbers.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 28.3% and 27.2%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 28.7%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s next financial-year sales and EPS suggests growth of 5% and 13.4%, respectively, from the year-ago corresponding figures.
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Here's Why Deckers (DECK) Stock Seems a Promising Bet Now
Deckers Outdoor Corporation (DECK - Free Report) stock has been doing well on bourses, thanks to its efforts related to product innovations, store expansion and enhancement of e-commerce capabilities. DECK’s focus on expanding its brand assortments, bringing a more innovative line of products and optimizing omnichannel distribution bode well.
Buoyed by the aforesaid tailwinds, this major footwear and accessories designer shares have appreciated 43.5%, comfortably outperforming the industry’s 15.9% growth. An impressive long-term projected growth rate of 18% further highlights the strength of this current Zacks Rank #2 (Buy) stock.
In addition, analysts seem optimistic about the stock. The Zacks Consensus Estimate for Deckers’ fiscal 2023 sales and earnings per share (EPS) is currently pegged at $3.50 billion and $18.11, respectively. These estimates suggest growth of 11.2% and 11.4%, respectively, from the year-ago fiscal quarter’s corresponding figures. The consensus estimate for next fiscal year’s sales and EPS of $3.86 billion and $21.19, respectively reflects a corresponding increase of 10.1% and 17% year over year.
Let’s Delve Deep
Deckers is targeting profitable and underpenetrated markets to boost overall sales. Greater acceptance of the UGG brand's diverse product line along with the progress in Europe and Asia Pacific bode well. The HOKA ONE ONE brand is also performing impressively. The brand continues to build its customer base through a combination of robust product innovation and a disciplined marketing approach.
Image Source: Zacks Investment Research
Deckers is progressing toward building HOKA ONE ONE into a major multibillion-dollar player, elevating UGG as a global lifestyle brand with diverse product offerings and enhancing direct-to-consumer (DTC) business. The company plans to open additional retail stores for the HOKA brand and to continue exploring opportunities to strategically expand the brand’s retail store fleet.
Management has also been constantly developing its e-commerce portal to efficiently resonate with the evolving trends. The company is focused on opening smaller concept omnichannel 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.
Markedly, DTC revenues grew 26% during the first half of fiscal 2023. HOKA continues to be a key driver of consolidated growth. The brand's growth rate increased in the fiscal second quarter, reflecting an overall increase of 66% in the first half. UGG also contributed to the first-half performance, as the brand reverted to growth in the second quarter, leading to a 4% jump for the brand in the first half.
Furthermore, Deckers is focused on product and marketing strategies that are more skewed toward customers. The company has also been focusing on expanding its product categories per the customer purchasing trends that differ with the weather. Its brand strength also bodes well. During the second-quarter fiscal 2023, HOKA ONE ONE brand net sales surged 58.3% while UGG brand net sales grew 6.3% and Teva brand net sales increased 4.3% year over year.
We believe that the company’s focus on ramping up inventory, optimizing channel mix to fulfill consumer demand, scaling production to support brands and implementing price increases should position it well for growth.
Eye These Solid Picks Too
Here we highlighted three other top-ranked stocks, namely, Oxford Industries (OXM - Free Report) , lululemon athletica (LULU - Free Report) and Ralph Lauren (RL - Free Report) .
Oxford Industries, which designs, sources, markets and distributes lifestyle products and other brands, sports a Zacks Rank #1 (Strong Buy). Oxford Industries has a trailing four-quarter earnings surprise of 18.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OXM’s current financial-year sales and EPS suggests growth of 23.3% and 34.4% from the year-ago reported numbers.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 28.3% and 27.2%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 28.7%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s next financial-year sales and EPS suggests growth of 5% and 13.4%, respectively, from the year-ago corresponding figures.