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Reasons to Add Deckers Outdoor (DECK) to Your Portfolio Now
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Deckers Outdoor Corporation (DECK - Free Report) is well poised for growth, courtesy of strength across its businesses, focus on strategic priorities, robust omni-channel capabilities and shareholder-friendly policies. The company has also been benefiting from its growing Direct-to-Consumer (“DTC”) business.
This Zacks Rank #2 (Buy) company has a market capitalization of $17.9 billion.
Over the past three months, its shares have risen 31.7% compared with the industry’s growth of 11.5%.
Image Source: Zacks Investment Research
The consensus estimate for the current and next fiscal year has increased 1 penny and 4 cents to $23.42 and $26.44, respectively, over the past seven days.
Let’s delve into the factors that have been aiding this manufacturer of niche footwear and accessories for a while now.
Deckers Outdoor has been targeting profitable and underpenetrated markets and remains focused on product innovations, store expansion and enhancement of e-commerce capabilities. The company’s focus on expanding its brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omni-channel distribution bodes well. It is leveraging digital channels to effectively reach and engage consumers, optimizing its omni-channel distribution for increased accessibility.
DECK has made substantial investments to strengthen its online presence and improve shopping experience for its customers. It remains 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 enhance customer shopping experience.
Deckers Outdoor has been reaping the benefits of favorable trends and momentum across the HOKA DTC channel and broad-based UGG growth across regions and channels. In the second quarter of fiscal 2024, Deckers’ DTC business was the fastest-growing component of revenue growth, increasing 40% year over year, as HOKA and UGG brands witnessed more than 30% growth in consumer acquisition. In the quarter, the UGG and HOKA brands’ net sales climbed 28.1% and 27.3%, respectively.
DECK has also been experiencing strength in its global wholesale business, driven by robust consumer demand for UGG and HOKA brands in both domestic and international markets. For instance, in second-quarter fiscal 2024, its wholesale net sales increased by 19.4% year over year to $760.2 million.
Driven by the sustained global brand momentum and strong product demand, it raised its financial outlook for fiscal 2024. The company expects fiscal 2024 net sales to be $4,025 million, up from the earlier mentioned $3,980 million. This suggests an increase of 11% from the $3,627 million reported in fiscal 2023. It projects fiscal 2024 earnings of $22.90-$23.25 per share, up from the formerly stated $21.75-$22.25. Deckers reported earnings of $19.37 per share in fiscal 2023.
3 Other Red-Hot Stocks
Some other top-ranked stocks from the same industry are Abercrombie & Fitch Co. (ANF - Free Report) , MINISO Group Holding Limited (MNSO - Free Report) and American Eagle Outfitters (AEO - Free Report) . While Abercrombie & Fitch and MINISO Group sport a Zacks Rank #1 (Strong Buy) each, American Eagle Outfitters carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The Zacks Consensus Estimate for ANF’s current fiscal-year sales implies growth of 12.8% from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 713%.
MINISO Group operates as a retailer and wholesaler of lifestyle products. The Zacks Consensus Estimate for MNSO’s current financial-year earnings per share and sales implies growth of 43.6% and 29.9%, respectively, from the previous year's reported figure.
American Eagle Outfitters is a retailer of casual apparel, accessories and footwear. The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS indicates growth of 3.9% and 39.2%, respectively, from the year-ago reported figure. AEO has a trailing four-quarter average earnings surprise of 23%.
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Reasons to Add Deckers Outdoor (DECK) to Your Portfolio Now
Deckers Outdoor Corporation (DECK - Free Report) is well poised for growth, courtesy of strength across its businesses, focus on strategic priorities, robust omni-channel capabilities and shareholder-friendly policies. The company has also been benefiting from its growing Direct-to-Consumer (“DTC”) business.
This Zacks Rank #2 (Buy) company has a market capitalization of $17.9 billion.
Over the past three months, its shares have risen 31.7% compared with the industry’s growth of 11.5%.
Image Source: Zacks Investment Research
The consensus estimate for the current and next fiscal year has increased 1 penny and 4 cents to $23.42 and $26.44, respectively, over the past seven days.
Let’s delve into the factors that have been aiding this manufacturer of niche footwear and accessories for a while now.
Deckers Outdoor has been targeting profitable and underpenetrated markets and remains focused on product innovations, store expansion and enhancement of e-commerce capabilities. The company’s focus on expanding its brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omni-channel distribution bodes well. It is leveraging digital channels to effectively reach and engage consumers, optimizing its omni-channel distribution for increased accessibility.
DECK has made substantial investments to strengthen its online presence and improve shopping experience for its customers. It remains 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 enhance customer shopping experience.
Deckers Outdoor has been reaping the benefits of favorable trends and momentum across the HOKA DTC channel and broad-based UGG growth across regions and channels. In the second quarter of fiscal 2024, Deckers’ DTC business was the fastest-growing component of revenue growth, increasing 40% year over year, as HOKA and UGG brands witnessed more than 30% growth in consumer acquisition. In the quarter, the UGG and HOKA brands’ net sales climbed 28.1% and 27.3%, respectively.
DECK has also been experiencing strength in its global wholesale business, driven by robust consumer demand for UGG and HOKA brands in both domestic and international markets. For instance, in second-quarter fiscal 2024, its wholesale net sales increased by 19.4% year over year to $760.2 million.
Driven by the sustained global brand momentum and strong product demand, it raised its financial outlook for fiscal 2024. The company expects fiscal 2024 net sales to be $4,025 million, up from the earlier mentioned $3,980 million. This suggests an increase of 11% from the $3,627 million reported in fiscal 2023. It projects fiscal 2024 earnings of $22.90-$23.25 per share, up from the formerly stated $21.75-$22.25. Deckers reported earnings of $19.37 per share in fiscal 2023.
3 Other Red-Hot Stocks
Some other top-ranked stocks from the same industry are Abercrombie & Fitch Co. (ANF - Free Report) , MINISO Group Holding Limited (MNSO - Free Report) and American Eagle Outfitters (AEO - Free Report) . While Abercrombie & Fitch and MINISO Group sport a Zacks Rank #1 (Strong Buy) each, American Eagle Outfitters carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The Zacks Consensus Estimate for ANF’s current fiscal-year sales implies growth of 12.8% from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 713%.
MINISO Group operates as a retailer and wholesaler of lifestyle products. The Zacks Consensus Estimate for MNSO’s current financial-year earnings per share and sales implies growth of 43.6% and 29.9%, respectively, from the previous year's reported figure.
American Eagle Outfitters is a retailer of casual apparel, accessories and footwear. The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS indicates growth of 3.9% and 39.2%, respectively, from the year-ago reported figure. AEO has a trailing four-quarter average earnings surprise of 23%.