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Here's How Much a $1000 Investment in Deckers Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Deckers (DECK - Free Report) ten years ago? It may not have been easy to hold on to DECK for all that time, but if you did, how much would your investment be worth today?
Deckers' Business In-Depth
With that in mind, let's take a look at Deckers' main business drivers.
Founded in 1973 and headquartered in Goleta, California, Deckers Outdoor Corporation is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. The company sells products primarily under five proprietary brands — UGG, HOKA, Teva, Sanuk and Other brands (mainly comprised of Koolaburra).
Its products are sold through specialty domestic retailers, international distributors and directly to end-users through its websites and catalogs. The company sells directly to global consumers through the Direct-to-Consumer (DTC) channel, which is comprised of e-commerce websites and retail stores. The brands are sold worldwide, including in the United States, Canada, Europe, Asia-Pacific and Latin America.
The UGG brand (55.9% of Q2 fiscal 24 total revenues) has proven to be a highly resilient line of premium footwear, apparel and accessories with expanded product offerings. The company intends to continue diversifying the brand to drive year-round product sales through the expansion of women’s spring and summer footwear, men’s products and apparel, home goods and accessories.
The HOKA brand (38.8% of Q2 fiscal 24 total revenues) is an authentic, premium line of year-round performance footwear, apparel and accessories.
The Teva brand’s product line (2% of Q2 fiscal 24 total revenues) includes a range of performance, casual, footwear and trail lifestyle products.
The Sanuk brand (0.5% of Q2 fiscal 24 total revenues) has manifested into a lifestyle brand with a presence in the relaxed casual shoe and sandal categories.
The company's Other brands (2.8% of Q2 fiscal 24 total revenues) is a casual footwear fashion line using sheepskin and other plush materials.
(Notes: Zacks identifies fiscal years by the month in which the fiscal year ends, while DECK identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by DECK, will refer to this same fiscal year as being the year before the same year, as identified by Zacks.)
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Deckers ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $8,271.84, or a 727.18% gain, as of December 21, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 158.39% and the price of gold went up 63.82% over the same time frame.
Analysts are forecasting more upside for DECK too.
Shares of Deckers have risen and outpaced the industry in the past one year. The company put on another impressive show in second-quarter fiscal 2024. The quarter marked the eighth straight positive sales and earnings surprise. Both the top and bottom lines grew year over year. Strength in the UGG and HOKA brands contributed to the results. Solid gains from the direct-to-consumer (“DTC”) channels, brand growth, a strong balance sheet and a stable operating model poise Deckers well for success. Solid momentum in its global wholesale business, driven by robust consumer demand in both domestic and international markets, appears encouraging as well. It envisions fiscal 2024 net sales to increase 11% from the prior year quarter. We expect net sales of UGG and HOKA brand to increase 6.4% and 22.3% respectively in fiscal 2024.
The stock is up 10.80% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Deckers Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Deckers (DECK - Free Report) ten years ago? It may not have been easy to hold on to DECK for all that time, but if you did, how much would your investment be worth today?
Deckers' Business In-Depth
With that in mind, let's take a look at Deckers' main business drivers.
Founded in 1973 and headquartered in Goleta, California, Deckers Outdoor Corporation is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. The company sells products primarily under five proprietary brands — UGG, HOKA, Teva, Sanuk and Other brands (mainly comprised of Koolaburra).
Its products are sold through specialty domestic retailers, international distributors and directly to end-users through its websites and catalogs. The company sells directly to global consumers through the Direct-to-Consumer (DTC) channel, which is comprised of e-commerce websites and retail stores. The brands are sold worldwide, including in the United States, Canada, Europe, Asia-Pacific and Latin America.
The UGG brand (55.9% of Q2 fiscal 24 total revenues) has proven to be a highly resilient line of premium footwear, apparel and accessories with expanded product offerings. The company intends to continue diversifying the brand to drive year-round product sales through the expansion of women’s spring and summer footwear, men’s products and apparel, home goods and accessories.
The HOKA brand (38.8% of Q2 fiscal 24 total revenues) is an authentic, premium line of year-round performance footwear, apparel and accessories.
The Teva brand’s product line (2% of Q2 fiscal 24 total revenues) includes a range of performance, casual, footwear and trail lifestyle products.
The Sanuk brand (0.5% of Q2 fiscal 24 total revenues) has manifested into a lifestyle brand with a presence in the relaxed casual shoe and sandal categories.
The company's Other brands (2.8% of Q2 fiscal 24 total revenues) is a casual footwear fashion line using sheepskin and other plush materials.
(Notes: Zacks identifies fiscal years by the month in which the fiscal year ends, while DECK identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by DECK, will refer to this same fiscal year as being the year before the same year, as identified by Zacks.)
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Deckers ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $8,271.84, or a 727.18% gain, as of December 21, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 158.39% and the price of gold went up 63.82% over the same time frame.
Analysts are forecasting more upside for DECK too.
Shares of Deckers have risen and outpaced the industry in the past one year. The company put on another impressive show in second-quarter fiscal 2024. The quarter marked the eighth straight positive sales and earnings surprise. Both the top and bottom lines grew year over year. Strength in the UGG and HOKA brands contributed to the results. Solid gains from the direct-to-consumer (“DTC”) channels, brand growth, a strong balance sheet and a stable operating model poise Deckers well for success. Solid momentum in its global wholesale business, driven by robust consumer demand in both domestic and international markets, appears encouraging as well. It envisions fiscal 2024 net sales to increase 11% from the prior year quarter. We expect net sales of UGG and HOKA brand to increase 6.4% and 22.3% respectively in fiscal 2024.
The stock is up 10.80% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2023. The consensus estimate has moved up as well.