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Deckers (DECK) Thrives on Brand Expansion & Strong Marketing
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Deckers Outdoor Corporation’s (DECK - Free Report) strategic endeavors, including its focus on brand expansion, robust direct-to-consumer (DTC) business, customer-centric strategies and solid financial standing, position it for sustained growth and success in the competitive footwear and lifestyle brand market. Notably, DECK's global wholesale business is gaining substantial momentum. To stay attuned to customer preferences, the company is adjusting its product categories to align with the evolving purchasing trends.
Image Source: Zacks Investment Research
DTC Business and Omni-Channel Expansion Robust
Deckers' DTC business has been a key growth driver, with a 40% increase in the second quarter of fiscal 2024. This rise is attributed to more than 30% growth in consumer acquisition for the UGG and HOKA brands.
The company's consolidated revenues increased 24.7% to $1,092 million in the fiscal second quarter, reflecting strong performance across the DTC channel. Deckers is also enhancing its online presence and customer shopping experience through various omni-channel strategies.
In response to the evolving market trends, Deckers has been actively refining its e-commerce platform to capture additional sales. Additionally, the company is focusing on smaller-concept omni-channel outlets and various programs like Retail Inventory Online and Infinite UGG to enrich the customer shopping experience.
Wholesale Business Momentum Bodes Well
Deckers’ global wholesale business is experiencing strong momentum, driven by market share gains, and robust demand for its UGG and HOKA brands. The company’s wholesale net sales saw a 19.4% year-over-year increase to $760.2 million in the second quarter of fiscal 2024.
The success of the UGG and HOKA brands is highlighted by their impressive year-over-year growth rates of 28.1% and 27.3% in the fiscal second quarter, respectively, contributing to overall consolidated revenue growth of 24.7%.
The HOKA brand is expected to see growth of more than 20% in fiscal 2024, with the majority of the increase likely to come from the brand's DTC business. UGG's revenues are anticipated to rise in the mid-single digits, supported by sustained global brand momentum and robust demand.
Outlook Impressive
Deckers' dedication to disciplined management of brand marketplaces and an adaptable operating model strengthen its belief in meeting the full-year expectations.
DECK 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. The company projects fiscal 2024 earnings of $22.90-$23.25 per share, up from the formerly stated $21.75-$22.25. Notably, Deckers reported earnings of $19.37 per share in fiscal 2023.
The company is also expecting an improvement in its profitability in fiscal 2024. The gross margin is expected to be 52.5-53%, up from the previously mentioned 52%, indicating a year-over-year expansion of 220-270 basis points. The operating margin is expected to be 18.5%, suggesting a rise from the previous year’s reported figure of 18%.
Deckers is thriving on substantial growth in its direct-to-consumer sector, particularly with the UGG and HOKA brands. Its success is bolstered by improved e-commerce and omni-channel initiatives. The robust wholesale performance and optimistic financial forecasts, marked by rising net sales and earnings, suggest a strong and prosperous outlook for the company.
DECK has exhibited a decent run on the bourses in the past year. In the said period, shares of this Zacks Rank #2 (Buy) company have surged 75.9% compared with the Zacks Retail-Apparel and Shoes industry’s growth of 23.2%.
3 Other Promising Stocks
A few other top-ranked stocks in the same space are The Gap, Inc. (GPS - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and American Eagle Outfitters Inc. (AEO - Free Report) .
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. The company currently sports a Zacks Rank #1 (Strong Buy). GPS delivered a significant earnings surprise in the last reported quarter.
The Zacks Consensus Estimate for The Gap’s current fiscal-year earnings implies growth of 387.5% from the previous year’s reported number. GPS has a trailing four-quarter average earnings surprise of 137.9%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently flaunts a Zacks Rank #1. ANF delivered a 60.5% earnings surprise in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales implies growth of 13.3% from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 713%.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear for men and women. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 39.2% and 4%, respectively, from the previous year’s reported figures. AEO has a trailing four-quarter average earnings surprise of 23%.
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Deckers (DECK) Thrives on Brand Expansion & Strong Marketing
Deckers Outdoor Corporation’s (DECK - Free Report) strategic endeavors, including its focus on brand expansion, robust direct-to-consumer (DTC) business, customer-centric strategies and solid financial standing, position it for sustained growth and success in the competitive footwear and lifestyle brand market. Notably, DECK's global wholesale business is gaining substantial momentum. To stay attuned to customer preferences, the company is adjusting its product categories to align with the evolving purchasing trends.
Image Source: Zacks Investment Research
DTC Business and Omni-Channel Expansion Robust
Deckers' DTC business has been a key growth driver, with a 40% increase in the second quarter of fiscal 2024. This rise is attributed to more than 30% growth in consumer acquisition for the UGG and HOKA brands.
The company's consolidated revenues increased 24.7% to $1,092 million in the fiscal second quarter, reflecting strong performance across the DTC channel. Deckers is also enhancing its online presence and customer shopping experience through various omni-channel strategies.
In response to the evolving market trends, Deckers has been actively refining its e-commerce platform to capture additional sales. Additionally, the company is focusing on smaller-concept omni-channel outlets and various programs like Retail Inventory Online and Infinite UGG to enrich the customer shopping experience.
Wholesale Business Momentum Bodes Well
Deckers’ global wholesale business is experiencing strong momentum, driven by market share gains, and robust demand for its UGG and HOKA brands. The company’s wholesale net sales saw a 19.4% year-over-year increase to $760.2 million in the second quarter of fiscal 2024.
The success of the UGG and HOKA brands is highlighted by their impressive year-over-year growth rates of 28.1% and 27.3% in the fiscal second quarter, respectively, contributing to overall consolidated revenue growth of 24.7%.
The HOKA brand is expected to see growth of more than 20% in fiscal 2024, with the majority of the increase likely to come from the brand's DTC business. UGG's revenues are anticipated to rise in the mid-single digits, supported by sustained global brand momentum and robust demand.
Outlook Impressive
Deckers' dedication to disciplined management of brand marketplaces and an adaptable operating model strengthen its belief in meeting the full-year expectations.
DECK 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. The company projects fiscal 2024 earnings of $22.90-$23.25 per share, up from the formerly stated $21.75-$22.25. Notably, Deckers reported earnings of $19.37 per share in fiscal 2023.
The company is also expecting an improvement in its profitability in fiscal 2024. The gross margin is expected to be 52.5-53%, up from the previously mentioned 52%, indicating a year-over-year expansion of 220-270 basis points. The operating margin is expected to be 18.5%, suggesting a rise from the previous year’s reported figure of 18%.
Deckers is thriving on substantial growth in its direct-to-consumer sector, particularly with the UGG and HOKA brands. Its success is bolstered by improved e-commerce and omni-channel initiatives. The robust wholesale performance and optimistic financial forecasts, marked by rising net sales and earnings, suggest a strong and prosperous outlook for the company.
DECK has exhibited a decent run on the bourses in the past year. In the said period, shares of this Zacks Rank #2 (Buy) company have surged 75.9% compared with the Zacks Retail-Apparel and Shoes industry’s growth of 23.2%.
3 Other Promising Stocks
A few other top-ranked stocks in the same space are The Gap, Inc. (GPS - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and American Eagle Outfitters Inc. (AEO - Free Report) .
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. The company currently sports a Zacks Rank #1 (Strong Buy). GPS delivered a significant earnings surprise in the last reported quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Gap’s current fiscal-year earnings implies growth of 387.5% from the previous year’s reported number. GPS has a trailing four-quarter average earnings surprise of 137.9%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently flaunts a Zacks Rank #1. ANF delivered a 60.5% earnings surprise in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales implies growth of 13.3% from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 713%.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear for men and women. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 39.2% and 4%, respectively, from the previous year’s reported figures. AEO has a trailing four-quarter average earnings surprise of 23%.