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Deckers (DECK) Marches Ahead of Its Industry: Here's Why
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Deckers Outdoor Corporation (DECK - Free Report) has exhibited a decent run on the bourses in the past year. The stock has outpaced the Zacks Retail-Apparel and Shoes industry, owing to its Key strategic initiatives, including product innovation and brand assortment expansion, coupled with a robust focus on direct-to-consumer (DTC) channels. In the said period, shares of this Zacks Rank #1 (Strong Buy) company have surged 115.5% compared with the industry’s growth of 28.7%.
The Zacks Consensus Estimate for the current and next fiscal years’ earnings per share is pegged at $26.85 and $29.71, indicating 38.6% and 10.6% year-over-year growth, respectively. The Zacks Consensus Estimate for the current and next fiscal years’ sales is pegged at $4.2 billion and $4.64 billion, indicating 15.7% and 10.7% year-over-year increases, respectively.
Image Source: Zacks Investment Research
Strong DTC Business & Omni-Channel Expansion
Deckers has showcased a strong performance in its DTC segment and an aggressive approach to expanding its presence across multiple channels. In the third quarter of fiscal 2024, the company's DTC revenues witnessed a remarkable increase of 22.7%, accounting for an unprecedented 55% of the total revenues. This significant improvement highlights Deckers' effectiveness in connecting with customers through diverse platforms.
Additionally, the company's focus on tailoring product development, marketing strategies and omni-channel distribution to meet consumer demand has delivered notable outcomes, enhanced immediate operational results and supported the broader strategic vision of the brand.
With initiatives like opening stores and venturing into new markets, Deckers is dedicated to improving accessibility to its brand and enriching the customer experience across various interfaces. By continuing to invest in its DTC capabilities and broadening its omni-channel reach, the company is poised for ongoing expansion and deeper market engagement.
Wholesale Business - A Key Driver
Deckers' wholesale operations have significantly contributed to the company's revenues and overall expansion. Despite the challenges posed by market dynamics, the wholesale division has shown impressive resilience, especially in critical markets such as the United States and Europe. In the fiscal third quarter, there was an 8.6% year-over-year increase in wholesale revenues, indicating the channel's effectiveness in generating additional sales.
This achievement highlights the enduring appeal of Deckers' brand portfolio and its capacity to maintain strong relationships with retail partners. Furthermore, the wholesale segment is essential for broadening the company's market presence and boosting brand recognition worldwide.
Impressive Outlook
Deckers' dedication to disciplined management of brand marketplaces and an adaptable operating model strengthens its belief in meeting full-year expectations.
DECK expects net sales of $4,150 million for fiscal 2024, up from the earlier mentioned $4,025 million. This suggests an increase of 14% from the $3,627 million reported in fiscal 2023. The company projects fiscal 2024 earnings of $26.25-$26.50 per share, up from the formerly stated $22.90-$23.25. 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 anticipated to be 54.5%, up from the previously mentioned 52.5-53%, indicating a year-over-year expansion of 420 basis points. The operating margin is expected to be 20%, suggesting a rise from the previous year’s reported figure of 18%.
Deckers is excelling due to significant growth in its direct-to-consumer channel, notably with the UGG and HOKA brands, and strengthened by effective e-commerce and omni-channel efforts. Coupled with a solid wholesale performance and positive financial outlook, including rising net sales and earnings, the company is poised for a prosperous future.
3 Other Promising Stocks
Here, we have highlighted three other top-ranked stocks, namely Chewy, Inc. (CHWY - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) .
Chewy, a trusted destination for pet parents and partners everywhere, sports a Zacks Rank #1 at present. CHWY has a trailing four-quarter earnings surprise of 234.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chewy’s current financial-year sales and earnings suggests growth of 10.3% and 11.3%, respectively, from the year-ago reported numbers.
Costco, which operates membership warehouses, currently carries a Zacks Rank #2 (Buy). COST has a trailing four-quarter earnings surprise of 2.6%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings suggests growth of 4.7% and 6.9%, respectively, from the year-ago reported numbers.
Grocery Outlet, a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. GO has a trailing four-quarter earnings surprise of 17%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 9.4% each from the year-ago reported numbers.
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Deckers (DECK) Marches Ahead of Its Industry: Here's Why
Deckers Outdoor Corporation (DECK - Free Report) has exhibited a decent run on the bourses in the past year. The stock has outpaced the Zacks Retail-Apparel and Shoes industry, owing to its Key strategic initiatives, including product innovation and brand assortment expansion, coupled with a robust focus on direct-to-consumer (DTC) channels. In the said period, shares of this Zacks Rank #1 (Strong Buy) company have surged 115.5% compared with the industry’s growth of 28.7%.
The Zacks Consensus Estimate for the current and next fiscal years’ earnings per share is pegged at $26.85 and $29.71, indicating 38.6% and 10.6% year-over-year growth, respectively. The Zacks Consensus Estimate for the current and next fiscal years’ sales is pegged at $4.2 billion and $4.64 billion, indicating 15.7% and 10.7% year-over-year increases, respectively.
Image Source: Zacks Investment Research
Strong DTC Business & Omni-Channel Expansion
Deckers has showcased a strong performance in its DTC segment and an aggressive approach to expanding its presence across multiple channels. In the third quarter of fiscal 2024, the company's DTC revenues witnessed a remarkable increase of 22.7%, accounting for an unprecedented 55% of the total revenues. This significant improvement highlights Deckers' effectiveness in connecting with customers through diverse platforms.
Additionally, the company's focus on tailoring product development, marketing strategies and omni-channel distribution to meet consumer demand has delivered notable outcomes, enhanced immediate operational results and supported the broader strategic vision of the brand.
With initiatives like opening stores and venturing into new markets, Deckers is dedicated to improving accessibility to its brand and enriching the customer experience across various interfaces. By continuing to invest in its DTC capabilities and broadening its omni-channel reach, the company is poised for ongoing expansion and deeper market engagement.
Wholesale Business - A Key Driver
Deckers' wholesale operations have significantly contributed to the company's revenues and overall expansion. Despite the challenges posed by market dynamics, the wholesale division has shown impressive resilience, especially in critical markets such as the United States and Europe. In the fiscal third quarter, there was an 8.6% year-over-year increase in wholesale revenues, indicating the channel's effectiveness in generating additional sales.
This achievement highlights the enduring appeal of Deckers' brand portfolio and its capacity to maintain strong relationships with retail partners. Furthermore, the wholesale segment is essential for broadening the company's market presence and boosting brand recognition worldwide.
Impressive Outlook
Deckers' dedication to disciplined management of brand marketplaces and an adaptable operating model strengthens its belief in meeting full-year expectations.
DECK expects net sales of $4,150 million for fiscal 2024, up from the earlier mentioned $4,025 million. This suggests an increase of 14% from the $3,627 million reported in fiscal 2023. The company projects fiscal 2024 earnings of $26.25-$26.50 per share, up from the formerly stated $22.90-$23.25. 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 anticipated to be 54.5%, up from the previously mentioned 52.5-53%, indicating a year-over-year expansion of 420 basis points. The operating margin is expected to be 20%, suggesting a rise from the previous year’s reported figure of 18%.
Deckers is excelling due to significant growth in its direct-to-consumer channel, notably with the UGG and HOKA brands, and strengthened by effective e-commerce and omni-channel efforts. Coupled with a solid wholesale performance and positive financial outlook, including rising net sales and earnings, the company is poised for a prosperous future.
3 Other Promising Stocks
Here, we have highlighted three other top-ranked stocks, namely Chewy, Inc. (CHWY - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) .
Chewy, a trusted destination for pet parents and partners everywhere, sports a Zacks Rank #1 at present. CHWY has a trailing four-quarter earnings surprise of 234.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chewy’s current financial-year sales and earnings suggests growth of 10.3% and 11.3%, respectively, from the year-ago reported numbers.
Costco, which operates membership warehouses, currently carries a Zacks Rank #2 (Buy). COST has a trailing four-quarter earnings surprise of 2.6%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings suggests growth of 4.7% and 6.9%, respectively, from the year-ago reported numbers.
Grocery Outlet, a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. GO has a trailing four-quarter earnings surprise of 17%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 9.4% each from the year-ago reported numbers.