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Here's Why Deckers (DECK) Is a Smart Investment Choice
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Deckers Outdoor Corporation (DECK - Free Report) is making waves in the stock market, showcasing impressive growth and promising prospects for investors. With its stock soaring by an impressive 74.8% in the past six months, outpacing the industry's growth of 33.6%, DECK proves to be a compelling choice for savvy investors.
This remarkable performance is a testament to Deckers' strategic focus on profitable markets and ongoing initiatives in product innovation, store expansion and enhancing e-commerce capabilities. This Zacks Rank #2 (Buy) company's potential for further expansion is underscored by its Momentum Score of B.
The upward trend in the Zacks Consensus Estimate reaffirms investor confidence in Deckers' growth prospects. Over the past 30 days, the Zacks Consensus Estimate for earnings per share for the current and next fiscal years has increased by 2 cents and 7 cents, reaching $26.87 and $29.78, respectively. Similarly, the Zacks Consensus Estimate for sales for the current and next fiscal year stands at $4.2 billion and $4.66 billion, which indicates year-over-year growth of 15.8% and 10.9%, respectively.
Let’s Delve Deeper
Deckers is positioned for sustained growth through expanding brand assortments, introducing innovative products and optimizing distribution channels. The growing acceptance of the UGG and HOKA brands, alongside their diverse product lines and strong presence in international markets, presents significant opportunities for expansion. Deckers aims to elevate HOKA into a multibillion-dollar player, establish UGG as a global lifestyle brand and fortify its direct-to-consumer business. We expect net sales increases of 12% and 24.6% for the UGG and HOKA brands, respectively, in fiscal 2024.
Deckers demonstrates a robust direct-to-consumer business, with a surge of 22.7% in third-quarter revenues in fiscal 2024, now representing a record 55% of the total revenues. This growth underscores Deckers' success in engaging directly with consumers through various channels and aligning product creation, marketing and omnichannel distribution around consumer needs. With strategic initiatives such as new store openings and targeted market expansions, Deckers is committed to enhancing brand accessibility and consumer experiences across multiple touchpoints. We foresee 24.3% growth in DTC revenues in fiscal 2024.
Image Source: Zacks Investment Research
Despite market fluctuations, Deckers' wholesale segment has demonstrated commendable performance, particularly in key regions such as the United States and Europe. In the third quarter, wholesale revenues increased by 8.6%, underscoring the channel's robustness and ability to drive incremental sales. With a robust wholesale network and strategic collaborations, Deckers continues to capitalize on emerging opportunities, driving incremental revenue growth and solidifying its position as a leading player in the footwear industry.
The company’s robust international expansion strategy has been instrumental in propelling the growth trajectory. Direct-to-consumer sales across international regions surged by an impressive 40% in the third quarter, reflecting Deckers' adeptness at penetrating diverse consumer demographics worldwide. By prioritizing international growth initiatives, Deckers has unlocked new avenues for revenue expansion and become a formidable player in the global footwear market. We expect revenues from international regions to increase 16.1% in fiscal 2024.
Wrapping Up
Deckers thrives on strategic initiatives like product innovation and expanding brand assortments. The company’s emphasis on direct-to-consumer channels, successful global expansion and a robust wholesale segment fortify its market position. Proactive consumer engagement and omnichannel distribution enhance its competitive edge. With these strategies, Deckers is positioned for ongoing success in the footwear industry.
3 More Stocks Looking Hot
Here, we have highlighted other top-ranked stocks, namely American Eagle Outfitters (AEO - Free Report) , Abercrombie & Fitch (ANF - Free Report) and Crocs (CROX - Free Report) .
American Eagle Outfitters is a leading global specialty retailer offering on-trend clothing, accessories and personal care under its American Eagle and Aerie brands. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 3.3% and 12.5%, respectively, from the year-ago reported figure. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Abercrombie & Fitch, a leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids, sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 715.6%, on average.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 5.6% and 19.1%, respectively, from the year-ago reported figure.
Crocs, a world leader in innovative casual footwear for all, carries a Zacks Rank #2. CROX has a trailing four-quarter earnings surprise of 14.2%, on average.
The Zacks Consensus Estimate for Crocs’ current fiscal sales and EPS suggests growth of 3.9% and 2.9%, respectively, from the year-ago reported figure.
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Here's Why Deckers (DECK) Is a Smart Investment Choice
Deckers Outdoor Corporation (DECK - Free Report) is making waves in the stock market, showcasing impressive growth and promising prospects for investors. With its stock soaring by an impressive 74.8% in the past six months, outpacing the industry's growth of 33.6%, DECK proves to be a compelling choice for savvy investors.
This remarkable performance is a testament to Deckers' strategic focus on profitable markets and ongoing initiatives in product innovation, store expansion and enhancing e-commerce capabilities. This Zacks Rank #2 (Buy) company's potential for further expansion is underscored by its Momentum Score of B.
The upward trend in the Zacks Consensus Estimate reaffirms investor confidence in Deckers' growth prospects. Over the past 30 days, the Zacks Consensus Estimate for earnings per share for the current and next fiscal years has increased by 2 cents and 7 cents, reaching $26.87 and $29.78, respectively. Similarly, the Zacks Consensus Estimate for sales for the current and next fiscal year stands at $4.2 billion and $4.66 billion, which indicates year-over-year growth of 15.8% and 10.9%, respectively.
Let’s Delve Deeper
Deckers is positioned for sustained growth through expanding brand assortments, introducing innovative products and optimizing distribution channels. The growing acceptance of the UGG and HOKA brands, alongside their diverse product lines and strong presence in international markets, presents significant opportunities for expansion. Deckers aims to elevate HOKA into a multibillion-dollar player, establish UGG as a global lifestyle brand and fortify its direct-to-consumer business. We expect net sales increases of 12% and 24.6% for the UGG and HOKA brands, respectively, in fiscal 2024.
Deckers demonstrates a robust direct-to-consumer business, with a surge of 22.7% in third-quarter revenues in fiscal 2024, now representing a record 55% of the total revenues. This growth underscores Deckers' success in engaging directly with consumers through various channels and aligning product creation, marketing and omnichannel distribution around consumer needs. With strategic initiatives such as new store openings and targeted market expansions, Deckers is committed to enhancing brand accessibility and consumer experiences across multiple touchpoints. We foresee 24.3% growth in DTC revenues in fiscal 2024.
Image Source: Zacks Investment Research
Despite market fluctuations, Deckers' wholesale segment has demonstrated commendable performance, particularly in key regions such as the United States and Europe. In the third quarter, wholesale revenues increased by 8.6%, underscoring the channel's robustness and ability to drive incremental sales. With a robust wholesale network and strategic collaborations, Deckers continues to capitalize on emerging opportunities, driving incremental revenue growth and solidifying its position as a leading player in the footwear industry.
The company’s robust international expansion strategy has been instrumental in propelling the growth trajectory. Direct-to-consumer sales across international regions surged by an impressive 40% in the third quarter, reflecting Deckers' adeptness at penetrating diverse consumer demographics worldwide. By prioritizing international growth initiatives, Deckers has unlocked new avenues for revenue expansion and become a formidable player in the global footwear market. We expect revenues from international regions to increase 16.1% in fiscal 2024.
Wrapping Up
Deckers thrives on strategic initiatives like product innovation and expanding brand assortments. The company’s emphasis on direct-to-consumer channels, successful global expansion and a robust wholesale segment fortify its market position. Proactive consumer engagement and omnichannel distribution enhance its competitive edge. With these strategies, Deckers is positioned for ongoing success in the footwear industry.
3 More Stocks Looking Hot
Here, we have highlighted other top-ranked stocks, namely American Eagle Outfitters (AEO - Free Report) , Abercrombie & Fitch (ANF - Free Report) and Crocs (CROX - Free Report) .
American Eagle Outfitters is a leading global specialty retailer offering on-trend clothing, accessories and personal care under its American Eagle and Aerie brands. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 3.3% and 12.5%, respectively, from the year-ago reported figure. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Abercrombie & Fitch, a leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids, sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 715.6%, on average.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 5.6% and 19.1%, respectively, from the year-ago reported figure.
Crocs, a world leader in innovative casual footwear for all, carries a Zacks Rank #2. CROX has a trailing four-quarter earnings surprise of 14.2%, on average.
The Zacks Consensus Estimate for Crocs’ current fiscal sales and EPS suggests growth of 3.9% and 2.9%, respectively, from the year-ago reported figure.