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2 Footwear Stocks to Consider as Earnings Approach
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Quarterly results from prominent retailers will continue to highlight this week’s earnings lineup. Furthermore, Deckers Outdoor (DECK - Free Report) and Skechers are two top-rated retail apparel stocks that look attractive ahead of their quarterly reports after-market hours on Thursday, July 25.
With both having a special niche in regard to footwear, let’s see why now is a good time to buy Deckers and Skechers stock.
Deckers Q1 Expectations
Specializing in footwear and accessories for outdoor sports among other lifestyle-related activities, Deckers will be reporting results for its fiscal first quarter with Q1 sales expected to spike 19% to $804.49 million.
Deckers' massive profitability should remain a highlight as well with Q1 EPS projected to soar 46% to $3.53 compared to $2.41 per share a year ago. Deckers' popular UGG boots have been a spark to its expansion along with its HOKA brand, which it plans to build into a multi-billion-dollar global player in the performance athletics space.
Notably, Deckers has exceeded bottom line expectations for 10 consecutive quarters posting a very impressive average earnings surprise of 42.82% in its last four quarterly reports.
Image Source: Zacks Investment Research
Skechers Q2 Expectations
Revamping itself as a leader in comfortable casual footwear, Skechers Q2 sales are expected at $2.21 billion which would be a 10% increase from the comparative quarter. This is despite Q2 EPS thought to have dipped -5% to $0.93.
However, the Zacks ESP (Expected Surprise Prediction) does indicate Skechers could surpass earnings expectations with the Most Accurate Estimate having Q2 EPS pegged at $0.97 and 3% above the Zacks Consensus.
Image Source: Zacks Investment Research
Plus, Skechers has beaten bottom line expectations for six straight quarters posting an average earnings surprise of 34.07% in its last four quarterly reports.
Image Source: Zacks Investment Research
Attractive Growth Trajectories
Overall, Deckers' total sales are projected to increase 11% in its current fiscal 2025 with its top line forecasted to expand another 10% in FY26 to $5.22 billion. More impressive, annual earnings are expected to increase 5% in FY25 and are slated to rise another 12% in FY26 to a whopping $34.44 per share.
Image Source: Zacks Investment Research
Turning to Skechers, its top line is expected to expand 10% this year and is projected to increase another 9% in FY25 to $9.7 billion. Even better, Skechers is forecasted to post 18% EPS growth in FY24 with earnings slated to jump 14% in FY25 to $4.68 per share.
Image Source: Zacks Investment Research
Recent Price Performance
Year to date, Skechers stock is up a modest +2% while Deckers shares have climbed over +20%. Better still, Skechers stock is now sitting on +22% gains over the last year which has roughly matched the S&P 500 while Deckers' +52% has noticeably outperformed the broader market.
Image Source: Zacks Investment Research
Bottom Line
Ahead of their Q2 reports, Skechers stock boasts a Zacks Rank #1 (Strong Buy) with Deckers sporting a Zacks Rank #2 (Buy). It would be no surprise if these top-rated stocks kept rising if they could reach or exceed their quarterly expectations and offer positive guidance that reconfirms their attractive growth trajectories.
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2 Footwear Stocks to Consider as Earnings Approach
Quarterly results from prominent retailers will continue to highlight this week’s earnings lineup. Furthermore, Deckers Outdoor (DECK - Free Report) and Skechers are two top-rated retail apparel stocks that look attractive ahead of their quarterly reports after-market hours on Thursday, July 25.
With both having a special niche in regard to footwear, let’s see why now is a good time to buy Deckers and Skechers stock.
Deckers Q1 Expectations
Specializing in footwear and accessories for outdoor sports among other lifestyle-related activities, Deckers will be reporting results for its fiscal first quarter with Q1 sales expected to spike 19% to $804.49 million.
Deckers' massive profitability should remain a highlight as well with Q1 EPS projected to soar 46% to $3.53 compared to $2.41 per share a year ago. Deckers' popular UGG boots have been a spark to its expansion along with its HOKA brand, which it plans to build into a multi-billion-dollar global player in the performance athletics space.
Notably, Deckers has exceeded bottom line expectations for 10 consecutive quarters posting a very impressive average earnings surprise of 42.82% in its last four quarterly reports.
Image Source: Zacks Investment Research
Skechers Q2 Expectations
Revamping itself as a leader in comfortable casual footwear, Skechers Q2 sales are expected at $2.21 billion which would be a 10% increase from the comparative quarter. This is despite Q2 EPS thought to have dipped -5% to $0.93.
However, the Zacks ESP (Expected Surprise Prediction) does indicate Skechers could surpass earnings expectations with the Most Accurate Estimate having Q2 EPS pegged at $0.97 and 3% above the Zacks Consensus.
Image Source: Zacks Investment Research
Plus, Skechers has beaten bottom line expectations for six straight quarters posting an average earnings surprise of 34.07% in its last four quarterly reports.
Image Source: Zacks Investment Research
Attractive Growth Trajectories
Overall, Deckers' total sales are projected to increase 11% in its current fiscal 2025 with its top line forecasted to expand another 10% in FY26 to $5.22 billion. More impressive, annual earnings are expected to increase 5% in FY25 and are slated to rise another 12% in FY26 to a whopping $34.44 per share.
Image Source: Zacks Investment Research
Turning to Skechers, its top line is expected to expand 10% this year and is projected to increase another 9% in FY25 to $9.7 billion. Even better, Skechers is forecasted to post 18% EPS growth in FY24 with earnings slated to jump 14% in FY25 to $4.68 per share.
Image Source: Zacks Investment Research
Recent Price Performance
Year to date, Skechers stock is up a modest +2% while Deckers shares have climbed over +20%. Better still, Skechers stock is now sitting on +22% gains over the last year which has roughly matched the S&P 500 while Deckers' +52% has noticeably outperformed the broader market.
Image Source: Zacks Investment Research
Bottom Line
Ahead of their Q2 reports, Skechers stock boasts a Zacks Rank #1 (Strong Buy) with Deckers sporting a Zacks Rank #2 (Buy). It would be no surprise if these top-rated stocks kept rising if they could reach or exceed their quarterly expectations and offer positive guidance that reconfirms their attractive growth trajectories.