We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors Likely to Decide Deckers' (DECK) Fate in Q4 Earnings
Read MoreHide Full Article
Deckers Outdoor Corporation (DECK - Free Report) is likely to register a decline in the top line when it reports fourth-quarter fiscal 2020 numbers on May 21, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $360 million, indicating a decline of 8.7% from the prior-year reported figure.
Further, the bottom line is also expected to tumble year over year. We note that the Zacks Consensus Estimate for earnings for the quarter under review has remained stable at 16 cents over the past 30 days. The figure suggests a sharp decline from earnings of 85 cents in the prior-year quarter.
This Goleta, CA-based company’s bottom line has outperformed the Zacks Consensus Estimate in the trailing four quarters.
Key Factors to Note
Deckers has been benefiting from focus on expanding brand assortments, introducing more innovative line of products, targeting consumers digitally through marketing and sturdy e-commerce, and optimizing omni-channel distribution. Further, in keeping with the changing scenario, the company has been making substantial investments to strengthen online presence and open smaller concept omni-channel outlets. The company also has been making marketing investments to build brand awareness of HOKA ONE ONE and UGG Men’s and UGG Women’s non-core category.
However, we note that the company has been grappling with falling sales from the Sanuk Brand, which is likely to have weighed on fourth-quarter performance. Management expects reductions in the Sanuk domestic wholesale business on account of the decision to exit the warehouse channel. Moreover, headwinds related to currency, freight expense and higher promotional environment cannot be ignored. These might get reflected in margins and in turn the bottom line.
Also, the outbreak of coronavirus pandemic compelled the company to temporarily close stores. This is likely to show on the company’s top-line results.
We note that the Zacks Consensus Estimate for sales for Sanuk and Teva brands are pegged at $15.7 million and $62 million, respectively, compared with $31.5 million and $52.9 million reported in the year-ago period. Meanwhile, the consensus estimate for sales for UGG brand stands at $221 million, down from $239 million reported in the year-ago period.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
Our proven model does not conclusively predict a beat for Deckers this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Deckers has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
3 More Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Lowe's (LOW - Free Report) has an Earnings ESP of +3.33% and a Zacks Rank #3.
Dollar General (DG - Free Report) has an Earnings ESP of +1.25% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Factors Likely to Decide Deckers' (DECK) Fate in Q4 Earnings
Deckers Outdoor Corporation (DECK - Free Report) is likely to register a decline in the top line when it reports fourth-quarter fiscal 2020 numbers on May 21, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $360 million, indicating a decline of 8.7% from the prior-year reported figure.
Further, the bottom line is also expected to tumble year over year. We note that the Zacks Consensus Estimate for earnings for the quarter under review has remained stable at 16 cents over the past 30 days. The figure suggests a sharp decline from earnings of 85 cents in the prior-year quarter.
This Goleta, CA-based company’s bottom line has outperformed the Zacks Consensus Estimate in the trailing four quarters.
Key Factors to Note
Deckers has been benefiting from focus on expanding brand assortments, introducing more innovative line of products, targeting consumers digitally through marketing and sturdy e-commerce, and optimizing omni-channel distribution. Further, in keeping with the changing scenario, the company has been making substantial investments to strengthen online presence and open smaller concept omni-channel outlets. The company also has been making marketing investments to build brand awareness of HOKA ONE ONE and UGG Men’s and UGG Women’s non-core category.
However, we note that the company has been grappling with falling sales from the Sanuk Brand, which is likely to have weighed on fourth-quarter performance. Management expects reductions in the Sanuk domestic wholesale business on account of the decision to exit the warehouse channel. Moreover, headwinds related to currency, freight expense and higher promotional environment cannot be ignored. These might get reflected in margins and in turn the bottom line.
Also, the outbreak of coronavirus pandemic compelled the company to temporarily close stores. This is likely to show on the company’s top-line results.
We note that the Zacks Consensus Estimate for sales for Sanuk and Teva brands are pegged at $15.7 million and $62 million, respectively, compared with $31.5 million and $52.9 million reported in the year-ago period. Meanwhile, the consensus estimate for sales for UGG brand stands at $221 million, down from $239 million reported in the year-ago period.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Deckers this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Deckers has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
3 More Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Kroger (KR - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lowe's (LOW - Free Report) has an Earnings ESP of +3.33% and a Zacks Rank #3.
Dollar General (DG - Free Report) has an Earnings ESP of +1.25% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>