Deckers Stock Jumps 11% on Strong Q2 Results

Deckers Outdoor (NYSE:DECK) delivered a stellar third-quarter performance, beating Wall Street estimates on both earnings and revenue, yet its stock tumbled 13% in pre-market trading on Friday as investors reacted cautiously despite an improved full-year outlook.

The company reported adjusted earnings per share of $3.00 for the fiscal third quarter of 2025, handily surpassing analyst projections of $2.46. Revenue surged 17% year-over-year to a record $1.83 billion, exceeding the expected $1.7 billion.

Deckers now expects earnings per share between $5.75 and $5.80, topping analyst forecasts of $5.64. The company also lifted its revenue growth outlook to 15% for the fiscal year.

CEO Stefano Caroti emphasized the company’s success in capitalizing on consumer demand, particularly for its flagship UGG brand, which saw significant global traction. The HOKA brand also posted strong growth, reflecting the company’s focus on performance-driven innovation.

While Deckers’ fundamentals appear solid, the steep stock decline suggests investor concerns over valuation or potential future growth trends. Nonetheless, the company remains confident in its momentum heading into the remainder of the fiscal year.

Evercore ISI analysts increased their price target for Deckers Outdoor (NYSE:DECK) to $235 from $195, maintaining an Outperform rating on the stock. The revised outlook reflects strong growth prospects driven by sustained demand for the company’s flagship brands, HOKA and UGG, in both domestic and international markets.

Deckers continues to stand out as a top-quality growth story in the softlines sector heading into 2025. Market checks indicate robust order volumes for both HOKA and UGG, with no signs of waning consumer enthusiasm. While the broader retail environment has seen heightened promotional activity, HOKA has maintained its premium positioning with limited discounts, and UGG has outperformed the overall boot category, despite unseasonably warm weather creating challenges for competitors.

According to the analysts, the ongoing shift in product mix is expected to provide margin expansion tailwinds, supporting Deckers' ability to deliver mid-teens earnings per share growth annually over the next two years. The analysts’ 2025 EPS forecast remains unchanged, but estimates for 2026 and 2027 have been raised by 3% and 4%, respectively, positioning them above consensus by 3%.

• Chris Nardone of Bank of America Securities sets a price target of $170 for Deckers Outdoor Corporation (NYSE:DECK), indicating a potential upside of 7.91%.
• Deckers' recent six-for-one stock split aims to make shares more accessible, reflecting a commitment to enhancing shareholder value.
• Despite a short-term decline post-stock split, Deckers shows resilience with a stock price increase to $157 and a market capitalization of approximately 23.94 billion.

Chris Nardone of Bank of America Securities has recently set a price target of $170 for Deckers Outdoor Corporation (NYSE:DECK), suggesting a potential upside of about 7.91% from its current trading price of $157.55. This optimistic outlook is based on the company's strong brand presence and innovative product offerings. Deckers, known for its popular brands like Ugg and Hoka, is a global leader in the design, marketing, and distribution of innovative footwear, apparel, and accessories. The company's strategic initiatives and market positioning have made it a subject of interest among investors and analysts alike.

Deckers Outdoor Corp. has been in the news for its recent six-for-one stock split, a move aimed at making its shares more accessible to a broader range of investors, including employees. This decision, approved by stockholders following the company's annual meeting, reflects the company's commitment to enhancing shareholder value and broadening its investor base. The stock split, which was effectively implemented on September 13, 2024, resulted in a temporary decline in share price, a common occurrence as markets adjust to the increased share count and reduced price per share.

Despite the short-term decline following the stock split, Deckers' stock has shown resilience, closing a recent trading session at $919.13, marking a 1.09% increase. This performance not only outpaced major indexes but also highlighted the company's strong market position. However, it's important to note that over the past month, Deckers has seen a slight decline of 1.1%, underperforming the Retail-Wholesale sector's gain of 7.86% and the S&P 500's increase of 4.03%. This suggests that while Deckers is a strong player in its sector, it faces stiff competition and market volatility.

Investors are closely watching Deckers' financial performance, with expectations set for an earnings per share (EPS) of $7.24 in the upcoming earnings release. This forecasted growth of 6.16% compared to the same quarter last year, along with a projected revenue increase of 9.15% to $1.19 billion, underscores the company's solid growth trajectory. For the entire fiscal year, earnings are projected to reach $31.60 per share, indicating confidence in Deckers' operational efficiency and market strategy.

Deckers' recent trading activity, with a stock price increase to $157 and a market capitalization of approximately 23.94 billion, reflects its strong market presence and investor confidence. The company's stock has fluctuated between $80.67 and $184.48 over the past year, demonstrating significant volatility but also the potential for substantial growth. As Deckers continues to innovate and expand its brand portfolio, investors and analysts like Chris Nardone of Bank of America Securities remain optimistic about its future prospects.

• Deckers Brands (NYSE:DECK) executed a 1 for 6 stock split to make shares more accessible and increase liquidity.
• The stock split was approved by shareholders, indicating strong support for the company's strategic direction.
• Following the stock split, DECK's stock price saw an increase, reflecting positive market reception.

On September 17, 2024, Deckers Brands (NYSE:DECK), a prominent player in the global footwear, apparel, and accessories market, implemented a significant change in its stock structure through a 1 for 6 stock split. This adjustment directly impacts the number of shares each shareholder owns, effectively increasing the total shares available while maintaining the overall value of the company in the market. This move is part of a broader strategy to make DECK's stock more accessible to a wider range of investors, including its employees.

The decision for this stock split came after Deckers Brands' stockholders approved the proposal during the annual meeting on September 9, 2024. The approval was a clear indication of the confidence and support from the shareholders towards the company's strategic direction. By increasing the authorized shares of its common stock, Deckers Brands aims to enhance liquidity and make its shares more appealing to potential investors. Stefano Caroti, the President and CEO, expressed his enthusiasm for the stockholder approval, emphasizing the expected benefits of expanding the investor base.

To legally enact this change, Deckers Brands amended its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware. This amendment, effective upon its filing on September 13, 2024, laid the groundwork for the stock split and the increase in authorized shares. This move underscores Deckers Brands' commitment to enhancing shareholder value and making its stock more accessible to a broader audience.

Following the announcement of the stock split, DECK's stock price saw an increase of $2.61, marking a change of approximately 0.28%. The stock has been trading between $918.44 and $942.96, with a current price of $937.68. Over the past year, DECK's stock has experienced significant fluctuations, ranging from a low of $484.02 to a high of $1106.89. With a market capitalization of approximately $23.83 billion and a trading volume of 257,374 shares, Deckers Brands continues to demonstrate its strength and appeal in the market. This strategic decision to undergo a stock split reflects the company's ongoing efforts to enhance shareholder value and broaden its investor base.

• Deckers Outdoor Corporation (NYSE:DECK) is set for a stock split to make shares more accessible to a broader range of investors.
• The company's stock price has soared by 71.5%, significantly outperforming the industry average.
• Deckers' robust financial health and strong performance indicators suggest a potential buy opportunity for investors.

Deckers Outdoor Corporation (NYSE:DECK), known for its popular Ugg footwear, is making headlines with its upcoming stock split scheduled for September 17, 2024. In this split, shareholders are set to receive 6 shares for every 1 share they currently own. This move aims to increase the number of shares available in the market and adjust the share price accordingly, making it more accessible to a broader range of investors.

The decision for a stock split comes on the heels of DECK's remarkable performance over the past year, with its stock price soaring by 71.5%, significantly outperforming the Zacks Retail-Apparel and Shoes industry's growth of 20.6%. This surge is largely attributed to Deckers' strategic focus on expanding its brand presence and strengthening its direct-to-consumer channels. The company's commitment to product innovation and its efforts to tap into international markets have been key drivers of its success.

Deckers' financial health is robust, supported by a strong financial position and substantial cash reserves. This financial stability has enabled the company to surpass growth rates of both the broader Retail-Wholesale sector and the S&P 500 index, which increased by 18.6% and 22.6%, respectively. Analysts have taken note of Deckers' positive trajectory, leading to an upward revision of the Zacks Consensus Estimate for earnings per share for the current and next fiscal quarter.

The company's recent trading session saw DECK closing at $959.29, marking a notable increase of 1.9% from the previous day and outpacing the broader market gains. This performance, coupled with an optimistic outlook from Wall Street analysts, indicates a potential buy opportunity for investors. Deckers holds an average brokerage recommendation (ABR) of 1.68, falling between Strong Buy and Buy, based on the analysis of 19 brokerage firms.

Investors are eagerly anticipating Deckers' upcoming earnings disclosure, with projections indicating an earnings per share (EPS) of $7.24, a 6.16% increase from the same quarter last year. Revenue is expected to reach $1.19 billion, showing a 9.15% increase compared to the previous year. These figures underscore Deckers' strong performance and potential for continued growth in the market, reinforcing the company's decision for a stock split as a strategic move to further enhance shareholder value.

Deckers Outdoor Corporation (NYSE:DECK) raised its guidance after reporting better-than-expected results for the first quarter, driven by strong demand for its Hoka and Ugg brands. Following the announcement, the company's shares jumped 11% in pre-market today.

For the quarter, Deckers reported earnings per share of $4.52 on revenue of $825 million, surpassing Wall Street's estimates of $3.43 per share on revenue of $805.1 million.

The company highlighted that the Hoka and Ugg brands continued to drive significant full-price demand in the global market, contributing to increased margins. The gross margin improved to 56.9%, up from 51.3% in the same period last year.

Looking forward, Deckers raised its fiscal 2025 earnings guidance to a range of $29.75 to $30.65 per share, up from the previous range of $29.50 to $30.00 per share.