Latest news with #Deckers
Yahoo
16 hours ago
- Business
- Yahoo
Deckers (DECK) Rises Higher Than Market: Key Facts
In the latest market close, Deckers (DECK) reached $110.91, with a +1.55% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.09%. Shares of the maker of Ugg footwear witnessed a loss of 9.79% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 6.31% and the S&P 500's gain of 7.21%. Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. On that day, Deckers is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 10.67%. Simultaneously, our latest consensus estimate expects the revenue to be $899.01 million, showing an 8.92% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates project earnings of $6.12 per share and a revenue of $5.36 billion, demonstrating changes of -3.32% and +7.61%, respectively, from the preceding year. Investors should also pay attention to any latest changes in analyst estimates for Deckers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.3% downward. Currently, Deckers is carrying a Zacks Rank of #4 (Sell). Digging into valuation, Deckers currently has a Forward P/E ratio of 17.86. This denotes a premium relative to the industry's average Forward P/E of 17. Also, we should mention that DECK has a PEG ratio of 6.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.94 as trading concluded yesterday. The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 30% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow DECK in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
31-05-2025
- Business
- Yahoo
Is Deckers' Pain Nike's Gain? 1 Wall Street Analyst Thinks So.
Shares of Deckers tumbled after it delivered its earnings report last week, in part due to slowing growth in the Hoka brand. One analyst believes a resurgent Nike is putting pressure on Hoka. Nike's sales are still declining, but the business should eventually get back on track. These 10 stocks could mint the next wave of millionaires › Deckers (NYSE: DECK) stock plunged last week after the footwear maker published fiscal fourth-quarter results that topped expectations, but issued disappointing guidance. Though the company did beat estimates in the quarter, its growth still slowed markedly as overall revenue rose 6.5% year over year to $1.02 billion. That included a 3.6% gain from the Ugg brand and 10% growth in Hoka sales. That was a notable deceleration from the prior three quarters; for fiscal 2025, overall revenue was up 16.3% to $4.99 billion, with Ugg sales up 13.1% and Hoka up 23.6%. Management declined to offer full-year guidance due to broader macroeconomic uncertainty. It projected 9% revenue growth in its fiscal 2026 first quarter, now underway, but foresees a decline in earnings per share due in part to an increase in its cost of goods sold because of tariffs, higher freight costs, and increased promotional activity. It's no secret that Deckers has grabbed market share from Nike (NYSE: NKE) in recent years. Over the last five years, Deckers has grown its revenue at a compound annual rate of 19%, and Hoka, its popular running shoe brand, has grown even faster. In fiscal 2025, Hoka's revenue hit $2.23 billion. That's still slightly smaller than Ugg, which had $2.53 billion in sales for the year, but Hoka has clearly become a powerhouse in the running category. While Deckers' sales were surging ahead, Nike has been moving in the opposite direction -- its revenue has declined for several quarters in a row. Over the last four quarters, Nike's top line has nearly fallen to where it was three years ago. Nike missed out on a post-pandemic boom in running that its rivals were able to capitalize on. However, it may be finally getting back on its feet in running as CEO Elliott Hill said its sales in the category grew by a mid-single-digit percentage in its fiscal 2025 Q3 (which ended Feb. 28), a far better result than the overall 9% revenue decline it experienced. Nike's growth in running was led by shoes like the Pegasus 41, Pegasus Premium, and Vomero 18. The company also highlighted the successes of products like the Vomero 5, sales of which doubled in the quarter, and Nike Shox, sales of which have grown 10 times higher in the past three quarters. Based on Hoka's 10% revenue growth in its fiscal fourth quarter, Hoka still appears to be gaining market share from Nike, though investors won't know for sure until the Swoosh's next earnings report in late June. However, one Wall Street analyst firm believes the scales are starting to tilt in Nike's favor, which explains the slowing growth at Hoka. Jefferies analyst Randal Konik argued that Hoka's slowing growth is a sign that market share is swinging back to Nike in running, and said that Nike's moves to get back share in the wholesale channel, including selling again on Amazon, should help drive its recovery. Jefferies gives Nike a buy rating with a price target of $115, which is about 85% higher than its current level. The Jefferies analyst also noted that Nike is trading at its lowest enterprise-value-to-sales multiple in 15 years, though that's mostly due to the collapse in the stock price. While Nike does seem to be improving competitively, it is also at risk from some of the same headwinds that are challenging Deckers, including tariffs and their impact on consumer demand. However, Nike should eventually turn itself around. The brand is too entrenched for the company's revenue to just gradually decline forever. Its turnaround could take time to play out, especially given the pressure in the macro environment, but Nike should eventually return to its winning ways. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $360,955!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,958!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $638,985!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 19, 2025 Jeremy Bowman has positions in Nike. The Motley Fool has positions in and recommends Deckers Outdoor and Nike. The Motley Fool has a disclosure policy. Is Deckers' Pain Nike's Gain? 1 Wall Street Analyst Thinks So. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
Deckers (DECK) Registers a Bigger Fall Than the Market: Important Facts to Note
Deckers (DECK) closed the most recent trading day at $105.52, moving -1.63% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%. Prior to today's trading, shares of the maker of Ugg footwear had lost 3.47% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.26% and the S&P 500's gain of 6.43% in that time. The investment community will be paying close attention to the earnings performance of Deckers in its upcoming release. It is anticipated that the company will report an EPS of $0.69, marking an 8% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $899.01 million, indicating an 8.92% upward movement from the same quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.12 per share and revenue of $5.37 billion. These totals would mark changes of -3.32% and +7.64%, respectively, from last year. Investors might also notice recent changes to analyst estimates for Deckers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.3% decrease. Deckers is currently a Zacks Rank #4 (Sell). Looking at valuation, Deckers is presently trading at a Forward P/E ratio of 17.54. This signifies a premium in comparison to the average Forward P/E of 17.05 for its industry. It's also important to note that DECK currently trades at a PEG ratio of 6.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.93. The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
DECK Q1 Earnings Call: Sales Miss Expectations, Margin Expansion and Cautious Outlook
Footwear and apparel conglomerate Deckers (NYSE:DECK) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 6.5% year on year to $1.02 billion. Its GAAP EPS of $1 per share was 66.9% above analysts' consensus estimates. Is now the time to buy DECK? Find out in our full research report (it's free). Operating Margin: 17.4%, up from 16% in the same quarter last year Locations: 181 at quarter end, up from 164 in the same quarter last year Constant Currency Revenue rose 7.5% year on year (21.1% in the same quarter last year) Same-Store Sales fell 1.6% year on year (20.6% in the same quarter last year) Market Capitalization: $16.28 billion Deckers' leadership attributed quarterly performance to the continued momentum of its two largest brands, HOKA and UGG, which each saw growth across channels and regions. While HOKA benefited from expanded wholesale distribution and new product launches such as the Bondi 9 and Clifton 10, direct-to-consumer growth in the U.S. was tempered by higher promotions on outgoing models and some softness in new customer acquisition. For UGG, strong wholesale demand for transitional and spring styles underpinned growth, though limited availability of key products in direct channels constrained sales. CFO Steve Fasching noted that gross margin improvement was driven primarily by higher levels of full-price selling within UGG and favorable product mix. Looking forward, management emphasized that macroeconomic uncertainty and new U.S. footwear tariffs are likely to weigh on results in the coming quarters. Steve Fasching explained, 'We believe there is potential to see demand erosion associated with the combination of price increases and general softness in the consumer spending environment.' The company anticipates that international growth—especially for HOKA—will outpace the U.S., while wholesale channels will drive more incremental gains than direct-to-consumer. Deckers also plans selective price increases and cost-sharing with suppliers to partially offset tariff impacts, but expects gross margins to face headwinds as a result. CEO Stefano Caroti reiterated a long-term focus on innovation and international expansion to support both brands despite near-term challenges. Management pointed to model transitions, shifting channel dynamics, and external trade policy changes as major factors shaping the quarter's financial results and longer-term strategy. HOKA wholesale expansion: The brand saw continued growth in global wholesale distribution, with management highlighting that expanded retail partnerships and strong sell-through of new models like the Bondi 9 contributed to overall gains even as U.S. direct-to-consumer growth slowed. Product upgrade cycle: New iterations of key franchises (Bondi 9, Clifton 10) received positive feedback from consumers and partners, but transition periods involved higher promotional activity and lower average selling prices, especially in the direct channel. UGG's diversification and men's growth: UGG drove growth through new product categories, including men's-focused styles and hybrid products. Management cited successes with men's campaigns and higher sell-through of spring products in China, reflecting progress in broadening the brand's appeal and seasonality. Tariff and cost pressures: Deckers is facing incremental costs from new U.S. footwear tariffs and higher freight rates. While only a small portion of production is sourced from China, management expects partial mitigation through price increases and supplier negotiations but anticipates some margin contraction. Inventory and supply chain management: The company intentionally increased inventory levels compared to last year to navigate potential tariff timing and a European distribution center transition, aiming to avoid supply disruptions during key periods. Deckers' outlook is shaped by planned price adjustments, macroeconomic headwinds, and a continued push for international and wholesale-led growth. Tariffs and pricing strategy: Management expects new U.S. tariffs on footwear imports to increase costs, prompting a staggered implementation of selective price increases and cost-sharing with factory partners. However, they caution that not all incremental costs will be offset, and higher prices may impact demand, particularly in the U.S. International and wholesale momentum: The company projects that international sales, especially in Europe and China, will grow faster than domestic sales. HOKA's expanding presence in overseas markets and additional wholesale partnerships are seen as main avenues for capturing new customers and mitigating U.S. softness. Product innovation and pipeline: Deckers is prioritizing ongoing product launches and upgrades across HOKA and UGG, including new performance models and lifestyle offerings. Management believes this will help maintain consumer interest and support growth across both established and emerging categories, even as the environment remains uncertain. In the coming quarters, the StockStory team will closely monitor (1) Deckers' ability to offset tariff-related cost increases through pricing and supplier negotiations, (2) trends in HOKA's U.S. direct-to-consumer segment as new models gain traction and promotions normalize, and (3) the pace of international and wholesale channel expansion—especially in key markets like China and Europe. The success of upcoming product launches and supply chain adaptations will also be important indicators of execution. Deckers currently trades at a forward P/E ratio of 17.4×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Red Rock Resorts, Sonos, Deckers, Lovesac, and Royal Caribbean Shares Skyrocket, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Casino Operator company Red Rock Resorts (NASDAQ:RRR) jumped 5.8%. Is now the time to buy Red Rock Resorts? Access our full analysis report here, it's free. Consumer Electronics company Sonos (NASDAQ:SONO) jumped 5.7%. Is now the time to buy Sonos? Access our full analysis report here, it's free. Footwear company Deckers (NYSE:DECK) jumped 7%. Is now the time to buy Deckers? Access our full analysis report here, it's free. Home Furnishings company Lovesac (NASDAQ:LOVE) jumped 6.8%. Is now the time to buy Lovesac? Access our full analysis report here, it's free. Travel and Vacation Providers company Royal Caribbean (NYSE:RCL) jumped 6.5%. Is now the time to buy Royal Caribbean? Access our full analysis report here, it's free. Deckers's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 4 days ago when the stock dropped 19.9% on the news that the company reported weak first quarter 2025 results: both revenue and EPS guidance for the next quarter missed. The miss was largely due to macro uncertainty tied to global trade policies and softer-than-expected domestic demand, with management calling out the lack of visibility and stepping away from providing full-year guidance altogether. Still, the just-ended fourth quarter told a brighter story. Constant currency revenue rose 7.5%, led by a 10% jump in HOKA sales and a 3.6% gain in UGG, while EPS beat expectations handily. This strength was fueled by solid international growth and stable margins. Zooming out, we think this was a mixed quarter, and the weak guidance likely weighed on shares. Following the mixed performance, Evercore downgraded the stock from Buy to Neutral, adding, "Once a well-loved story with strong growth momentum and margin expansion, we think DECK might be entering a new phase of lower growth profile as we see signs of deceleration across its two key brand growth engines – UGG and HOKA." Deckers is down 47.4% since the beginning of the year, and at $107.66 per share, it is trading 51.7% below its 52-week high of $223.11 from January 2025. Investors who bought $1,000 worth of Deckers's shares 5 years ago would now be looking at an investment worth $3,308. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
