Latest news with #DeckersOutdoor
Globe and Mail
a day ago
- Business
- Globe and Mail
Should You Invest $1,000 in Deckers Outdoor Today?
Shares of Deckers Outdoor (NYSE: DECK) continue to tumble. The parent company of footwear brands including UGG, HOKA, Teva, and Ahnu has fallen roughly 50% since peaking early this year at over $200 per share. It never feels good to buy a stock that continues to go down. It's only human to want to buy winners. The reality is that all companies face adversity at times; the trick is knowing when the company is working through minor bumps or if there are serious problems underneath the surface. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » So, I took a peek into the business to see which side of the coin Deckers Outdoor lands on. Here is whether you should invest $1,000 into Deckers stock today. Core brands continue to lead the way despite some industry headwinds Deckers Outdoor's two primary brands are UGG, a California lifestyle brand most known for its boots, and HOKA, a premium running shoe brand. Together, UGG and HOKA combined for $4.76 billion of the company's $4.99 billion total sales in fiscal 2025. The good news is that both brands continue to perform well. Sales of UGG and HOKA increased 13.1% and 23.6%, respectively, in fiscal 2025. But Q4 sales growth was much lower, just 3.6% for UGG and 10% for HOKA in Q4. In other words, sales momentum has dramatically slowed. Slowing growth isn't ideal, but there is a fair amount of evidence that Deckers is dealing with industrywide headwinds rather than internal issues. Uncertainty regarding tariffs has complicated the supply chain for footwear companies, which primarily manufacture outside of the United States. Deckers manufactures most of its products in Vietnam. Management estimated that the company's cost of goods sold may increase by $150 million in fiscal 2026 due to tariffs, and is unsure how that may impact consumer demand. The company declined to offer financial guidance for the upcoming year. The stock's decline may have created a buying opportunity -- though risks exist Shoes are a discretionary spend for most consumers, so economic uncertainty can easily disrupt business. However, it could be a buying opportunity for the stock if these challenges are temporary and the brands themselves remain strong with buyers. Deckers is holding up far better in this operating environment than Nike, which reported a 9% year-over-year sales decline in its most recent quarter. I think it's a positive sign that HOKA is Deckers Outdoor's fastest-growing brand, while Nike, the industry leader, is struggling. If you zoom out, the HOKA brand's recent growth is no fluke. The brand's sales have skyrocketed from just $352 million in fiscal 2020. Deckers is also well-equipped to navigate a challenging business climate, with a debt-free balance sheet and nearly $1.9 billion in cash on hand. Management re-upped the company's share repurchase program in Q4 as well, bringing its authorized buybacks to $2.5 billion, or 15% of its current market capitalization. That's going to do wonders in establishing a solid floor for earnings-per-share growth. Whether it's sneakers or apparel, fashion brands are a popularity contest. The risk in these stocks is that the brands lose their appeal. Fortunately, that doesn't seem to be the case here. Should you invest $1,000 in Deckers Outdoor stock today? Things could always change in the future, but Deckers Outdoor seems poised for a bounce-back once the economic landscape improves. Consumer sentiment has taken a clear hit amid the uncertainty in recent months. The negativity is weighing on shoppers, and the stock's steep decline could be as simple as the market lowering growth expectations. Earlier this year, analysts were anticipating approximately 15% annualized long-term earnings growth from Deckers. Those estimates have dropped to just 6.4% today. Deckers traded at a price-to-earnings ratio of 37 in January, but that has plunged to just 17. Even modest sales growth coupled with those massive buybacks should generate the mid-single-digit earnings growth analysts now expect, and there could be significant upside potential if growth eventually reaccelerates and drives that valuation higher again. The stock can always go lower, but the long-term risk-to-reward dynamic looks attractive here, making Deckers Outdoor a fine buy-and-hold candidate to park $1,000 in. Should you invest $1,000 in Deckers Outdoor right now? Before you buy stock in Deckers Outdoor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Deckers Outdoor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
4 days ago
- Business
- Yahoo
UBS Upholds Buy Recommendation on Deckers Outdoor (DECK)
On June 5, UBS analysts maintained a Buy rating on Deckers Outdoor Corporation (NYSE:DECK) with a price target of $169. The analysts expect Decker's EPS to top market estimates over the coming year as sales projections increase for its Hoka brand. They also anticipate UGG to keep up its record as a major global casual footwear brand. A customer browsing a retail store, finding the perfect footwear for their casual outfits. The analysts were confident that Deckers Outdoor Corporation (NYSE:DECK) could deliver a low double-digit compound annual sales growth. They forecast that this growth could drive Deckers' forward PE ratio over 20x, compared to the present 16.7x. The $169 price target by UBS reflects a 60% upside for DECK. The stock has plummeted nearly 47% over the last six months, which signals a buying opportunity. After discussions with company management on June 4, the analysts were optimistic about Deckers Outdoor Corporation (NYSE:DECK)'s potential for growth. Despite the market showing caution with reference to the Hoka brand's capacity to sustain robust growth, UBS believes that DECK is perfectly tackling concerns about industry competition, evolving fashion trends, and dependence on Clifton and Bondi franchises. The analysts see double-digit revenue growth for Hoka in the next few years. Deckers Outdoor Corporation (NYSE:DECK) designs and markets premium footwear and apparel worldwide with brands like UGG and HOKA. The company was established in 1973 and is headquartered in Goleta, California. While we acknowledge the potential of DECK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
Forbes
30-05-2025
- Business
- Forbes
Why Deckers Stock Is A No-Brainer After A 50% Crash?
Deckers Outdoor (NYSE: DECK) has faced significant losses in 2025. The stock has declined almost 50% year-to-date, whereas the S&P 500 has made slight gains. However, do not equate the stock's fall with a failing business. With shares priced around $104, DECK looks appealing to long-term investors who can overlook short-term distractions and appreciate the fundamental value that lies beneath. See Buy or Sell Deckers Outdoor Stock? We reach our conclusion by evaluating the present valuation of DECK stock against its operational performance during recent years, along with its current and historical financial health. Our assessment of Deckers Outdoor based on essential criteria such as Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company showcases a very strong operational performance and financial condition, outlined in detail below. Nevertheless, for investors looking for lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and delivering returns exceeding 91% since its inception. Deckers reported mixed fiscal Q4 results—surpassing earnings expectations but providing cautious guidance that made investors uneasy. Principal brands HOKA and UGG fueled growth, with HOKA increasing by 10% in Q4 and 23.6% for the total year, while UGG rose by 3.6% and 13.1%, respectively. Overall Q4 revenue climbed 6.5% to over $1 billion, and EPS rose to $1.00 from $0.82. In the face of inflation and tariff pressures, management withheld full-year guidance but anticipated Q1 sales between $890–$910 million, representing an 8%–10% increase year-over-year. Despite broader economic challenges, Deckers demonstrates resilience with the potential for enhanced growth as conditions improve. The current stock price does not signify its operational strength. DECK is trading at a price-to-earnings ratio of about 17x—down from more than 32 at the close of 2024 and significantly below the current P/E of 26 for the S&P 500. Consider this: Deckers generates over $1 billion in annual cash flow with a $16 billion market capitalization. This equates to a 6% cash yield. When combined with a 16% revenue growth in the past year, you have a high-quality business trading at a discounted price. In the last three years, revenue has surged at an impressive annual rate of 16.4%—more than triple the pace of the S&P 500. Operating margins achieved an outstanding 24.9% over the last four quarters (up 210 basis points year-over-year), compared to 13.2% for the S&P 500. Net income margins were even more impressive at 19.4%. This is a brand-driven company featuring pricing power, a loyal customer base, and strict cost management. Deckers' balance sheet is exceptionally solid. With only $276 million in debt and $2.2 billion in cash, this company is well-equipped to endure uncertainties. Its debt-to-equity ratio stands at a slim 1.3%, in contrast to nearly 20% for the average S&P 500 company. Half of its assets are in cash. That's significant leverage when the market presents bargains. Deckers Outdoor has historically experienced sharper declines than the S&P 500 during significant market downturns but has exhibited robust recovery potential. During the 2022 inflationary crisis, DECK dropped 48%—nearly twice the S&P 500's decrease—but rebounded within a year and reached new peaks by early 2025. In the 2020 Covid-related crash, it sank 55%, yet recovered in under four months. Throughout the 2008 financial crisis, DECK fell by 77.1% but returned to its peak by mid-2010. Although volatile, DECK has demonstrated resilience over time. Our dashboard How Low Can Stocks Go During A Market Crash showcases how key stocks performed during and after the last six market crashes. To summarize: The market has yet to acknowledge this opportunity—that gives you an advantage. Deckers is a high-quality growth story facing temporary challenges, but its fundamentals remain strong. The brands are robust, the balance sheet is healthy, and the valuation is attractive. That being said, investing in a single stock can carry risks. You might consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (comprising the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. What's the reason? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks has provided a responsive approach to maximize returns during positive market conditions while minimizing losses when markets decline, as detailed in RV Portfolio performance metrics.
Yahoo
28-05-2025
- Business
- Yahoo
KeyBanc Downgrades Deckers Outdoor (DECK) Stock to Sector Weight
On May 23, analysts at KeyBanc Capital Markets adjusted their stance on Deckers Outdoor Corporation (NYSE:DECK)'s stock, downgrading it from 'Overweight' to 'Sector Weight.' This downgrade came after the company released its Q4 2025 earnings, which were better than expected but highlighted numerous issues. A customer browsing a retail store, finding the perfect footwear for their casual outfits. Ashley Owens, the firm's analyst, mentioned that HOKA brand's sales performance came lower than expected and that its growth momentum continues to decelerate as it enters the new quarter. As per the analyst, this slowdown was a result of several factors, such as less effective customer acquisition and broad-based economic pressures. Despite Deckers Outdoor Corporation (NYSE:DECK)'s successful performance, there are worries related to the HOKA brand's competitive position. It seems to be losing its position to other innovative running brands that are witnessing healthier performance. This transition in market dynamics resulted in worries related to HOKA's ability to maintain its market share. Also, Deckers Outdoor Corporation (NYSE:DECK)'s emphasis on wholesale door growth and the expected unfavourable impacts of price increases on demand were the factors resulting in the downgrade. Such strategies might harm the short-term prospects. Considering HOKA's brand awareness, which is at a high level in the US, KeyBanc expects limited upside for Deckers Outdoor Corporation (NYSE:DECK) over the near term. Deckers Outdoor Corporation (NYSE:DECK) is engaged in designing, marketing, and distributing footwear, apparel, and accessories for casual lifestyle use and high-performance activities. While we acknowledge the potential of DECK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DECK and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. 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
KeyBanc Downgrades Deckers Outdoor (DECK) Stock to Sector Weight
On May 23, analysts at KeyBanc Capital Markets adjusted their stance on Deckers Outdoor Corporation (NYSE:DECK)'s stock, downgrading it from 'Overweight' to 'Sector Weight.' This downgrade came after the company released its Q4 2025 earnings, which were better than expected but highlighted numerous issues. A customer browsing a retail store, finding the perfect footwear for their casual outfits. Ashley Owens, the firm's analyst, mentioned that HOKA brand's sales performance came lower than expected and that its growth momentum continues to decelerate as it enters the new quarter. As per the analyst, this slowdown was a result of several factors, such as less effective customer acquisition and broad-based economic pressures. Despite Deckers Outdoor Corporation (NYSE:DECK)'s successful performance, there are worries related to the HOKA brand's competitive position. It seems to be losing its position to other innovative running brands that are witnessing healthier performance. This transition in market dynamics resulted in worries related to HOKA's ability to maintain its market share. Also, Deckers Outdoor Corporation (NYSE:DECK)'s emphasis on wholesale door growth and the expected unfavourable impacts of price increases on demand were the factors resulting in the downgrade. Such strategies might harm the short-term prospects. Considering HOKA's brand awareness, which is at a high level in the US, KeyBanc expects limited upside for Deckers Outdoor Corporation (NYSE:DECK) over the near term. Deckers Outdoor Corporation (NYSE:DECK) is engaged in designing, marketing, and distributing footwear, apparel, and accessories for casual lifestyle use and high-performance activities. While we acknowledge the potential of DECK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DECK and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. 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
