Latest news with #HOKA
Forbes
5 days ago
- 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
6 days ago
- 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
7 days ago
- 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
Yahoo
26-05-2025
- Business
- Yahoo
Evercore ISI Downgrades Deckers Outdoor (DECK) Stock, Slashes PT
On May 23, Evercore ISI analysts changed their stance on Deckers Outdoor Corporation (NYSE:DECK)'s stock, downgrading it from 'Outperform' to 'In-Line,' and significantly slashing its price objective to $110 from the prior target of $235. The downgrade demonstrates the worries related to its growth prospects, mainly for its key brands such as UGG and HOKA. A customer browsing a retail store, finding the perfect footwear for their casual outfits. The firm's analysts hinted at signs of deceleration in Deckers Outdoor Corporation (NYSE:DECK)'s 2 main brand growth engines. These used to drive the company's strong momentum and margin expansion. As per the analysts, while Deckers Outdoor Corporation (NYSE:DECK) was a well-established story in the broader market, it can witness a lower growth profile moving forward. Furthermore, the analysts highlighted increased external pressures, such as tariffs and weaker consumer sentiment, which can impact Deckers Outdoor Corporation (NYSE:DECK)'s performance. The new outlook by the firm hints at a more cautious approach, waiting for more positive signals that can indicate a potential for outperformance moving forward. Therefore, a revised price objective of $110 reflects a significant decline from the prior target, which hints at a recalibration of expectations for Deckers Outdoor Corporation (NYSE:DECK)'s stock value. 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.
