DECK
Why Back-to-school Could be Critical for Hoka
Article Summary
HOLD- Deckers Outdoor (NYSE: DEK) reported a $1 billion quarter led by Hoka, but Wall Street is skeptical Deckers Outdoor can continue to bring the heat in fiscal 2027 after Hoka posted net sales of $703.5 million, a 7.7% increase compared to $653.1 million the same time last year, with analysts citing missed first-quarter estimates and a second quarter guide that was below consensus.
- The company expects Hoka to contribute high single-digit percentage growth in the second quarter, with acceleration in second half driven primarily by the Hoka brand and international wholesale and distributor business.
- Analyst Jay Sole noted that the stock may lag in near-term for two reasons: Some may perceive Deckers' second quarter 2027 guidance as slightly underwhelming, while others believe guidance assumes Hoka's sales growth rate accelerates over the course of the year and some may be skeptical Hoka can achieve this.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 7.5% | 25% | 35.0 ptsBelow Screener (7.5%) - Weak growth |
| EPS Growth Next 5Y ? | 10.4% | 25% | 35.0 ptsBelow Screener (10.4%) - Modest outlook |
| Target Price Upside ? | 27.2% | 20% | 75.0 ptsSignificant Upside (27.2%) - Target: $122.15 vs Current: $96.04 |
| Gross Margin % ? | 57.7% | 15% | 80.0 ptsVery Healthy (57.7%) - High-quality margins |
| Drawdown from 52-Wk High ? | -24.1% | 15% | 40.0 ptsMild Pullback (-24.1%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About DECK
- Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally.
- The company offers footwear, apparel, and accessories under the UGG brand; footwear, such as running, trail, hiking, fitness, and lifestyle shoes, as well as apparel and accessories under the HOKA brand; and sandals, shoes, and boots under the Teva brand name.
- It also provides a casual footwear fashion line under the Koolaburra brand name; and footwear products under the AHNU brand name.
- The company sells its products through domestic and international retailers, international distributors, and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores.
- Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.