DECK
Deckers tops first-quarter earnings expectations but shares fall on cautious revenue outlook
Article Summary
BUY- Deckers Brands (NYSE: DECK) fell 3.5% in premarket trading after reporting record first-quarter revenue and higher-than-expected earnings, driven by strong international and direct-to-consumer demand.
- Deckers Outdoor posted record revenue of $1.02 billion, exceeding $1 billion for the first time in its history, with HOKA and UGG delivering strong growth.
- Full-year earnings guidance was raised slightly, but revenue remained slightly below expectations, reflecting cautious expectations.
- Bank of America maintained a Neutral rating, while Stifel lowered its price target to $133 from $144, citing slower Hoka DTC growth and a lower P/E.
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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 ? | 10.8% | 25% | 35.0 ptsBelow Screener (10.8%) - Modest outlook |
| Target Price Upside ? | 31.9% | 20% | 85.0 ptsLarge Upside (31.9%) - Target: $123.42 vs Current: $93.60 |
| Gross Margin % ? | 57.7% | 15% | 80.0 ptsVery Healthy (57.7%) - High-quality margins |
| Drawdown from 52-Wk High ? | -26.0% | 15% | 80.0 ptsSolid Dip (-26.0%) - Good entry zone |
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.