Is Deckers Stock a Buy After Its Beat-And-Raise Quarter?
Deckers Outdoor stock is higher Friday after the footwear maker reported strong earnings and guidance, but what is Wall Street saying? Here's what you need to know.
Deckers Outdoor (DECK) stock is trading near the top of the S&P 500 Friday after the footwear giant beat top- and bottom-line expectations for its fiscal second quarter and raised its full-year profit forecast.
In the three months ended September 30, Deckers' revenue increased 20.1% year over year to $1.3 billion, driven by 34.7% growth in its Hoka brand to $570.9 million. Its earnings per share (EPS) were up 39.5% from the year-ago period to $1.59.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $1.2 million and earnings of $1.24 per share, according to CNBC.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"These excellent results reflect the continued strength of our full-price demand enabled by innovative products that resonate with consumers, disciplined global marketplace management and thoughtful product segmentation," said Deckers CEO Stefano Caroti on the company's conference call.
Deckers' 21% revenue growth in the first half of its fiscal year was driven by "Hoka increasing 32%, Ugg growing 13%, total company international increasing 28% and total company business to consumer (B2C) and wholesale, both growing more than 20% above last year," Caroti added.
As a result of its outperformance in the first half of the year, Deckers raised its full-year outlook. The company now anticipates revenue to increase approximately 12% to $4.8 billion and EPS to arrive in the range of $5.15 to $5.25.
"Our brands are well-positioned for the holiday season and on track to achieve an increased outlook for the full fiscal year," Caroti said.
Is Deckers stock a buy, sell or hold?
Deckers is having a stellar year on the price charts, too, with shares up 53% since the start of 2024. And Wall Street thinks the consumer discretionary stock has more room to run.
According to S&P Global Market Intelligence, the average analyst target price for DECK stock is $187.97, representing implied upside of about 10% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Truist Securities is one of the more bullish outfits on the large-cap stock with a Buy rating and $205 price target.
"With products continuing to resonate extremely well, deep innovation pipelines for both brands, still-low-but-building brand awareness abroad and management's thoughtful approach to marketplace segmentation, we think DECK is well-positioned to maintain a robust growth trajectory," says Truist Securities analyst Joseph Civello.
The analyst adds that "Hoka's continued outperformance and the success they are seeing from higher-price-point franchises strengthens our conviction on long-term margin expansion opportunities."
Related Content
-
Is Home Insurance Tax Deductible?With home insurance rates on the rise, you might be hoping to at least claim the cost as a tax deduction. Here's what you need to know ahead of tax season.
-
The December Jobs Report Is Out. Here's What It Means for the Next Fed MeetingThe December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
Trump Signals Plan to Ban Institutional Investors From Buying Single-Family HomesThe president says the move could improve housing affordability. Here’s what the data shows about investor ownership, recent buying trends and what it could mean for homebuyers.
-
The December Jobs Report Is Out. Here's What It Means for the Next Fed Meeting
The December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
4 Simple Money Targets to Aim for in 2026 (And How to Hit Them), From a Financial PlannerWhile January is the perfect time to strengthen your financial well-being, you're more likely to succeed if you set realistic goals and work with a partner.
-
I'm a Wealth Adviser: Everyone Needs an Estate Plan (Seriously, Even You)If you've acquired assets over time, even just a home and some savings, you have an estate. That means you need a plan for that estate for your beneficiaries.
-
How to Be a Smart Insurance Shopper: The Price Might Be Right, But the Coverage Might Not BeChoosing the cheapest policy could cost you when you have a loss. You'll get the best results if you focus on the right coverage with the help of a good agent.
-
7 Reasons Why Your Portfolio Needs Short-Term Bond ETFsMoney market funds are a safe option for your cash, but ultra-short and short-term bond ETFs also deserve consideration. Here are seven reasons why.
-
Nasdaq Takes a Hit as the Tech Trade Falters: Stock Market TodayThe Dow Jones Industrial Average outperformed on strength in cyclical stocks.
-
I'm a Wealth Planner: Forget 2026 Market Forecasts and Focus on These 3 Goals for Financial SuccessWe know the economy is unpredictable and markets will do what they do, no matter who predicts what. Here's how to focus on what you can control.
-
I'm a Financial Adviser: Why In-Person Financial Guidance Remains the Gold StandardFace-to-face conversations between advisers and clients provide the human touch that encourages accountability and a real connection.
