Deckers Outdoor Corporation DECK is likely to register an increase in the top line when it reports fourth-quarter fiscal 2024 earnings results on May 23 after market close. The Zacks Consensus Estimate for revenues is pegged at $876.1 million, which indicates an improvement of 10.7% from the prior-year reported figure.
The company, renowned for its design, marketing and distribution of footwear, apparel and accessories, is expected to observe a year-over-year decrease in its bottom line. Although the Zacks Consensus Estimate for fourth-quarter earnings per share has risen by 4.2% to $2.75 in the past 30 days, it still suggests a decline of 20.5% from the year-ago period.
Deckers has maintained a trailing four-quarter earnings surprise of 32.1%, on average. In the last reported quarter, this Goleta, CA-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 32.5%.
Key Factors to Note
Deckers’ fourth-quarter performance is likely to have benefited from the acceleration of omnichannel capabilities, a customer-centric approach and marketing strategies. The company’s focus on expanding brand assortments, introducing an innovative line of products and enhancing the direct-to-consumer business may have acted as tailwinds. Additionally, the strategic price increases of products might have supported the top line in the quarter under review.
Keeping pace with changing trends, Deckers has constantly been developing its e-commerce portal to capture incremental sales. The company has been making substantial investments to strengthen its online presence and enhance the shopping experience.
We expect strength in the HOKA ONE ONE brand, with sales anticipated to increase 22.5%. However, the Teva brand is likely to face challenges, leading to an estimated 19.8% decline in sales. Additionally, the Sanuk brand is expected to experience a more significant decrease of 31.9%. For the UGG brand, we expect a decline of 10.3% in sales.
Additionally, the company faces challenges in the SG&A domain. We anticipate SG&A expenses to increase 27.9% year over year in the quarter. As a percentage of net sales, we expect the metric to increase 790 basis points to 44.6%.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Deckers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Deckers has an Earnings ESP of +11.68% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat this season:
Target TGT currently has an Earnings ESP of +6.39% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at $2.05, flat year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $24.5 billion, which indicates a drop of 3.2% from the figure reported in the prior-year quarter. TGT has a trailing four-quarter earnings surprise of 27.1%, on average.
Macy’s M currently has an Earnings ESP of +48.57% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 18 cents suggests a sharp decline from the year-ago reported number of 56 cents.
Macy’s top line is also expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which suggests a drop of 3.2% from the prior-year quarter. Macy’s has a trailing four-quarter earnings surprise of 47.7%, on average.
American Eagle Outfitters AEO currently has an Earnings ESP of +6.84% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 27 cents suggests a jump of 58.8% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 5.9% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Macy’s, Inc. (M) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
