Deckers Outdoor Corporation Sees Massive Growth Amid Solid Earnings
Deckers Outdoor Corporation (DECK), a California-based footwear and apparel giant, boasts a market cap of $29.1 billion. Known for its popular brands such as UGG®, HOKA®, Teva®, Koolaburra®, and AHNU®, Deckers has spent over five decades transforming niche footwear into lifestyle staples, embraced by consumers around the globe.
Stock Performance: Exceeding Industry Standards
Over the past year, Deckers’ shares have surged by 75.2%, significantly outpacing the S&P 500 Index ($SPX), which saw a 31.8% increase in the same period. In 2024, Deckers’ stock continued on this upward trend, achieving a remarkable 72.1% gain compared to the SPX’s modest 25.8% return year-to-date.
When evaluated against the Fidelity MSCI Consumer Discretionary Index ETF (FDIS), which returned 31.4% over the last 52 weeks and 22.6% YTD, Deckers clearly leads the pack.
Q2 Earnings: A Strong Performance
After Deckers reported its fiscal 2025 Q2 earnings on October 24, shares jumped over 10% in the following trading session. The company’s net sales experienced a notable increase of 20.1% year-over-year, reaching $1.3 billion, while earnings per share (EPS) rose 39.5% to $1.59.
This notable success in Q2 was largely driven by strong sales from HOKA and UGG. HOKA’s net sales soared 34.7% to $570.9 million, leveraging its growing popularity, while UGG reported a 13% increase, reaching $689.9 million in net sales, reinforcing its status as a favorite among consumers.
Future Projections and Analyst Sentiments
For the fiscal year ending in March 2025, analysts predict a 12.8% rise in DECK’s EPS to $5.48. Impressively, the company has surpassed Wall Street’s earnings estimates in each of the last four quarters.
Currently, among 20 analysts monitoring Deckers’ stock, the consensus rating stands at “Moderate Buy.” This is based on nine “Strong Buy,” two “Moderate Buy,” and nine “Hold” recommendations. Compared to three months ago, when 12 analysts endorsed a “Strong Buy,” Wall Street appears to have tempered its excitement.
Stock Targets and Market Outlook
Deckers shares are currently valued above TD Cowen’s updated price target of $185 as of October 25. The stock also trades near the average analyst price target of $191.65, while the highest target at $232 indicates a potential upside of about 21% from current levels.
On the date of publication, Anushka Mukherjee had no direct or indirect positions in any of the securities mentioned. All information provided here is strictly for informational purposes. For more details, please refer to the Barchart Disclosure Policy.
The views expressed in this article are those of the author and may not represent the views of Nasdaq, Inc.
