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Valued at a market cap of $23.9 billion, Deckers Outdoor Corporation (DECK), based in Goleta, California, is a major player in the apparel and footwear industry, specializing in niche footwear and accessories.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Deckers Outdoor fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the footwear & accessories industry. It leverages its brand power, led by UGG and HOKA, to drive significant sales growth.
The company’s diversification into year-round styles reduces seasonality impacts, while HOKA’s growth contributes to a more balanced revenue stream. Additionally, Deckers' expanding direct-to-consumer business boosts profit margins and enhances customer engagement, providing valuable insights for product development and marketing.
Despite its strengths, the stock currently trades 15.9% below its 52-week high of $184.48, which it touched on June 3. DECK stock has declined 8.5% over the past three months, underperforming the S&P 500 Index’s ($SPX) 3% gains during the same time frame.
However, DECK's prospects shine brighter over the long term. Shares of the footwear designer have surged 39.2% on a YTD basis and jumped a whopping 78% over the past 52 weeks, outperforming SPX’s 18.1% rise on a YTD basis and 26.6% gain over the past year.
Despite recent volatility, DECK has been trading above its 50-day moving average for the past few trading sessions and has remained above its 200-day moving average since last year, indicating a bullish trend.
Deckers Outdoor has outperformed the market recently due to the strong performance of its Hoka brand, which has seen rapid growth in sales and popularity. Hoka’s appeal extends across multiple segments, including running, comfort, and fashion, making it a key driver of revenue.
DECK announced its Q1 earnings report on Jul. 25, and its stock shot 6.3% in the subsequent trading session. Investors were happy with its higher sales, rising profits, and increased full-year forecast. Additionally, the company successfully beat its revenue and EPS predictions.
Deckers Outdoor’s top competitor, NIKE, Inc. (NKE), has significantly underperformed DECK over the past year. Shares of NIKE plunged 25.7% in 2024 and dropped 16.2% over the past year, sharply contrasting DECK's robust double-digit returns over the same time frame.
Analysts remain moderately bullish about DECK’s prospects. The stock has a consensus “Moderate Buy” rating from the 19 analysts covering it, and its mean target of $1,063.32 suggests a premium of 585.6% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
