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Goleta, California-based Deckers Outdoor Corporation (DECK) is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities. With a market cap of $24.7 billion, Deckers' proprietary brands include UGG, HOKA, Teva, Sanuk, and Koolaburra. It is expected to release its Q2 earnings on Thursday, Oct. 24.
Ahead of the event, analysts expect Deckers to report an adjusted profit of $1.21 per share, up 6.1% from $1.14 per share reported in the year-ago quarter. Moreover, the company has surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS of $0.75 for the last reported quarter exceeded the consensus estimates by 25%.
For fiscal 2025, analysts expect Deckers to report an adjusted EPS of $5.21, up 7.2% from $4.86 in fiscal 2024. In fiscal 2026, its adjusted EPS is expected to grow 11.7% year-over-year to $5.82.
DECK has gained 45.4% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 20.6% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.2% returns during the same time frame.
Shares of Deckers Outdoor surged 6.3% after the release of its impressive Q1 earnings on July 25. The company reported an impressive 22.1% year-over-year sales growth to $825.3 million, while its net margin expanded by 4.6% to 14%. This translated into a massive 81.9% growth in net income, reaching $115.6 million. This exceptional growth was primarily attributed to the strong performance of HOKA and UGG brands.
After observing the robust Q1 growth in profitability, Deckers raised its full-year earnings guidance, further bolstering investor confidence.
The consensus opinion on DECK stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, 12 recommend “Strong Buy,” one suggests “Moderate Buy,” and six advise a “Hold” rating.
The mean price target of $178.99 suggests a potential upside of 10.5% from current price levels.
On the date of publication, Aditya Sarawgi 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.
