Robert Way/iStock Editorial via Getty Images I last covered Deckers Outdoor Corporation (NYSE:DECK) on June 6th, where I believed that the stock was overvalued with excessive investor optimism baked into its valuation, making it prone to a sharp pullback, especially as revenue growth rates slow from their prior levels. I did emphasize, however, that the company had been operating resiliently, as it saw its HOKA and UGG brands continuing to outperform as it leveraged a robust product portfolio. It is also ma ...

Deckers owns various shoe brands including its big two brands, Hoka and Ugg. Net sales for both of these brands were up in Q1, leading to overall revenue growth of 22%. The company's Q1 gross margin of nearly 57% was up sharply from a gross margin of just north of 51% in the prior-year period. And this major improvement led to strong bottom-line profitability. Shares of shoe company Deckers Outdoor (DECK 8.12%) jumped on Friday after the company reported financial results for its fiscal first quarter of 202 ...

The Zacks Consensus Estimate for Abercrombie & Fitch's current financial-year revenues and earnings calls for growth of 10.4% and 47.3%, respectively, from the year-ago reported figures. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 210.3%, on average. SG&A expenses climbed 22.3% year over year to $337.2 million. As a percentage of net sales, SG&A stood at 40.9%, 10 basis points higher than the last year. We had anticipated a year-over-year increase of 20.4% in the metric. The company ...

The footwear company's quarterly gross margin was 56.9% compared to 51.3% a year ago. Operating income was $132.8 million compared to $70.7 million a year earlier. During the first fiscal quarter, the company repurchased approximately 177 thousand shares of its common stock for a total of $152.0 million at a weighted average price paid per share of $858.79. Photo by Nattawit Khomsanit via Shutterstock Deckers Outdoor Corporation DECK shares are trading higher today. Check This Out: Deckers Outdoor Q1 Earnin ...

Deckers Brands (DECK) shares surged Friday, a day after the footwear company released earnings that showed sales for its popular brands Hoka and Uggs jumped 30% and 14%, respectively, compared to the same time last year. Key Takeaways Deckers reported $825.3 million in sales for the first quarter of fiscal 2025, up just over 22% from $675.8 million a year ago, and above analysts' expectations, according to estimates compiled by Visible Alpha. Popularity of Hoka, Uggs Boost Sales Much like it reported in May ...

Financial Data and Key Metrics - SG&A expenses in Q1 were $337 million, up 22% YoY from $276 million, representing 40.9% of revenue compared to 40.8% last year [2] - Tax rate was 22.5%, up from 21.9% in the prior year, contributing to diluted EPS of $4.52, an 87% increase YoY from $2.41 [3] - Cash and equivalents stood at $1.44 billion as of June 30, 2024, with inventory up 2% YoY to $753 million [4] - The company repurchased $152 million worth of shares at an average price of $858.79, with $790 million remaining under the stock repurchase authorization [4] Business Line Performance - HOKA brand revenue increased 30% YoY to $545 million, driven by strong demand for key styles like Clifton and Bondi, as well as emerging franchises like Mach, Transport, and Kawana [88] - UGG brand revenue grew 14% YoY to $223 million, driven by strong full-price selling of iconic franchises and increased adoption of the Golden Collection [36] - HOKA's DTC revenue increased 33% YoY, while wholesale revenue grew 28% YoY, reflecting balanced growth across channels [35] Market Performance - HOKA experienced robust growth in international markets, particularly in China and EMEA, with DTC growth of 31% in the US and 21% internationally [62] - UGG saw strong DTC performance in both the US and international regions, with the Tasman franchise and Golden Collection driving year-round demand [37] Strategic Direction and Industry Competition - The company is focused on expanding HOKA's global awareness and market share, particularly in international markets, while enhancing DTC growth through consumer acquisition and retention [90] - UGG is leveraging collaborations and marketing activations to maintain consumer interest and drive year-round demand for its products [10][11] - The company is investing in innovation, with new HOKA styles like Skyward X and Cielo X1 performing well and driving incremental volume [88] Management Commentary on Operating Environment and Future Outlook - Management expects total company revenue to grow approximately 10% YoY to $4.7 billion in FY2025, with HOKA growing 20% and UGG growing in the mid-single-digit range [23] - Gross margin is expected to increase to 54%, up 50 basis points from prior guidance, driven by strong Q1 results [23] - The company anticipates a more normalized promotional environment in FY2025, with higher freight costs impacting margins in the remaining quarters [24] Other Important Information - The company divested the Sanuk brand, which has been removed from forward-looking guidance [41] - A 6-for-1 forward stock split has been approved, pending stockholder approval at the 2024 Annual Meeting [42] Q&A Session Summary Question: Capital Allocation Priorities - The company is focused on organic growth and maintaining a strong balance sheet, with share repurchases remaining a priority. Dividends and M&A are under discussion but no announcements have been made [33][56] Question: HOKA's Momentum and Distribution Strategy - HOKA's strong performance is attributed to its global multichannel strategy, with balanced growth across DTC and wholesale channels. The company is confident in achieving its 20% growth target for the year [38][50] Question: New Product Launches and Segmentation - HOKA's Mach 6 and Skyflow launches have been successful, with the Mach 6 becoming a top 5 revenue style. The company is focusing on segmentation to differentiate products across distribution points [19][52] Question: HOKA Apparel and Revenue Shape - HOKA's apparel launch, Airolite, is performing well in limited distribution. The company is investing in leadership and infrastructure to expand its apparel offerings [57][58] Question: Freight Costs and Margin Impact - Freight costs are expected to be a headwind for the remainder of FY2025, with a negative 80 basis points impact on margins [70] Question: Inventory and Order Book Trends - Inventory is up 2% YoY, with UGG in a strong position heading into the fall season. The company's order book reflects demand exceeding supply, indicating a healthy marketplace [130][133] Question: HOKA DTC Growth and International Expansion - HOKA's DTC growth is driven by strong performance in North America and international markets, with Asia showing promising growth potential [134][135] Question: Store Expansion Strategy - The company is taking a strategic approach to store expansion, focusing on flagship locations in key cities for UGG and a more aggressive retail build-out for HOKA in international markets [145]

It's tough to get a firm handle on this market. One day it looks like a trading rotation into undervalued equities from big run-ups elsewhere, the next day it's a major selloff across the board. This day, we were back to the "rotation" scenario: the Dow gained +81 points, +0.20%, and the small-cap Russell 2000 kept up its two-week dominance, +1.47%, while the S&P 500 sold off another -0.51% and the Nasdaq -0.93% following the singleworst trading day of 2024 (so far). Two major retailers reported this aftern ...

The reported revenue compares to the Zacks Consensus Estimate of $805.49 million, representing a surprise of +2.47%. The company delivered an EPS surprise of +25.91%, with the consensus EPS estimate being $3.59. Here is how Deckers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: For the quarter ended June 2024, Deckers (DECK) reported revenue of $825.35 million, up 22.1% over the same period last year. EPS came in at $4.52, compared ...

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estim ...

Financial Performance - First quarter fiscal 2025 revenue increased 22% to $825 million compared to $675.8 million, with a constant currency increase of 23%[6] - Diluted earnings per share (EPS) rose 87% to $4.52 from $2.41 in the same period last year[6] - The company raised its fiscal year 2025 diluted EPS guidance to a range of $29.75 to $30.65[6] - The company expects net sales to increase approximately 10% to $4.7 billion for the full fiscal year 2025[12] Sales Performance - Direct-to-Consumer (DTC) net sales increased 24% to $310.6 million, while wholesale net sales increased 21% to $514.8 million[7] - HOKA brand net sales surged 29.7% to $545.2 million, while UGG brand net sales increased 14% to $223 million[7] Profitability - Gross margin improved to 56.9% from 51.3% year-over-year[7] Shareholder Actions - The company repurchased approximately 177,000 shares for a total of $152 million at an average price of $858.79 per share[8] Cash Position - Cash and cash equivalents were $1.438 billion, up from $1.047 billion year-over-year[11] Strategic Decisions - The company plans to divest the Sanuk brand, with the transaction expected to close in August 2024[8]