Up 1,000% Over the Past 10 Years, Can This Stock Continue to Climb Higher?

Core Insights - Deckers Brands has experienced significant momentum, with a stock increase of 75% over the past year, primarily driven by the HOKA brand [1][2] - The company reported strong earnings results and raised its guidance, indicating continued growth potential [2] Financial Performance - Deckers' overall revenue increased by 20% to $1.31 billion, with earnings per share (EPS) rising 39$1.59, surpassing analysts' estimates [6] - Domestic sales rose 14% to $853.9 million, while international sales climbed 33$457.4 million [6] - Gross margin improved by 250 basis points to 55.9%, attributed to a higher mix of HOKA sales and higher-margin UGG products [8] Brand Performance - HOKA revenue surged 35% year over year to $570.9 million, surpassing$2 billion in annual revenue, with strong growth from popular models like Clifton and Bondi [3][4] - UGG sales rose 13% year over year to $689.9 million, driven by new seasonal colors and effective inventory management [5] Market Strategy - Deckers is expanding HOKA into adjacent categories beyond running, such as trail and lifestyle, while also upgrading popular styles [10] - The company is increasing its retail presence in major international cities, enhancing brand awareness [4] Future Outlook - Deckers projects full-year sales growth of 12$4.8 billion, with an expected gross margin between 55% and 55.5% [9] - EPS is projected to be in the range of $5.15 to$5.25, reflecting a positive outlook following a recent stock split [9] Valuation - Deckers stock trades at a forward price-to-earnings (P/E) multiple of 27, which is competitive compared to Nike and On Holding [11][12] - The company has a strong balance sheet with $1.23 billion in cash and no debt, providing flexibility for growth investments or stock buybacks [8]