Deckers(DECK) ZACKS·2025-01-23 17:36Core Viewpoint - Deckers Outdoor Corporation (DECK) has significantly outperformed the retail-apparel and shoes industry, driven by enhanced operational efficiency and growth initiatives, with a stock price increase of 41.4% over the past three months compared to the industry's 22.2% growth [1]. Performance Metrics - DECK's stock closed at 198.50 and 218.39, reached on January 21, 2025 [6]. Brand Performance - The company's flagship brands, UGG and HOKA, are key drivers of growth, with HOKA expected to become a multi-billion-dollar brand and UGG maintaining its status as a global lifestyle leader [8]. - In Q2 of fiscal 2025, HOKA sales increased by 34.7% year-over-year, while UGG sales grew by 13% [9]. Direct-to-Consumer (DTC) Growth - DECK's DTC business saw a 19.9% year-over-year increase in net sales, reaching 913.7 million, driven by strong performances from HOKA and UGG [11]. - HOKA and UGG's wholesale revenues rose by 33% and 14%, respectively, aided by early inventory shipments [12]. International Expansion - International sales grew by 33% year-over-year in Q2, supported by strong demand for UGG and HOKA [13]. - The company expects a 15.5% increase in revenues from international regions in fiscal 2025 [14]. Financial Outlook - DECK projects fiscal 2025 revenues of 5.15-5.56 per share [18]. - The Zacks Consensus Estimate for sales in the current and next fiscal years is projected at 5.40 billion, indicating year-over-year growth of 14.1% and 10.4%, respectively [18]. Investment Appeal - DECK's strong market position, driven by innovation, robust DTC growth, and expanding global reach, makes it an attractive option for long-term investment [21].