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Valued at $29.1 billion by market cap, California-based Deckers Outdoor Corporation (DECK) stands tall as a global powerhouse in innovative footwear, apparel, and accessories, blending everyday casual style with high-performance functionality. With iconic brands like UGG®, HOKA®, Teva®, Koolaburra®, and AHNU®, Deckers has spent over 50 years transforming niche footwear into lifestyle legends loved by millions worldwide.
Shares of this footwear apparel company have rallied 75.2% over the past year, soaring beyond the broader S&P 500 Index’s ($SPX) 31.8% annual return during the same time frame. Plus, the stock has also staged an impressive performance in 2024, delivering a 72.1% gain, which outpaces the SPX’s modest 25.8% return on a YTD basis.
Narrowing the focus, the stock has also outperformed the Fidelity MSCI Consumer Discretionary Index ETF’s (FDIS) 31.4% return over the past 52 weeks and 22.6% gain on a YTD basis.
Following the company’s fiscal 2025 Q2 earnings results revealed on Oct. 24, which crushed both Wall Street’s top and bottom-line estimates, shares of Deckers took off more than 10% in the subsequent trading session. The company’s net sales jumped 20.1% year over year to $1.3 billion, while its EPS of $1.59 also registered a remarkable 39.5% annual growth.
This impressive Q2 success was primarily powered by robust demand for standout offerings from HOKA and UGG. HOKA’s net sales skyrocketed 34.7% to $570.9 million, fueled by its explosive popularity. Meanwhile, UGG also shined, achieving a 13% increase to $689.9 million in net sales, solidifying its position as a timeless favorite.
For the current fiscal year, ending in March 2025, analysts expect DECK’s EPS to increase 12.8% year over year to $5.48. Moreover, the company’s earnings surprise history is highly impressive. It surpassed the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus view is a “Moderate Buy,” which is based on nine “Strong Buy,” two “Moderate Buy,” and nine “Hold” ratings. The mood on Wall Street, however, is slightly less bullish than three months ago, when 12 analysts advocated a “Strong Buy.”
Deckers’ current price levels are premium to TD Cowen’s raised target of $185 on Oct. 25. While the stock is also trading flat to its average analyst price target of $191.65, the Street-high price target of $232 suggests that DECK could rally as much as 21% from here.
