Deckers Outdoor Corporation
) hit a new 52-week high of $88.77 on Jan 6, before closing at
$87.99. Shares of this Zacks Rank #2 (Buy) stock rose more than
twofold in the past one year.
Based on the current price, this department store retailer is
2.8% below the Zacks Consensus average analyst price target of
$90.56. The company currently trades at a forward P/E of 18.52x,
a discount of 3.5% to the peer group average of 19.19x.
Additionally, the company's long-term estimated EPS growth rate
The challenging macroeconomic environment compelled Deckers to
resort to various means of repositioning itself and keep afloat.
Such measures include focusing on new product introductions,
effective cost management and new store openings. We believe
expanding direct-to-consumer operations, omnichannel strategies,
effective inventory management and optimum capital allocation
augur well for Deckers to sustain its growth momentum.
This is well reflected through Deckers' better-than-expected
third-quarter 2013 bottom-line results. The company posted
quarterly earnings of 95 cents a share that surpassed the Zacks
Consensus Estimate of 72 cents. Total net sales rose 2.7% year
over year to $386.7 million and came almost in line with the
Zacks Consensus Estimate.
Management continues to project total revenue growth of 8% for
2013, while it envisions a 10% rise in earnings per share, up
from 8% predicted earlier.
The earnings surprise history of the company also sparks
optimism about its future upbeat performance. Deckers has
outperformed the Zacks Consensus Estimate in the last four
quarters by an average of 48.1%.
Deckers is also expanding its footprint by targeting
profitable markets. This is well evident from the company's
retail store sales that rose 34.5%. Management is eyeing
opportunities for store expansion in Asia, mainly Japan and
China, and seeks to enhance the company's presence in South
Korea, Taiwan, Mongolia, Singapore and Australia.
Apart from Deckers, other stocks such as
The Walt Disney Company
Foot Locker, Inc.
) achieved new 52-week highs of $76.84, $41.73 and $39.13,
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