We believe that product innovation, cost containment, store
augmentation and strong focus on profitable markets have
facilitated Deckers to keep afloat in this soft economic
environment. This is well evident from the company's
better-than-expected second-quarter fiscal 2015 results thanks to
strong demand for UGG, Teva, Sanuk and HOKA brands. We believe
expanding direct-to-consumer operations, omnichannel strategies,
effective inventory management and optimum capital allocation
augurs well for Deckers to sustain its growth momentum. Management
now projects a 15% growth in total revenue and a 15.8% rise in
earnings per share for fiscal 2015. However, Deckers' forecast of
earnings per share of $4.46 for the third quarter came below
analysts' expectation that triggered a downward revision in the
Zacks Consensus Estimate. Consequently, we adopt a Neutral view on
the stock for the time being.
Founded in 1973 and headquartered in Goleta, Calif., Deckers
Outdoor Corporation (DECK) is a leading designer, producer, and
brand manager of innovative, niche footwear and accessories
developed for outdoor sports, and other lifestyle-related
activities. The company offers footwear that is distinctive and
appeals broadly to men, women and children. These includes casual
open and closed-toe outdoor footwear, as well as outdoor
performance footwear, including multi-sport shoes, light hiking
shoes, amphibious footwear, and rugged outdoor travel shoes and
sheepskin footwear, and sandals under various styles.
Its products are sold through specialty domestic retailers,
international distributors and directly to end-users through its
websites and catalogs. The company's products are sold under UGG,
Teva, and under Other brands. The UGG brand comprises authentic
luxury sheepskin boots and a full line of luxury and comfort
footwear and accessories Teva includes high performance sport shoes
and rugged outdoor footwear and Other brands includes TSUBO, a line
of high-end casual footwear Ahnu, a line of outdoor performance and
lifestyle footwear MOZO, a line of footwear, which is a combination
of running shoe technology with work shoe toughness, HOKA ONE ONE
On July 1, 2011, Deckers completed the buyout of the Sanuk, an
action sport footwear brand, with an initial payment of $120
million in cash.
Deckers has changed its fiscal year from Dec 31 to Mar 31. Also,
the company has transferred its listing from Nasdaq to NYSE and has
begun trading on NYSE from May 5, 2014 under the symbol DECK.
Deckers Outdoor Corporation (DECK): Read the Full
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