Deckers Outdoor Corporation (DECK): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
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.

Overview:

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 brand.

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.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: DECK

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