How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Deckers (DECK) ten years ago? It may not have been easy to hold on to DECK for all that time, but if you did, how much would your investment be worth today?
Deckers' Business In-Depth
With that in mind, let's take a look at Deckers' main business drivers.
Founded in 1973 and headquartered in Goleta, California, Deckers Outdoor Corporation 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 sells products primarily under five proprietary brands — UGG, HOKA, Teva, Sanuk and Other brands (mainly comprised of Koolaburra).
Its products are sold through specialty domestic retailers, international distributors and directly to end-users through its websites and catalogs. The company sells directly to global consumers through the Direct-to-Consumer (DTC) channel, which is comprised of e-commerce websites and retail stores. The brands are sold worldwide, including in the United States, Canada, Europe, Asia-Pacific and Latin America.
The UGG brand (52.2% of fiscal 2024 total revenues) has proven to be a highly resilient line of premium footwear, apparel and accessories with expanded product offerings. The company intends to continue diversifying the brand to drive year-round product sales through the expansion of women’s spring and summer footwear, men’s products and apparel, home goods and accessories.
The HOKA brand (42.1% of fiscal 2024 total revenues) is an authentic, premium line of year-round performance footwear, apparel and accessories.
The Teva brand’s product line (3.5% of fiscal 2024 total revenues) includes a range of performance, casual, footwear and trail lifestyle products.
The Sanuk brand (0.6% of fiscal 2024 total revenues) has manifested into a lifestyle brand with a presence in the relaxed casual shoe and sandal categories.
The company's Other brands (1.6% of fiscal 2024 total revenues) is a casual footwear fashion line using sheepskin and other plush materials.
Deckers has finalized an agreement to sell off the Sanuk brand, with the transaction anticipated to be completed by August 2024.
(Notes: Zacks identifies fiscal years by the month in which the fiscal year ends, while DECK identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by DECK, will refer to this same fiscal year as being the year before the same year, as identified by Zacks.)
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Deckers ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $10,256.50, or a 925.65% gain, as of September 3, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 182.10% and the price of gold went up 89.35% over the same time frame.
Analysts are forecasting more upside for DECK too.
Deckers has shown robust growth through its strategic focus on expanding its brand presence and strengthening direct-to-consumer channels. This approach, along with a commitment to innovation in product development and a keen focus on international market expansion, has positioned the company for continued success. Deckers' commitment to elevating renowned brands like UGG and HOKA into global lifestyle icons enhances brand equity and market reach. Looking ahead, Deckers maintained its fiscal 2025 sales guidance, while raising its earnings forecast due to first-quarter gross margin expansion. However, the company foresees potential gross margin pressure on the horizon, stemming from higher freight expenses and a shift toward a more normalized promotional environment. We expect the metric to contact 160 basis points in fiscal 2025.
The stock is up 12.79% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2024. The consensus estimate has moved up as well.7 Best Stocks for the Next 30 Days
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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 Nasdaq, Inc.
