Deckers Outdoor Corporation (DECK) witnessed an 8.6% jump in its share price during the after-market trading session on May 23. This rally was in response to the company's outstanding fourth-quarter fiscal 2024 performance and optimistic fiscal 2025 sales forecast. The strong quarterly results were underpinned by the exceptional performance of the HOKA ONE ONE and UGG brands. Deckers has shown robust growth through its strategic focus on expanding its brand presence and strengthening direct-to-consumer chan ...

Financial Data and Key Metrics Changes - Deckers reported a record revenue of $4.288 billion for fiscal year 2024, an 18% increase compared to the previous year, driven by strong performance from HOKA and UGG brands [42][69] - Gross margin improved to 55.6%, up 530 basis points year-over-year, primarily due to higher full-price selling and favorable product mix [55][43] - Diluted earnings per share reached $29.16, representing a 51% increase from $19.37 in the prior year [56][42] Business Line Data and Key Metrics Changes - HOKA revenue for fiscal year 2024 was $1.8 billion, a 28% increase year-over-year, with DTC sales growing by 40% [31][42] - UGG generated $2.2 billion in revenue, reflecting a 16% increase, with DTC revenue up 22% [16][42] - DTC accounted for 43% of total company revenue, up from 40% in the prior fiscal year, with significant growth in both HOKA and UGG [7][42] Market Data and Key Metrics Changes - International markets contributed significantly to growth, with DTC revenue from international regions increasing by 37% [7][20] - UGG's international revenue growth rate was more than double that of the US market, indicating strong demand in global markets [20][19] - HOKA's brand awareness in the US rose to approximately 40%, while international regions averaged just over 20% [31][39] Company Strategy and Development Direction - The company aims to build HOKA into a multi-billion dollar global player in the performance athletic space while growing UGG with premium products [54][60] - Focus on maintaining a disciplined marketplace management strategy to preserve brand positioning and drive DTC growth [9][10] - Continued investment in product innovation and marketing to enhance consumer engagement and brand awareness [32][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering fiscal year 2025 with strong momentum, expecting top-line revenue growth of approximately 10% [44][46] - Anticipation of a more normalized promotional environment with lower full-price selling compared to fiscal year 2024 [45][46] - Management highlighted the importance of maintaining high levels of brand heat and consumer engagement through innovative product offerings [39][54] Other Important Information - SG&A expenses for the fourth quarter were $395 million, representing 41.2% of revenue, an increase from the previous year due to higher marketing spend [41][71] - The company ended fiscal year 2024 with $1.5 billion in cash and equivalents, and inventory was down 11% year-over-year [56][42] - The company repurchased approximately $104 million worth of shares in the fourth quarter, with a total of over $415 million for the fiscal year [56][42] Q&A Session Summary Question: What is the outlook for HOKA's wholesale growth? - Management noted healthy demand from wholesale partners, with a focus on driving more revenue to DTC while maintaining tight wholesale channels [62] Question: How is UGG growing in terms of classic versus new styles? - Management indicated that classic styles maintain steady sales, while reimagined classics are resonating well with younger consumers, driving excitement and growth [82] Question: What are the expectations for international growth? - Management highlighted significant opportunities in international markets, particularly in Europe and Asia, with a focus on increasing brand awareness and distribution [78][74]

This quarterly report represents an earnings surprise of 75.53%. A quarter ago, it was expected that this maker of Ugg footwear would post earnings of $11.40 per share when it actually produced earnings of $15.11, delivering a surprise of 32.54%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Deckers, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $959.76 million for the quarter ended March 2024, surpassing the Zacks Consensus E ...

DECKERS BRANDS REPORTS FOURTH QUARTER AND FULL FISCAL YEAR 2024 FINANCIAL RESULTS Goleta, California (May 23, 2024) -- Deckers Brands (NYSE: DECK), a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, today announced financial results for the fourth fiscal quarter and full fiscal year ended March 31, 2024. The Company also provided its financial outlook for the full fiscal year ending March 31, 2025. Exhibit 99.1 "Deckers achieved record results during fis ...

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The first-quarter 2024 earnings season is approaching its end. So far, results have come in better than expected. As of May 17, 467 companies on the S&P 500 Index reported their financial numbers. Total earnings for these 467 index members increased 4.6% from the same period last year on 4% higher revenues, with 77.7% beating EPS estimates and 60.2% beating revenue estimates. At present, total earnings of the S&P 500 Index in first-quarter 2024 are expected to be up 6.3% on 4.3% higher revenues. This follow ...

Investment Rating and Core Views - The report initiates coverage with a "Buy" rating, forecasting FY2024-2026 revenue of $4.15B/$4.69B/$5.19B, representing YoY growth of +14.4%/+13.0%/+10.7%, and net income of $691M/$777M/$865M, with YoY growth of +33.7%/+12.4%/+11.3% [2] - The long-term outlook is positive due to the company's brand matrix growth and future development prospects [2] Financial Projections and Valuation - The company's FY2024-2026 PE ratios are projected at 33X/30X/27X based on the closing price of $888.56 on May 17, 2024 [2] - FY2024-2026 gross margins are expected to be 54.4%/54.5%/54.8%, with UGG and HOKA revenue growth rates projected at 14.4%/6.8%/4.5% and 20.8%/22.2%/18.7%, respectively [16] Brand Performance and Strategy - UGG leverages fashion collaborations to create popular items, successfully attracting trend-conscious consumers and solidifying its leadership in the global fashion market [5] - HOKA has gained recognition through endorsements from marathon champions and elite teams, becoming the most used brand at the 2022 UTMB event [6] - UGG's international direct stores exhibit high ATV and conversion rates, while HOKA is in the early stages of international expansion with localized products [13] Product and Market Analysis - UGG's product line covers six major scenarios, including rain, snow, extreme cold, indoor, casual, and summer, alleviating product homogeneity and boosting brand popularity [187] - HOKA's performance running shoes offer superior cushioning and support, with a focus on lightweight, thick-soled designs that provide excellent shock absorption and stability [47][169] Operational Efficiency and Channel Strategy - The company has improved operational efficiency through DTC expansion, increasing the DTC revenue share from 34% in FY2015 to 43.3% in FY2024 Q1-Q3 [12] - Future plans aim for a 50% DTC and wholesale revenue split, with continued emphasis on DTC channel growth [12] Industry and Market Trends - The global footwear market has shown recovery since 2021, with retail sales reaching $384.05B in 2023, and a projected CAGR of over 5% from 2023 to 2028 [119][120] - The outdoor sports market is expanding, driven by emerging platforms and increased participation among younger demographics, with a CAGR of 11.9% from 2020-2022 and 4.7% from 2023-2025E [145] Consumer Insights - UGG's primary consumer base consists of young and middle-aged women, while HOKA's audience is more evenly distributed across genders, with a focus on middle-aged consumers [112][115] - HOKA's consumer base is growing, with 59% of owners under 35 and a higher likelihood of purchase among women and middle-aged consumers [177] Marketing and Branding - UGG has successfully reversed its brand image through celebrity endorsements and collaborations, becoming a staple in streetwear and fashion [166][189] - HOKA focuses on community marketing, organizing running events and providing personalized services to enhance customer loyalty and brand experience [196][222]

Wall Street analysts forecast that Deckers (DECK) will report quarterly earnings of $2.75 per share in its upcoming release, pointing to a year-over-year decline of 20.5%. It is anticipated that revenues will amount to $876.05 million, exhibiting an increase of 10.7% compared to the year-ago quarter. Bearing this in mind, let's now explore the average estimates of specific Deckers metrics that are commonly monitored and projected by Wall Street analysts. According to the collective judgment of analysts, 'Ne ...

Growth stocks offer the potential to outperform the stock market. Picking individual growth stocks takes more effort than buying an ETF, but the returns can make it worth it. One common problem with growth investments is that they attract many investors and end up with high valuations. High P/E ratios and PEG ratios don't leave much room for error. Some stocks continue to soar despite high valuations thanks to strong financial growth. However, combining financial growth with reasonable valuations is possibl ...

Cramer pointed out that it's not been easy lately for some of the big names in the athletic apparel space. Shares of Nike and Lululemon have seen steep declines since the beginning of 2024. Cramer attributed these losses in part to fears of cash-strapped consumers, but also to stiff competition from smaller, fast-growing sneaker and athleisure brands. But Deckers and On are two promising growth stocks, Cramer said. On reported a solid quarter Tuesday that sent shares climbing, and the stock has been able to ...