Group 1 - Amrita leads a boutique family office fund in Vancouver, focusing on sustainable, growth-driven investments that maximize shareholder equity [1] - The fund aims to meet growth-oriented goals while democratizing financial literacy and simplifying complex macroeconomic concepts [1] - Amrita has a background in high-growth supply-chain start-ups and has experience working with venture capital firms, enhancing user acquisition during the pandemic [1] Group 2 - Amrita co-founded an award-winning newsletter, The Pragmatic Optimist, which emphasizes portfolio strategy, valuation, and macroeconomics [1] - The newsletter has been recognized as the Top Newsletter in Finance on popular platforms, indicating its influence and reach [1] - Amrita plans to extend her ideas and insights to Seeking Alpha, further broadening her audience [1]

Core Insights - Deckers Outdoor Corporation (DECK) reported a strong start to fiscal 2026 with a 17% year-over-year revenue increase, driven by record sales from HOKA and UGG [1][10] - However, profitability faced challenges as gross margin declined by 110 basis points to 55.8% due to increased wholesale growth, promotions, and freight costs [2][10] - Management anticipates that the operating margin for fiscal 2026 will be below the previous year's record of 23.6% due to rising tariffs and elevated costs [3][10] Revenue Performance - Fiscal first-quarter revenues increased by 17%, with HOKA achieving $653.1 million (up 19.8%) and UGG reaching $265.1 million (up 18.9%) [1][10] - The strong performance of core brands in both domestic and international markets highlights their continued strength [1] Profitability Analysis - Gross margin decreased to 55.8%, impacted by wholesale growth outpacing direct-to-consumer sales, increased promotions, and rising freight costs [2][10] - Operating margin contracted despite improved SG&A leverage, which increased by 230 basis points due to disciplined expense management and one-time currency gains [2] Future Outlook - For the fiscal second quarter, gross margin is projected to be between 53.5% and 54%, lower than the previous year [4] - Management indicated that tariff increases on products sourced from Vietnam could add approximately $185 million in costs this year, which will only be partially offset by pricing actions and operational adjustments [4] Strategic Initiatives - Deckers is implementing proactive measures such as price increases, tighter expense controls, and continued investment in brand strength to navigate short-term margin pressures [5] - The company’s strong brand equity and international growth are expected to provide a foundation for long-term resilience [5] Competitive Landscape - In comparison, Steven Madden reported a significant decline in adjusted operating income, while Urban Outfitters saw a substantial increase in operating income and margin [6][7][8] Valuation Metrics - Deckers shares have declined by 49.3% year-to-date, contrasting with the industry’s decline of 13% [9] - The company trades at a forward price-to-earnings ratio of 15.88X, below the industry average of 17.54X, and holds a Value Score of A [11] Earnings Estimates - The Zacks Consensus Estimate for DECK's fiscal 2026 earnings suggests a slight year-over-year decline of 0.6%, while fiscal 2027 estimates indicate an 8.3% increase [12]

Core Insights - Deckers Outdoor Corporation (DECK) is currently trading at a price-to-sales (P/S) ratio of 2.67, which is above the Zacks Retail-Apparel and Shoes industry average of 1.64 [1][4] - The company's stock has experienced a significant decline of 22.3% over the past three months, underperforming the industry drop of 2.1% [4][5] - DECK's gross margin fell by 110 basis points year over year to 55.8% in Q1 of fiscal 2026, with expectations of further contraction [14] Valuation and Performance - DECK's P/S ratio is higher than peers such as Boot Barn Holdings (2.22), Under Armour (0.43), and Crocs (0.99) [4] - The stock closed at $100.47, which is 55.1% below its 52-week high of $223.98 [10] - The company has trailed the Retail-Wholesale sector's rally of 3.5% and the S&P 500's growth of 9.3% during the same period [5] Operational Challenges - DECK faces margin pressures due to a shift towards lower-margin wholesale sales, elevated tariff costs, and softer U.S. direct-to-consumer trends for HOKA [5][13] - The anticipated $185 million in unmitigated tariff costs is a primary concern, particularly with potential increases in Vietnam import duties [13] - Elevated inventory levels reached $849 million, up 13% year over year, raising concerns over potential markdowns [16] Growth Potential - Despite challenges, DECK's brands HOKA and UGG exceeded growth targets in Q1, with HOKA growing 19.8% to $653.1 million and UGG growing 18.9% to $265.1 million [19] - International revenues surged by 49.7% year over year in Q1, with strong gains in Europe, APAC, and China [20] - The company is focusing on innovation and brand storytelling, with new product launches and optimized distribution strategies [21] Strategic Initiatives - DECK's wholesale net sales rose 26.7% to $652.4 million in Q1, driven by HOKA's 30% increase in global wholesale revenues [22] - The company expects a 14% increase in wholesale revenues in fiscal 2026 [23] - Management is implementing strategies to address operational headwinds, including loyalty program improvements and store expansion [15]

Core Insights - Deckers Outdoor Corporation's first-quarter fiscal 2026 performance was driven by strong demand for its flagship brands, HOKA and UGG, with HOKA's revenues increasing by 19.8% year over year to $653.1 million and UGG's revenues growing by 18.9% to $265.1 million [1][9] Brand Performance - HOKA maintained strong momentum with successful product launches, including the Arahi 8, and is expected to continue its growth trajectory with upcoming models such as Mafate 5 and Mach 3 [2] - UGG expanded its product offerings beyond cold-weather items, introducing versatile styles like the PeakMod clog and Lowmel sneaker, aligning with casual fashion trends [3] International Growth - Deckers reported a 49.7% year-over-year increase in international revenues in the first quarter, with both HOKA and UGG contributing significantly [4] Future Projections - For the second quarter of fiscal 2026, Deckers anticipates net sales between $1.38 billion and $1.42 billion, with HOKA expected to grow by 10% and UGG projected to increase in the mid-single digits [4][9] Competitive Landscape - Wolverine World Wide and Urban Outfitters are key competitors in the footwear market, with Wolverine's brands showing strong growth and Urban Outfitters' portfolio delivering positive performance [5][6][7] Valuation Metrics - Deckers shares have declined by 49.9% year to date, compared to a 12.6% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 15.77X, below the industry average of 17.64X, indicating a favorable valuation [11] Earnings Estimates - The Zacks Consensus Estimate for Deckers' fiscal 2026 earnings suggests a year-over-year decline of 1.1%, while fiscal 2027 estimates indicate an 8.3% increase [12]

Group 1 - HOKA ONE ONE launched the HOKA MAFATE HOUSE experience space in Beijing, indicating a focus on developing a new popular product beyond the Bondi series [1] - Deckers Group reported HOKA's net sales of $653.1 million, a year-on-year increase of 19.8%, marking a record performance [1] - The outdoor sports market has seen a surge in interest in trail running, with various brands, including both specialized and non-specialized brands, entering the market [1] Group 2 - The Chinese trail running shoe market is currently dominated by overseas brands, with a typical price point around 1,000 yuan, leading to intense competition among major sports brands and emerging players [1] - Sales of trail running shoes on major e-commerce platforms in 2024 are expected to exceed 600 million yuan, representing a nearly 80% year-on-year increase [1] - The entry of brands like Nike and Arc'teryx into the trail running shoe market is intensifying competition, which was previously led by specialized brands [1]

Core Insights - Deckers Outdoor Corporation (DECK) reported a strong performance in its wholesale business for Q1 fiscal 2026, with wholesale net sales increasing 26.7% year over year to $652.4 million, primarily driven by the HOKA and UGG brands [1][10]. Wholesale Performance - HOKA's wholesale revenues rose 30%, supported by robust sell-in, expanded distribution, and strong reorders, particularly in EMEA and APAC regions [2][10]. - UGG's wholesale revenues also increased by 30% year over year, with notable gains in both domestic and international markets, especially in EMEA and China, due to early fulfillment of fall orders and inventory replenishment [3][10]. - Throughout Q1, sell-through outpaced sell-in across wholesale accounts, indicating effective inventory management and healthy consumer demand [4]. Market Dynamics - The wholesale channel is expected to grow faster than the direct-to-consumer (DTC) channel, driven by evolving consumer preferences for in-person retail experiences and strong partner engagement [5]. - Deckers' ability to align wholesale execution with market demand positions the business for continued momentum through the fiscal year [5]. Competitive Landscape - Key competitors in the wholesale channel include Steven Madden, Ltd. (SHOO) and Urban Outfitters Inc. (URBN) [6]. - Steven Madden's wholesale channel reported a decline of 6.4% year over year, impacted by order cancellations and shipment delays, with a gross margin decrease to 31% [7]. - Urban Outfitters' wholesale channel achieved a 24% revenue increase in Q1 fiscal 2026, driven by strong full-price sales and improved profitability [8]. Valuation and Estimates - Deckers trades at a forward price-to-earnings ratio of 16.05X, below the industry average of 17.43X, with a Value Score of A [12]. - The Zacks Consensus Estimate for DECK's fiscal 2026 earnings implies a year-over-year decline of 1.1%, while fiscal 2027 indicates an uptick of 8.3% [13].

Core Viewpoint - Deckers' stock performance has been weak, remaining only about 5% above its 52-week lows, indicating a bearish market sentiment unless a rebound occurs [1] - The consumer discretionary sector is experiencing general weakness, impacting Deckers and its competitors [1] Company Analysis: Deckers - Deckers is positioned for potential growth due to its strong HOKA brand and solid financial health, which may allow it to outperform competitors like Nike [4][5] - Despite a nearly 50% decline in stock price year-to-date, Deckers maintains a strong balance sheet, enabling aggressive share repurchases and operational flexibility [6] - Deckers' valuation metrics are attractive, with a trailing P/E of 17.2 and a forward P/E of 17.6, significantly lower than Nike [6] - The enterprise value-to-sales ratio of Deckers is just over 2.5, close to Nike's, despite better growth prospects, indicating relative undervaluation [7] - Seasonal demand for UGGs may provide a tailwind for Deckers, with potential for a 20-30% rally by December 2025 if consumer spending stabilizes [7] Company Analysis: Nike - Nike is facing significant challenges, including a 12% revenue decline in Q4 2025, attributed to inventory issues and weakening demand in key markets [8] - The company's stock has dropped nearly 60% from its 2021 highs, reflecting lost market share to competitors like HOKA and Lululemon [9] - Nike's innovation stagnation and flawed direct-to-consumer strategy have negatively impacted brand desirability among younger consumers [9] - The company is estimating over $1 billion in additional costs from tariffs, further straining its EBITDA margins, which are currently around 14% [10] Trade Strategy - A pairs trade strategy is proposed, taking a long position in Deckers and a short position in Nike to capitalize on diverging fundamentals within the athletic footwear sector [3][12] - This strategy aims to neutralize broader market risks while leveraging Deckers' superior growth rates and lower P/E multiple compared to Nike [13] - Even if Deckers' net income margins were halved, it would still trade at a similar multiple to Nike, highlighting its better growth potential [13]

Core Insights - Companies are increasingly engaging in share buybacks as a response to stock price fluctuations, either when shares are dropping or rising [1][2][3] Group 1: Share Buybacks in Response to Stock Price Drops - Deckers Outdoor has seen its stock drop nearly 50% in 2025 and responded with a record $266 million in buybacks in Q1 and $183 million in Q2 [2] - This strategy indicates management's belief that the market is overreacting to negative news [2] Group 2: Share Buybacks Amid Rising Stock Prices - Spotify, VeriSign, and Newmont are all experiencing stock price increases and have announced significant increases in their share buyback capacities [3] - Spotify's stock is up approximately 40% in 2025, significantly outperforming the S&P 500's less than 7% return, and has authorized an additional $1 billion for buybacks [4][5] - VeriSign has provided a total return of about 29% in 2025 and announced a $913 million increase in buyback authorization, totaling around $1.5 billion, which is roughly 6% of its market value [7][8] - Newmont has achieved a 70% return in 2025 and added $3 billion to its buyback capacity, bringing the total to $3.2 billion, around 4.6% of its market capitalization [10] Group 3: Market Sentiment and Future Expectations - The buyback increases from these companies signal management's confidence in continued stock price rallies [5][10] - Analysts predict gold prices may rise to $4,000 per ounce by mid-2026, supporting Newmont's rationale for increasing buyback capacity [10] - Overall, substantial buyback increases are seen as positive indicators for investors, especially when aligned with strong cash flow [11]

PART I - Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 FY2026 financial statements show total assets at **$3.84 billion**, net sales up **16.9%** to **$964.5 million**, and net income of **$139.2 million**, with operating cash flow impacted by inventory build-up [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$3.84 billion**, driven by a significant rise in inventories, while stockholders' equity slightly decreased to **$2.47 billion** due to repurchases Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,720,416 | $1,889,188 | | Inventories | $849,351 | $495,226 | | Total current assets | $3,074,828 | $2,860,475 | | Total assets | $3,839,271 | $3,570,252 | | **Liabilities & Equity** | | | | Trade accounts payable | $732,881 | $417,955 | | Total current liabilities | $1,046,996 | $769,941 | | Total stockholders' equity | $2,467,479 | $2,513,013 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For Q1 FY2026, net sales increased **16.9%** to **$964.5 million**, driving net income up to **$139.2 million** and diluted EPS to **$0.93**, despite a slight decrease in gross margin Income Statement Highlights (in thousands, except per share data) | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $964,538 | $825,347 | +16.9% | | Gross profit | $537,906 | $470,000 | +14.4% | | Income from operations | $165,287 | $132,807 | +24.5% | | Net income | $139,203 | $115,625 | +20.4% | | Diluted EPS | $0.93 | $0.75 | +24.0% | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to **$2.47 billion** as of June 30, 2025, primarily due to **$183.0 million** in common stock repurchases offsetting net income - For the three months ended June 30, 2025, the company repurchased **1,666 thousand shares** of common stock for a total cost of **$183.0 million**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to **$36.1 million** due to a **$354.1 million** increase in inventories, while cash and cash equivalents ended at **$1.72 billion** Cash Flow Summary (in thousands) | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,146 | $112,650 | | Net cash used in investing activities | ($23,929) | ($22,521) | | Net cash used in financing activities | ($183,228) | ($151,861) | | **Net change in cash and cash equivalents** | **($168,772)** | **($63,654)** | - The significant decrease in operating cash flow was primarily driven by a **$354.1 million** use of cash for inventories, compared to a **$279.0 million** use in the prior year period[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail reportable segments, revenue disaggregation, tax rate changes, and the stock repurchase program, highlighting the phasing out of the Koolaburra brand and strong wholesale channel growth - The company's three reportable operating segments are the **HOKA brand**, **UGG brand**, and **Other brands** (Teva, AHNU, Koolaburra)[32](index=32&type=chunk) - The company is phasing out standalone operations for the **Koolaburra brand**, with plans to wind down its wholesale presence by the end of calendar year 2025[33](index=33&type=chunk) Net Sales by Channel (in thousands) | Channel | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | Wholesale | $652,364 | $514,782 | +26.7% | | Direct-to-Consumer | $312,174 | $310,565 | +0.5% | Net Sales by Geography (in thousands) | Geography | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | Domestic | $501,258 | $515,856 | -2.8% | | International | $463,280 | $309,491 | +49.7% | Segment Performance (in thousands) | Segment | Net Sales (Q1 FY2026) | Segment Income from Operations (Q1 FY2026) | | :--- | :--- | :--- | | HOKA | $653,119 | $253,528 | | UGG | $265,092 | $53,983 | | Other Brands | $46,327 | $7,753 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong Q1 FY2026 net sales growth of **16.9%** to **$964.5 million**, driven by HOKA and UGG brands, with operating income up **24.5%** despite gross margin pressure and a planned inventory build-up impacting cash flow [Financial Highlights](index=21&type=section&id=Financial%20Highlights) Q1 FY2026 highlights include **16.9%** net sales growth to **$964.5 million**, driven by HOKA and UGG brands, with operating margin improving to **17.1%** and diluted EPS rising **24.0%** Q1 FY2026 Financial Highlights vs. Prior Year | Metric | Performance | | :--- | :--- | | Net Sales Growth | +16.9% | | HOKA Brand Sales Growth | +19.8% | | UGG Brand Sales Growth | +18.9% | | Wholesale Channel Sales Growth | +26.7% | | International Sales Growth | +49.7% | | Operating Margin | 17.1% (+110 bps) | | Diluted EPS | $0.93 (+24.0%) | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales increased **16.9%** driven by HOKA and UGG, while gross margin declined to **55.8%** due to channel mix, yet income from operations rose **24.5%** to **$165.3 million** - HOKA brand net sales increased by **$107.9 million (19.8%)**, primarily due to higher global wholesale sales from market share gains and earlier shipments related to a European 3PL transition[87](index=87&type=chunk)[89](index=89&type=chunk) - UGG brand net sales grew by **$42.1 million (18.9%)**, driven by increased demand for year-round products and timing of sell-in for fall franchises in the wholesale channel[87](index=87&type=chunk)[89](index=89&type=chunk) - Gross margin decreased by **110 basis points**, primarily due to unfavorable channel mix (higher wholesale growth), increased promotional activity, and higher freight costs[90](index=90&type=chunk) - SG&A expenses increased by approximately **$35.4 million**, driven by higher marketing expenses for HOKA and UGG (**$13.3 million**), increased payroll for talent investment (**$8.9 million**), and higher rent from retail expansion (**$5.1 million**)[91](index=91&type=chunk)[94](index=94&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$1.72 billion** in cash, despite operating cash flow decreasing to **$36.1 million** due to inventory build-up, and has **$2.44 billion** remaining for stock repurchases - The company's cash and cash equivalents balance was **$1.72 billion** at the end of the quarter[100](index=100&type=chunk) - The decrease in net cash from operating activities was mainly due to higher inventory purchases to support demand and the transition of the European 3PL, along with higher trade accounts receivable[109](index=109&type=chunk) - As of June 30, 2025, the aggregate remaining approved amount under the stock repurchase program is **$2.44 billion**[106](index=106&type=chunk) - Net cash used in financing activities increased to **$183.2 million** from **$151.9 million** in the prior year, primarily due to a higher dollar value of stock repurchases[111](index=111&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposures, including commodity pricing, foreign currency, and interest rates, compared to the 2025 Annual Report[114](index=114&type=chunk) - There were no material changes in the quantitative and qualitative disclosures about market risk from the company's 2025 Annual Report[114](index=114&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[116](index=116&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter[117](index=117&type=chunk) PART II - Other Information [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in routine legal proceedings to protect its intellectual property rights, with management expecting no material adverse effect on financial condition or operations - The company is engaged in routine legal actions as part of its global program to protect its intellectual property rights, including claims of trademark counterfeiting and infringement[120](index=120&type=chunk) - Management believes that the final outcome of current ordinary course legal matters will not have a material adverse effect on the company's financial condition or results of operations[121](index=121&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's 2025 Annual Report on Form 10-K[123](index=123&type=chunk) - During the three months ended June 30, 2025, there were no material changes to the risk factors previously disclosed in the 2025 Annual Report[123](index=123&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,665,902 shares** for **$183.0 million** during the quarter, with **$2.44 billion** remaining under the authorized stock repurchase program Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Shares Repurchased | Weighted Average Price per Share | Dollar Value of Shares Repurchased | | :--- | :--- | :--- | :--- | | April 2025 | 588,656 | $107.02 | $62,998 | | May 2025 | 532,150 | $118.38 | $62,998 | | June 2025 | 545,096 | $104.56 | $56,994 | | **Total** | **1,665,902** | **$109.84** | **$182,991** | - The Board approved a new **$2.25 billion** stock repurchase authorization on May 21, 2025[127](index=127&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section discloses director and officer trading plans, noting Anne Spangenberg's Rule 10b5-1 plan covering **16,686 shares** during the quarter - During the quarter, Anne Spangenberg (President, Fashion Lifestyle Group) had a Rule 10b5-1 trading arrangement covering **16,686 shares**[132](index=132&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including officer certifications and Interactive Data Files (XBRL) - The report includes certifications from the Principal Executive Officer and Principal Financial and Accounting Officer as required by the Sarbanes-Oxley Act[134](index=134&type=chunk)

Core Viewpoint - Deckers Outdoor has shown signs of recovery in fiscal Q1 2026, with significant revenue growth and improved earnings, despite challenges from tariffs and a decline in U.S. sales [1][3][6]. Financial Performance - Deckers reported a revenue growth of 17%, surpassing the analyst forecast of 9.2% [3] - Adjusted earnings per share (EPS) grew by 24%, reaching 93 cents, contrary to expectations of a 10% decline [3] - International revenue surged by 50%, driven by strong performance from HOKA and UGG brands, marking the fastest growth in six quarters [4] - U.S. sales, however, fell nearly 3% in a challenging consumer environment [4] Margins and Costs - Gross margin decreased by 110 basis points to 55.8%, while operating margin increased by 105 basis points to over 17.1% [5] - The company has not seen negative impacts from initial price increases implemented on July 1, indicating potential for maintaining demand despite higher prices [8] Market Conditions and Tariffs - The sentiment around Deckers has been affected by tariffs, with the U.S. tariffs on Vietnam currently at 20%, a significant reduction from previous proposals [6][7] - Management has expressed optimism that price increases have not adversely affected demand, which is a positive indicator for future performance [8] Sales Channels - Direct-to-consumer (DTC) sales showed minimal growth, while wholesale sales increased by 26.7%, suggesting a potential rebound in DTC sales in the future [9] Stock Valuation and Forecast - The current stock price is $112.43, with a 12-month price target of $137.50, indicating a potential upside of 22.30% [10][11] - The stock trades at a forward P/E multiple of 18x, which is approximately 26% below its three-year average of over 24x, suggesting undervaluation [10][11]