Deckers(US:DECK) The Motley Foolยท2024-10-04 07:02Core Viewpoint - Deckers Outdoor has shown significant growth and potential for further gains, highlighted by its recent addition to the S&P 500 and a successful stock split, alongside strong financial performance and market positioning [2][3][12] Company Overview - Deckers Outdoor began in the 1970s surf culture, creating popular sandals and has since expanded into a multinational company with brands like Hoka, Ugg, Teva, Ahnu, and Koolabura [4] - The company has focused on niche offerings with broad appeal, leading to international success [4] Financial Performance - For fiscal 2025 Q1, Deckers reported revenue of $825 million, a 22% increase year-over-year, and diluted EPS of $4.52, up 87% [6] - The company raised its full-year EPS forecast to $30.20, indicating strong expected performance [6] Market Position - Deckers has been gaining market share from larger competitors while maintaining full retail prices for its popular brands [7] - Sales for the Ugg brand increased by 16% to $2.2 billion, and Hoka brand sales surged by 28% to $1.8 billion [8] Share Buyback Program - Since 2012, Deckers has reduced its share count by nearly 34% through stock buybacks, enhancing shareholder value [9] - In Q1, the company repurchased $152 million worth of stock and has $790 million remaining in its buyback authorization [9] Analyst Sentiment - A majority of analysts covering Deckers are optimistic, with 16 out of 22 rating it a buy or strong buy, and an average price target suggesting a 15% upside [9][10] - UBS analyst Jay Sole has a buy rating with a price target of $225, indicating a potential 45% gain [10] Valuation - Deckers is currently priced at approximately 30 times earnings, comparable to the S&P 500, despite outperforming the index [11] - Analysts project EPS of $6.05 for the next fiscal year, suggesting the stock is trading at less than 26 times next year's earnings, indicating it is attractively priced [11]