Deckers Rides on Product Innovation & DTC Strength: Here's How

Core Insights - Deckers Outdoor Corporation (DECK) is well-positioned for long-term success due to its growth initiatives and strong brand performance in the competitive footwear industry [1] - The company's shares have surged 69.5% over the past year, outperforming the Zacks Retail-Apparel and Shoes industry's growth of 35.8% [2] Brand Performance - Deckers' flagship brands, UGG and HOKA, are gaining market traction, with HOKA aiming to become a multi-billion-dollar brand and UGG being positioned as a global lifestyle icon [3] - In Q2 of fiscal 2025, HOKA sales grew by 34.7% and UGG sales increased by 13% [3] Direct-to-Consumer (DTC) Business - The DTC segment saw a 19.9% rise in net sales to $397.7 million, with comparable net sales growing by 17$913.7 million, a 20.2% increase year over year, driven by strong performances from HOKA and UGG [6][7] - HOKA's wholesale revenues rose by 33%, while UGG's grew by 14% [7] Financial Outlook - The company projects total revenue growth of 12% to $4.8 billion for fiscal 2025, with HOKA expected to achieve 24$5.15-$5.25 from$4.96-$5.11 [10] Analyst Estimates - Analysts have increased their EPS estimates for the current fiscal year by 2 cents, with a consensus estimate of$5.47 per share [11] - The consensus estimate for the next fiscal year's earnings has been raised to $6.20 per share, indicating year-over-year growth of 9.8% [12] Investment Appeal - Deckers is considered a strong investment choice due to its robust brand portfolio, innovative products, and global expansion strategies [14]