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Deckers Stock Near 52-Week High: Should You Buy DECK Now or Wait?
DECKDeckers(DECK) ZACKS·2024-12-12 15:41

Core Insights - Deckers Outdoor Corporation (DECK) has recently reached a 52-week high, prompting a reassessment of its stock potential at elevated levels [1][2] - The stock has shown impressive year-to-date momentum, driven by strong demand for its brands HOKA and UGG, with shares advancing 84.3% year to date compared to the industry's rise of 35.5% [3][9] - The company is currently trading at a premium valuation, with a forward P/E ratio of 34.22, reflecting strong fundamentals and growth potential [18] Stock Performance - Deckers closed at 204.95,nearits52−weekhighof204.95, near its 52-week high of 207.29, with a slight pullback attributed to profit-taking [5] - Technical indicators show the stock trading above its 50-day and 200-day moving averages, indicating robust upward momentum and price stability [6] Brand Performance - HOKA has been a significant growth driver, with a 32% revenue increase in the first half of fiscal 2025, surpassing 2billionintrailing12−monthrevenuesforthefirsttime[10]−UGGalsocontributedtogrowth,witha132 billion in trailing 12-month revenues for the first time [10] - UGG also contributed to growth, with a 13% increase in the first half of fiscal 2025, supported by strategic initiatives to modernize its offerings [11] Revenue and Earnings Growth - Deckers reported a 20.1% year-over-year revenue surge, with a gross margin of 55.9%, up from 53.4% in the previous year, leading to a 39.5% increase in earnings per share to 1.59 [9] - Direct-to-consumer revenues increased by 22%, while wholesale revenues grew by 20%, showcasing strength across key markets [12] Future Outlook - Management projects a 12% increase in fiscal 2025 net sales to 4.8billion,withHOKAexpectedtogrowbyaround244.8 billion, with HOKA expected to grow by around 24% and UGG by mid-single digits [14][15] - Wall Street analysts have raised earnings estimates, with the Zacks Consensus Estimate for the current fiscal year increasing by 3.8% to 5.48 per share [16] Investment Considerations - Deckers' strong brand portfolio, financial strength, and strategic initiatives make it a compelling investment opportunity [20] - The company's robust growth and international expansion reflect a well-executed strategy that is expected to drive long-term value for investors [20]