Core Viewpoint - Deckers (DECK) is showing potential for investment due to its recent technical movements, particularly crossing above the 20-day moving average, indicating a short-term bullish trend [1][2]. Technical Analysis - DECK has reached a key level of support and has rallied 11.8% over the past four weeks, suggesting a positive momentum [4]. - The 20-day simple moving average is a significant indicator for short-term traders, as it smooths out price fluctuations and signals trend reversals [1][2]. Earnings Estimates - There have been five upward revisions in DECK's earnings estimates for the current fiscal year, with no downward revisions, indicating strong investor confidence in the company's performance [4]. - The consensus estimate for DECK has also increased, further supporting the bullish outlook for the stock [4][5].

Core Viewpoint - Deckers (DECK) is showing potential for investment due to its recent technical movements and positive earnings revisions [1][2][3] Technical Analysis - DECK has recently reached a key support level and has overtaken the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is a significant indicator for traders and analysts to assess support or resistance levels [1] Performance Metrics - DECK has experienced an 11.8% rally over the past four weeks, suggesting upward momentum [2] - The company currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook but potential for further gains [2] Earnings Estimates - There have been five upward revisions to DECK's earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [2] - The consensus earnings estimate for DECK has also increased, reinforcing the bullish outlook [2][3]

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Insights - In FY2026Q3 (October 1, 2025 - December 31, 2025), Deckers achieved revenue of $1.96 billion, a year-on-year increase of 7%, exceeding Bloomberg consensus expectations of $1.87 billion. Gross margin decreased by 0.5 percentage points to 59.8%, outperforming expectations due to product mix adjustments and reduced tariff impacts on full-price sales. Net profit increased by 5% to $481 million, while net profit margin decreased by 0.4 percentage points to 24.6% due to gross margin pressure [2][6]. Revenue Breakdown - Brand performance is strong with balanced channel performance. UGG continued its steady performance, while HOKA experienced strong global growth. For FY2026Q3, revenues for HOKA, UGG, and other brands were $629 million (+18.5%), $1.31 billion (+4.9%), and $23 million (-55.5%) respectively. Both HOKA and UGG achieved balanced growth in DTC and wholesale channels, with UGG's quarterly performance boosted by adjustments in wholesale product structure and continuous innovation [7]. - Channel performance was balanced, with DTC recovering well. DTC and wholesale channel revenues for FY2026Q3 were $1.09 billion (+8.1%) and $860 million (+6.0%) respectively. The recovery in the U.S. DTC business contributed to this growth, and it is expected that the DTC channel will continue to improve [7]. - Regionally, the U.S. market showed recovery while international markets remained the main growth driver. Revenues for the U.S. and other regions in FY2026Q3 were $1.20 billion (+2.7%) and $760 million (+15.0%) respectively, indicating a recovery in the U.S. market and continued growth in international markets [7]. Inventory Situation - In FY2026Q3, the company's inventory amount increased by 10% year-on-year to $630 million, with the growth partly influenced by tariffs. The company has strengthened inventory management of existing styles and utilized the DTC channel to control excess inventory, leading to a relatively healthy inventory structure [12]. Performance Guidance - The company raised its full-year guidance, expecting FY2026 revenue to be between $5.4 billion and $5.425 billion (previous guidance was $5.35 billion), representing a year-on-year increase of 8.3% to 8.8%. HOKA is expected to grow in the mid-teens year-on-year, while UGG is expected to grow in the low single digits. Gross margin is projected to be around 57%, operating profit margin around 22.5%, and EPS between $6.80 and $6.85. For FY2026Q4, HOKA revenue is expected to grow by 13% to 14%, while UGG revenue is expected to remain flat year-on-year [12].

Core Insights - HOKA has launched the Speedgoat 7, an evolution of its popular trail running shoe, designed for performance across various terrains [1] - The Speedgoat 7 features upgraded traction, cushioning, and a new integrated gaiter attachment, enhancing its versatility and performance [1] - HOKA's "Run Wilder" campaign promotes the Speedgoat 7, showcasing its performance through real-world tests in Iceland [1] - The company is also hosting the HOKA Speedgoat 7 Vert Challenge, encouraging runners to achieve 7,000 feet of vertical gain in 30 days [1] Product Features - The Speedgoat 7 includes a super-critical foamed EVA midsole for enhanced energy return and a Vibram® Megagrip outsole with Traction Lugs for improved grip [1] - Key features also include updated lug orientation, a lightweight RPET woven textile upper, and a heel pull tab with reflective details [1] - The shoe is available in various sizes and colorways, with a retail price of $165 [1] Company Background - HOKA is a division of Deckers Brands, known for its innovative performance footwear and apparel [1] - The brand emphasizes constant innovation and collaboration with elite athletes to enhance its product offerings [1] - Deckers Brands has a history of over 50 years in building niche footwear brands into market leaders [1]

Core Viewpoint - Deckers has demonstrated solid growth despite skepticism from Wall Street, with significant stock performance since its IPO in 1993, showing a 9,660% increase, which is more than double that of Nike during the same period [1] Financial Performance - Deckers reported third-quarter revenue growth of 7.1% to $1.96 billion, surpassing the consensus estimate of $1.87 billion [5] - Hoka sales increased by 18.5% to $628.9 million, while Ugg sales rose by 4.9% to $1.31 billion [5] - Operating income grew by 8.3% to $614.4 million, resulting in an operating margin of 31%, and earnings per share (EPS) increased by 11% to $3.33, exceeding expectations of $2.76 [6] Market Dynamics - Deckers faced challenges from tariffs and weak consumer discretionary spending in the U.S., leading to a 46% decline in stock value over the past year [3][4] - However, the company showed improvement in both wholesale and direct-to-consumer channels, with domestic sales recovering to 2.7% growth and international sales up by 15% [7] Future Guidance - Management raised its fiscal year revenue guidance to $5.4 billion-$5.425 billion, with Hoka expected to grow by a mid-teens percentage and Ugg by a mid-single-digit percentage [8] - Projected EPS for the fiscal year is now $6.80-$6.85, up from previous guidance of $6.30-$6.39 [8] Valuation and Sentiment - Deckers' stock is currently trading at a price-to-earnings ratio of 17, which is attractive compared to the S&P 500's P/E ratio of around 28 [11] - The company has consistently beaten earnings estimates over the last four quarters, with a cumulative surprise of 26% [10] Strategic Outlook - The strong Q3 results suggest a solid outlook for fiscal 2027, with potential acceleration in growth due to the removal of a $110 million tariff headwind and successful new product launches [12]

Core Insights - A rotation in the market is occurring as investors are moving away from large-cap tech stocks, such as Microsoft [1] Group 1 - The Q4 earnings season is characterized by volatility, highlighting a significant trend in investor behavior [1] - Investors are increasingly shunning large-cap technology stocks, indicating a shift in market sentiment [1]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld, taking you through to that closing bell with a global simulcast. There it is behind me, Carol Massar Tim Stenovec in the radio room.Welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube a day Carol Massar That, of course, has been consumed by the attention on Kevin Warsh, the nominee to succeed Jay Powell. But it kind of obscures some real volatility ...

Core Insights - Deckers Outdoor Corporation (DECK) reported strong third-quarter fiscal 2026 results, with both revenue and earnings exceeding estimates and showing year-over-year growth, leading to an increase in fiscal 2026 guidance [1][9] Financial Performance - DECK's quarterly earnings were $3.33 per share, surpassing the Zacks Consensus Estimate of $2.77 and up from $3.00 in the prior year [2] - Net sales increased by 7.1% year over year to $1.96 billion, exceeding the consensus estimate of $1.88 billion; on a constant-currency basis, net sales grew by 6.8% [2] - Gross profit rose by 6.2% year over year to $1.17 billion, with a gross margin of 59.8%, down from 60.3% in the previous year but above the estimate of 57.4% [3] - SG&A expenses increased by 4% year over year to $557 million, representing 28.5% of revenues, a decrease of 80 basis points from last year [4] - Operating income was $614.4 million, an increase of 8.3% from $567.3 million in the prior year, with an operating margin of 31.4%, up 40 basis points [4] Brand Performance - HOKA brand sales grew by 18.5% year over year to $628.9 million, exceeding projections, driven by strong performance in both direct-to-consumer and wholesale channels [5] - UGG brand net sales increased by 4.9% year over year to $1.31 billion, surpassing estimates, with growth supported by effective inventory management and consumer engagement [6] - Other Brands saw a significant decline in net sales, down 55.5% year over year to $23.2 million, attributed to the phase-out of Koolaburra's standalone operations [7] Channel and Geographic Insights - Wholesale net sales increased by 6% year over year to $864.6 million, while direct-to-consumer net sales rose by 8.1% to $1.09 billion [10] - Domestic net sales grew by 2.7% to $1.20 billion, while international net sales increased by 15% to $756.7 million [10] Future Outlook - For the fourth quarter of fiscal 2026, DECK anticipates mixed operating conditions, with HOKA expected to drive growth despite higher tariffs impacting gross margins [12][15] - HOKA revenues are projected to grow by 13-14% year over year, while UGG revenues are expected to remain flat compared to the prior year [13][14] - The company raised its full-year outlook for fiscal 2026, expecting net sales of $5.40-$5.425 billion, with HOKA anticipated to deliver mid-teens revenue growth and UGG expected to grow at a mid-single-digit rate [17] - The gross margin for fiscal 2026 is projected at 57%, with SG&A expenses expected to represent 34.5% of revenues [18] - Earnings per share are expected to be in the range of $6.80-$6.85, indicating a 7-8% increase from the previous year [19]

Core Viewpoint - Deckers Outdoor Corp (DECK) has demonstrated strong financial performance, particularly through its HOKA and UGG brands, leading to increased revenue expectations and a solid market presence [2][3][4]. Financial Performance - DECK reported a 7% increase in revenue for the third quarter, reaching $1.96 billion compared to the previous year [2][6]. - HOKA's revenue surged by 18% to $629 million, with balanced growth across direct-to-consumer and wholesale channels [2]. - The UGG brand achieved a record revenue of $1.3 billion, marking a 5% increase from the previous year [3]. Gross Margin and Pricing Strategy - DECK maintained high levels of full-price selling, contributing to a gross margin of 59.8%, which exceeded expectations [3]. - Piper Sandler set a price target of $95 for DECK, indicating a slight overvaluation based on the current stock price of $99.90 [6]. Revenue Expectations - The company raised its full-year revenue expectations to a range of $5.4 billion to $5.425 billion, reflecting confidence in continued growth [4][6]. Market Presence - DECK's stock has fluctuated between a low of $97 and a high of $100.26, with a recent price change of $2.28, a 2.34% increase [4]. - The company's market capitalization is approximately $14.82 billion, with a trading volume of 5,749,749 shares, highlighting strong market presence and investor interest [5].

Core Viewpoint - The article emphasizes the investment philosophy focused on identifying mispriced securities through understanding the financial drivers of companies, often revealed by a DCF model valuation [1]. Group 1: Investment Philosophy - The investment approach is centered on small cap companies across US, Canadian, and European markets [1]. - The methodology allows for flexibility beyond traditional investment categories such as value, dividend, or growth investing, considering all prospects of a stock to assess risk-to-reward [1].