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Investopedia· 2025-08-12 14:00
Financial Performance - On Holding shares surged due to better-than-expected results [1] - The company boosted its guidance [1] Sales Performance - Booming direct-to-consumer (DTC) sales contributed to the positive results [1]
DECK Stock Down Nearly 50% in 6 Months: Time to Consider Selling?
ZACKS· 2025-06-13 15:10
Core Viewpoint - Deckers Outdoor Corporation (DECK) has experienced a significant decline in stock price, dropping 49% over the past six months, which is substantially worse than the broader retail and market indices [1][4][9] Group 1: Stock Performance - DECK shares have underperformed compared to the Zacks Retail-Apparel and Shoes industry, which fell by 15.7%, and the Retail-Wholesale sector's decline of 3.4% [1][4] - The stock closed at $107.70, nearly 51.9% below its 52-week high of $223.98 reached on January 30, 2025, and is trading below its 50 and 200-day moving averages [6][9] - Compared to peers, Boot Barn's shares increased by 9.6%, while Adidas and Nike saw declines of 7.3% and 18.7%, respectively [5] Group 2: Growth Challenges - The decline in DECK's stock price is attributed to slowing growth and increased competition in the footwear and accessories market, alongside weaker direct-to-consumer (DTC) sales in the U.S. for HOKA [4][9] - Management anticipates up to $150 million in additional costs due to new tariffs, which will impact gross margins that reached a record 57.9% in fiscal 2025 but are expected to decline in fiscal 2026 [15][20] - The company has opted not to provide formal revenue or earnings guidance for fiscal 2026 due to uncertainties in global trade policies and consumer sentiment [19] Group 3: Strategic Initiatives - Deckers is focusing on sustainable growth through global expansion, innovation, and a balanced channel strategy, with HOKA and UGG deriving 34% and 39% of revenues from international markets in fiscal 2025 [21] - The company is investing in innovation, with five HOKA franchises generating over $100 million annually, and is adapting to consumer preferences through digital-first strategies [22] Group 4: Valuation Concerns - DECK is currently trading at a forward 12-month price-to-sales (P/S) ratio of 2.96, significantly higher than the industry average of 1.74 and the sector average of 1.61, raising concerns about its elevated valuation amid current challenges [10][11]
Amer Sports: The New ONON and DECK of Consumer Discretionary?
MarketBeat· 2025-05-28 21:22
Core Viewpoint - Amer Sports has experienced a significant stock price increase of approximately 187% since its public offering in February 2024, positioning it as a leading name in the consumer discretionary sector [1][2] Financial Performance - The company reported a strong Q1 earnings performance, with sales growth exceeding 23%, surpassing analyst expectations of just under 17% [3] - Adjusted diluted earnings per share (EPS) more than doubled from $0.11 to $0.27, significantly exceeding forecasts [4] - Amer Sports raised its full-year EPS guidance midpoint by over 4% and increased its revenue growth guidance from 14% to 16%, both ahead of analyst expectations [4] Brand and Market Position - Amer Sports' success is largely attributed to its key brand, Arc'teryx, known for high-end outdoor clothing, particularly lightweight waterproof jackets priced between $400 and $900 [6] - The technical apparel segment, which includes Arc'teryx, saw the fastest revenue growth at 28%, contributing 45% to total revenue [7] - Sales in Greater China grew by 43%, accounting for around 25% of total revenue, while the U.S. market contributed 26% with a 12% growth rate [7][8] Direct-to-Consumer Strategy - The company's direct-to-consumer (DTC) sales grew by 39%, significantly outpacing the 12% growth in its wholesale channel, indicating a positive trend for higher margins [8] Segment Performance - The Outdoor Performance segment, which includes Salomon footwear and apparel, saw its growth rate nearly double to 25%, making up 34% of total revenue [9] - Salomon generated $1 billion in revenue in 2024, capturing less than 1% of the global $180 billion sneaker market, with plans for further product launches [10] Valuation and Analyst Ratings - Analysts have raised their price targets for Amer Sports, with an average target just under $41, indicating a potential upside of 6% from recent closing prices [11] - The stock's price-to-earnings ratio stands at nearly 49x, significantly above the industry average of 29x, reflecting its strong earnings and sales growth profile [12] Future Outlook - The company is viewed as having high growth potential, particularly in the footwear segment, but expectations for continued outperformance will need to be managed [13]
Deckers Builds Momentum Through Innovation & Customer-Focused Strategy
ZACKS· 2025-03-31 16:10
Core Insights - Deckers Outdoor Corporation (DECK) is experiencing strong growth driven by the success of its UGG and HOKA brands, international expansion, and a focus on direct-to-consumer (DTC) sales [1][2][12] - The DTC channel is a significant contributor to Deckers' performance, with net sales rising 17.9% to $1.01 billion in Q3 of fiscal 2025 [2] - The company is investing in e-commerce and loyalty initiatives, enhancing customer acquisition and retention [3] Brand Performance - Deckers maintains a balanced portfolio with UGG leading in premium lifestyle footwear and HOKA growing rapidly in high-performance footwear, with HOKA growing 23.7% and UGG 16.1% year-over-year in Q3 [4][5] - The company has achieved full-price sell-through rates, reflecting strong brand equity and disciplined inventory management [5] International Expansion - International markets are increasingly important, particularly for HOKA, which is expanding globally with effective wholesale strategies [6] - UGG is also targeting high-opportunity regions like China for sustained international growth [7] Product Innovation - Product innovation is central to Deckers' strategy, with HOKA launching new performance products and UGG expanding into new segments like sneakers and men's styles [8][9] Financial Position - As of December 31, 2024, Deckers reported $2.24 billion in cash and no debt, allowing for growth investments and shareholder returns [10] - The company repurchased approximately 275,000 shares for $44.7 million, with $640.7 million remaining in its share repurchase authorization [10][11] Growth Projections - Deckers forecasts a 15% year-over-year revenue increase to $4.9 billion for fiscal 2025, with HOKA expected to grow 24% and UGG 10% [12] - The gross margin is anticipated to improve to 57%, up from 55.6% last year, with EPS forecasted to rise to $5.75-$5.80 [13]