Core Viewpoint - On Holding is adopting a full-price strategy for the holiday season, opting out of Black Friday discounts to reinforce its premium brand positioning [1][2]. Company Performance - On Holding reported Q3 net sales of 794.4 million Swiss francs ($994.3 million) and a net income of 118.9 million francs, significantly up from 30.5 million francs in the same quarter last year [4]. - The company raised its full-year sales guidance from 2.91 billion francs to 2.98 billion francs, indicating strong performance and optimism [4]. Competitive Landscape - Competitors like Adidas and Nike are engaging in early Black Friday promotions, contrasting with On's strategy [2]. - Nike anticipates a decrease in fiscal Q2 revenue and a drop in gross margins, with Q1 net income down 31% year over year [5]. - HOKA, owned by Deckers, is also promoting discounted holiday gifts, reflecting a different approach compared to On [3]. Market Trends - Deckers' brands, HOKA and UGG, saw sales increases of 11.1% and 10.1% year over year, while other brands under Deckers experienced a 26.5% decrease [7]. - Tariffs are influencing sales guidance adjustments for Nike and Deckers, as rising prices are affecting consumer purchasing behavior [8].

Group 1 - Cold weather presents investment opportunities in companies whose revenues increase during winter months [1] - Retail stocks are currently out of favor, but the National Retail Federation projects a 3.7% to 4.2% increase in retail sales for November and December, surpassing $1 trillion [2] - Consumers plan to spend an average of $890 on gifts and seasonal items, indicating potential for increased retail performance despite current earnings season challenges [3] Group 2 - Deckers Outdoor Corp. (NYSE: DECK) has seen a 58.5% decline in stock price in 2025, facing significant tariff headwinds estimated at $150 million for fiscal year 2026 [4] - Despite year-over-year revenue and earnings growth, concerns exist regarding the sustainability of this growth due to potential consumer spending limits [5] - Analysts project a consensus price target of $118.11 for DECK stock, indicating a potential 40% gain, supported by expected earnings growth of over 12% [5][6] Group 3 - Other retail stocks like Canada Goose (NASDAQ: GOOS), along with Deckers, could benefit from winter demand, with analysts forecasting double-digit earnings growth for cold-weather apparel leaders [6] - Canada Goose has experienced a stock price increase of over 32% in 2025, recovering from a post-earnings sell-off [8]

Core Insights - Wolverine World Wide, Inc. (WWW) demonstrated strong performance in Q3 2025, achieving 6.8% revenue growth and record margins, primarily driven by its flagship brands, Saucony and Merrell [1][10] Brand Performance - Saucony reported a significant 27% year-over-year revenue increase, achieving record profitability by effectively blending performance running with lifestyle appeal [2][10] - Merrell experienced a 5.1% quarterly revenue growth, focusing on performance-oriented products while redefining itself as a modern outdoor lifestyle brand [4][10] Product and Market Strategy - Saucony's signature models, including the Endorphin series and ProGrid Omni 9, are enhancing its presence in both athletic and fashion markets, supported by collaborations that resonate with younger consumers [3][10] - Merrell's product offerings, such as the Moab 3 and Agility Peak 5, are attracting diverse audiences by combining trail performance with everyday versatility [4][10] Global Expansion - Both brands are expanding their global reach through a city-focused strategy targeting key markets like Tokyo, London, and Paris, which integrates digital engagement with localized storytelling [5][10] Financial Projections - For Q4 2025, Wolverine anticipates revenues between $498 million and $513 million, indicating a 2.2% year-over-year growth at the midpoint [6][10] - Full-year revenue projections for 2025 are between $1.86 billion and $1.87 billion, suggesting a year-over-year growth of 6-6.8% [6][10] Competitive Landscape - Wolverine competes with key players like Deckers Outdoor Corporation, Tapestry, Inc., and Urban Outfitters Inc., all of which are also focusing on brand innovation and market expansion [8][10]

Key Takeaways Boot Barn raised FY26 sales forecast to $2.20-$2.24B, up 15-17% year over year.E-commerce same-store sales jumped 14.4%, aided by brand sites and AI-driven enhancements.BOOT plans 70 new stores this year, expecting $3.2M in annual sales per new location.Boot Barn Holdings Inc. (BOOT) has upped its sales forecast for fiscal 2026. It now expects total sales between $2,197 million and $2,235 million, which suggests year-over-year growth of 15% to 17%. The company’s updated view reflects both ongo ...

Core Insights - Deckers Outdoor (DECK) stock has seen a significant decline of 22.1% in less than a month, dropping from $103.80 to $80.89, but there is potential for recovery based on historical patterns and current assessments of the stock's attractiveness [2][3]. Financial Performance - In the most recent quarter, Deckers reported a revenue increase of approximately 9% year-over-year, with earnings per share (EPS) exceeding expectations [3]. - Despite the positive quarterly results, management provided a cautious outlook for full-year sales due to factors such as consumer pull-back, tariff and cost pressures, and a decline in direct-to-consumer sales for major brands like UGG [3]. Growth Potential - Future stock recovery could be driven by stronger growth in the HOKA and UGG brands, improved margins through cost management, and clearer guidance on consumer demand [4]. - A refreshed marketing strategy, successful new product launches, and expansion into faster-growing international markets could also act as catalysts for stock price recovery [4]. Historical Performance Metrics - Historically, DECK stock has provided a median return of 58% over one year and a peak return of 74% after experiencing sharp declines of over 30% within 30 days [5][10]. - The stock has encountered four instances since January 1, 2010, where it experienced a decline of 30% within 30 days [8]. Financial Quality Assessment - Deckers Outdoor meets fundamental quality criteria, indicating a strong financial position characterized by revenue growth, profitability, cash flow, and balance sheet strength [9].

Investment Rating - The industry investment rating is "Positive" and maintained [5] Core Insights - Deckers reported revenue of $1.43 billion for FY2026Q2, a year-on-year increase of 9%, aligning with market expectations [3][4] - Gross margin improved by 0.3 percentage points to 56.2%, driven by product price increases, improved product mix, favorable currency fluctuations, and cost-sharing on tariffs [3][4] - Net profit margin increased by 0.3 percentage points to 18.7%, supported by a decrease in the effective tax rate [3][4] Revenue Breakdown - By brand, UGG and HOKA revenues grew by 10.1% and 11.1% respectively, while other brands saw a decline of 26.5% [4] - Direct-to-Consumer (DTC) and wholesale channel revenues were $3.9 billion and $10.4 billion respectively, with DTC showing a slight decline of 0.8% [4] - Revenue from the U.S. decreased by 1.7%, while international markets saw a growth of 29.3% [4] Inventory and Guidance - Inventory increased by 7% year-on-year to $840 million, attributed to proactive stockpiling before tariff hikes [4] - The company expects FY2026 revenue to reach $5.35 billion, a 7% increase year-on-year, with a gross margin of approximately 56% [4]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their potential to outperform the market, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] Momentum Score - The Momentum Score capitalizes on price trends and earnings outlook changes to identify optimal buying opportunities [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][9] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing returns [9][10] Company Spotlight: Deckers Outdoor Corporation - Deckers is a prominent designer and producer of niche footwear and accessories, known for brands like UGG and HOKA [11] - Currently, Deckers holds a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of B due to a forward P/E ratio of 13.7 [12] - Recent earnings estimates for fiscal 2026 have been revised upward, with the Zacks Consensus Estimate increasing by $0.06 to $6.40 per share [12] - Deckers has an average earnings surprise of +35.7%, making it a noteworthy consideration for investors [12][13]

Core Insights - Deckers Outdoor Corporation (NYSE: DECK) reported disappointing fiscal second-quarter earnings, guiding for $5.35 billion in annual sales, below analysts' expectations of $5.45 billion [1][2] - The company's brands, including UGG and HOKA, are facing challenges, with UGG not performing well and HOKA experiencing increased competition [2] - There is a broader macroeconomic uncertainty affecting the enterprise level, contributing to the lukewarm guidance [2] Company Performance - Deckers Outdoor Corporation's annual sales guidance of $5.35 billion is lower than the market expectation of $5.45 billion, indicating potential struggles in meeting growth targets [1] - The performance of key brands such as UGG and HOKA is under scrutiny, with both brands not achieving expected sales figures [2] Market Competition - The competitive landscape is intensifying, with brands like Nike entering the market against HOKA, and New Balance regaining some market presence [2] - Elevated competition and macroeconomic factors are cited as reasons for the company's challenges, suggesting a need for strategic adjustments [2]

Core Insights - Deckers Brands reported a 9.1% year-over-year increase in net sales for Q2 of fiscal year 2026, reaching $1.431 billion, with a net profit of $268 million and diluted earnings per share (EPS) of $1.82 [1] Group 1: Brand Performance - HOKA brand achieved a net sales increase of 11.1% year-over-year, totaling $634.1 million, continuing its double-digit growth momentum [1] - UGG brand saw a net sales increase of 10.1% year-over-year, reaching $759.6 million [1] Group 2: Future Outlook - For the full fiscal year 2026, Deckers anticipates net sales to be approximately $5.35 billion, with HOKA expected to grow in the low double digits and UGG projected to grow in the low to mid-single digits [1] - Diluted EPS is expected to be in the range of $6.30 to $6.39 [1] Group 3: Management Commentary - The CEO of Deckers Brands, Stefano Caroti, emphasized the company's commitment to long-term strategy through continuous product innovation, excellent operational execution, and stable financial performance [1]

Core Insights - Deckers Brands reported its Q2 financial results for FY2026, showing overall stable performance but a significant slowdown in HOKA's growth, leading to stock price volatility [1][3] Financial Performance - For Q2 FY2026, Deckers Brands achieved net sales of $1.431 billion, a year-over-year increase of 9.1%, and a net profit of $268 million, up 10.74% [2] - Gross margin improved by 2.8 percentage points to 56.18%, indicating a steady rise in overall profitability [2] - UGG remains a key revenue driver with net sales of $759 million, a 10.1% increase, while HOKA's sales reached $634 million, growing by 11% [2] - The "Other" brands, including Teva and Ahnu, faced challenges with a 26.5% decline in net sales to $37.2 million [2] HOKA Brand Performance - HOKA's growth rate has significantly slowed, with Q2 FY2026 growth at 11%, down from 19.8% in Q1 FY2026 and much lower than historical growth rates of 34.7% in Q2 FY2025 and 58.3% in Q2 FY2023 [2] - The current growth rate is the lowest for HOKA in nearly five years [2] Full-Year Outlook - Deckers Brands projects total net sales for FY2026 to be approximately $5.35 billion, with HOKA's sales expected to grow in the low double digits, between 10% and 15% [3] - The downward adjustment in HOKA's growth expectations is attributed to tariff impacts and anticipated cautious consumer behavior due to macroeconomic pressures [3] Market Performance - The U.S. market saw a 1.7% decline in net sales to $839 million, while international sales surged by 29.3% to $591 million, becoming a significant growth driver [4] - The Chinese market has been a key contributor to HOKA's growth, with strong demand driven by high-end positioning and product innovation [4] Strategic Initiatives - Deckers Brands has outlined strategies for HOKA to enhance brand performance, including improving market share, enhancing consumer engagement through upgraded DTC membership programs, and increasing global brand awareness through marketing investments [5] - HOKA, established in 2009, focuses on high-performance running and outdoor footwear, gaining recognition among sports enthusiasts and expanding into casual athletic markets [5]