Core Viewpoint - Deckers Outdoor has shown resilience and potential for recovery despite recent stock struggles, presenting a buying opportunity for investors due to its strong brand performance and financial metrics. Group 1: Company Performance - Deckers Outdoor has returned nearly 10,000% since its IPO in 1993, driven by the success of Hoka and Ugg brands [1] - The company has achieved industry-leading gross margins approaching 60% [2] - Despite a strong first-quarter earnings report, shares are down 48% from their peak earlier this year due to concerns about slowing growth and tariffs [2] Group 2: Earnings and Guidance - The sell-off in stock price appears to be an overreaction, with overall revenue growth slowing to 6.5%, including 10% growth in Hoka and 3.6% growth in Ugg [5] - Deckers exceeded its first-quarter revenue guidance of $890 million to $910 million, reporting $964.5 million, with EPS of $0.93 surpassing the guidance of $0.62 to $0.67 [6] - Second-quarter guidance anticipates 7% revenue growth, with a range of $1.38 billion to $1.42 billion, and EPS of $1.50 to $1.55 [7] Group 3: Stock Valuation - Deckers is trading at a P/E ratio of 18, which is lower than many peers in the footwear and apparel sector and the S&P 500 at 28 [9] - The company reported 17% revenue growth in the first quarter, with 20% growth in Hoka and 19% in Ugg, indicating potential for higher growth than market expectations [10] - Deckers has a strong balance sheet with no debt and $1.7 billion in cash, representing about 10% of its market cap [10] Group 4: Share Buyback - The company has reduced its shares outstanding by nearly 4 million, or 2.5%, over the last four quarters, with 1.7 million shares bought back in the most recent quarter [11] - Deckers has $2.4 billion remaining under a share repurchase authorization, indicating confidence in its stock value [11] Group 5: International Market Strength - International sales accounted for nearly half of Deckers' revenue in the first quarter, growing 49.7% to $463.3 million [12] - Strong performance was noted in the Asia-Pacific and EMEA regions, with significant sales growth in China [13] - The new Hoka Arahi 8 model has achieved double-digit weekly sell-throughs in EMEA, indicating strong demand [13]