Deckers Shares Maintains Target From Seaport On Strong Sales And Brand Heat By Investing.com | Old North State Wealth News
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Deckers shares maintains target from Seaport on strong sales and brand heat By Investing.com

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On Friday, Seaport Global Securities maintained a Buy rating for Deckers Outdoor (NYSE: NYSE:), with a consistent price target of $1,050.00 for the shares. The company reported significant beats in sales, EBIT, and EPS, driven by double-digit growth across key areas such as HOKA and UGG brands, direct-to-consumer and wholesale channels, and both U.S. and international markets.

Despite a sales outlook for FY25 that aligns with consensus expectations, Deckers’ EPS guidance is slightly less optimistic, primarily due to anticipated gross margin (GM) contraction.

Deckers’ GM expansion in FY24 was notably attributed to strong full-price selling, a trend that has continued into the first quarter of FY25. While there is an expectation for a return to normal full-price selling levels, the current strength suggests potential upside to FY25 guidance if the HOKA and UGG brands maintain their momentum.

HOKA, in particular, has grown beyond its core running market, appealing to lifestyle consumers as well. Deckers aims to balance the brand’s heritage with its broader appeal.

The UGG brand, too, is expected to continue growing in FY25. The previous fiscal year saw demand exceeding supply, and with popular lines such as Tasman and Ultra Mini, prebooks for fall 2024 are likely to increase. Deckers also plans to introduce new products, including the Golden collection, to drive further growth.

In light of these factors, Seaport Global Securities has slightly raised its estimates for Deckers, indicating an upward bias in their projections. The analyst’s commentary underscores the company’s strategic brand positioning and the potential for continued strong performance in the coming fiscal year.

InvestingPro Insights

As Deckers Outdoor (NYSE: DECK) navigates the FY25 with strong brand momentum and strategic positioning, InvestingPro data and tips offer additional perspectives for investors. With a market capitalization of $23.22 billion and a robust revenue growth of 15.34% in the last twelve months as of Q3 2024, Deckers showcases financial growth that aligns with the positive outlook from Seaport Global Securities.

InvestingPro Tips highlight that Deckers holds more cash than debt on its balance sheet, which may provide financial flexibility and stability. Additionally, 6 analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company’s future performance. This aligns with the analyst’s commentary on the potential for continued strong performance and the upward bias in projections.

Key InvestingPro Data metrics to consider include a P/E ratio of 32.49, indicating the company’s earnings relative to its share price, and a Price / Book ratio of 11.02, which may suggest a premium market valuation. Moreover, the company’s gross profit margin stands at a healthy 54.43%, reflecting efficient operations and cost management.

For investors looking to delve deeper into Deckers’ financials and strategic insights, InvestingPro offers additional tips beyond those mentioned here. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a comprehensive suite of tools and analyses to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.



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