Soaring Sales of Hoka & Ugg Shoes Send Deckers to a Record Highs

5月24日

Deckers Outdoor's stock (DECK) surged 13.56% to reach $1,000 for the first time in Q4, driven by the popularity of Ugg boots and Hoka sneakers among Americans. The company's stock has been up 35% this year, after rising 67% in 2023. In contrast, Nike has dropped 15% this year. Deckers Outdoor's stock is expected to remain bullish as it shows it can maintain a high EPS growth rate.

Hoka's net sales jumped 34% in Q4, contributing nearly 56% to Deckers' revenue, while UGG sales were up 14.9%. UGG accounted for nearly 38% of Deckers' overall sales. These strong sales figures have prompted at least 14 analysts to raise their price targets on the stock.

Deckers Outdoor (DECK) reported fiscal 2024 fourth-quarter sales and profit that surpassed analysts' estimates, with earnings per share (EPS) of $4.95, more than $2 above analysts' estimates compiled by Visible Alpha. Revenue increased 21% from a year ago to $959.8 million, also above forecasts. Sales were up 19% to $647.7 million domestically and 25% to $312 million internationally. Direct-To-Consumer (DTC) sales gained 21% to $415.2 million, and wholesale sales climbed 21% to $544.6 million.

CEO Dave Powers said Hoka and Ugg "remain two of the most admired and well-positioned brands in the marketplace." Deckers anticipates full-year EPS for fiscal 2025 of $29.50 to $30, up from $29.16 in fiscal 2024.

Technical Outlook
Deckers Outdoor (DECK) stock is up 13.41% as of the time of writing. The stock is overbought trading with a Relative Strength Index (RSI) of 76.94. The stock formed an upside gapping which is a strong Bullish reversal pattern.