Buy Rating Affirmed: Poser Forecasts Deckers Outdoor to Surpass Q4 Earnings and Maintain Strong Growth into FY2025

Analyst Sam Poser of Williams Trading maintained a Buy rating on Deckers Outdoor (DECK – Research Report), with a price target of $1,010.00.

Sam Poser has given his Buy rating due to a combination of factors, including the expectation of a significant beat in fourth-quarter 2024 earnings. He predicts Deckers Outdoor’s revenues will be fueled by strong performances from the UGG and HOKA brands. Poser also anticipates less spending on selling, general, and administrative expenses (SG&A) than previously expected, which he believes will contribute to an earnings per share (EPS) beat. Additionally, he recognizes Deckers Outdoor’s skillful management of both brand scarcity and investor expectations, which has consistently resulted in impressive margin growth and revenue increases over time.
Poser’s confidence in Deckers Outdoor extends to future fiscal periods. He expects that if the company’s EPS and revenue for fiscal year 2024 meet consensus estimates, with HOKA and UGG growing in line with expectations, then the guidance for fiscal year 2025 should suggest healthy growth rates of around 10% for EPS and 8% for revenue at the midpoints. Despite these positive projections, Poser still believes the initial guidance for fiscal year 2025 will be conservative and will be surpassed by the actual performance, especially in terms of HOKA and UGG’s revenue growth. This anticipation of conservative guidance followed by stronger-than-expected results underpins his bullish stance on Deckers Outdoor’s stock.

According to TipRanks, Poser is a 5-star analyst with an average return of 17.7% and a 54.08% success rate. Poser covers the Consumer Cyclical sector, focusing on stocks such as Nike, Steven Madden, and Wolverine World Wide.

In another report released on May 6, Wedbush also maintained a Buy rating on the stock with a $1,000.00 price target.

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Deckers Outdoor (DECK) Company Description:

Deckers Outdoor Corp. engages in the business of designing, marketing, and distributing footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. It operates through the following segments: UGG Brand, HOKA Brand, Teva Brand, Sanuk Brand, Other Brands, and Direct-to-Consumer. The UGG Brand segment offers a line of premium footwear, apparel, and accessories. The HOKA Brand segment sells footwear and apparel that offers enhanced cushioning and inherent stability with minimal weight, originally designed for ultra-runners. The Teva Brand segment focuses on the sport sandal and modern outdoor lifestyle category, such as sandals, shoes, and boots. The Sanuk Brand segment originated in Southern California surf culture and has emerged into a lifestyle brand with a presence in the relaxed casual shoe and sandal categories. The Other Brands segment includes the Koolaburra by UGG brand. The Direct-to-Consumer segment comprises of retail stores and e-commerce websites. The company was founded by Douglas B. Otto in 1973 and is headquartered in Goleta, CA.