Financial Experts Recommend Buying Deckers Outdoor as Shares Rise Despite Market Volatility

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Deckers Outdoor ($NYSE:DECK) Corporation is a leading American outdoor and athletic footwear company known for its popular brands such as UGG, Hoka One One, and Teva. This has caught the attention of financial experts who are now recommending buying Deckers’ stock. One of the reasons for this recommendation is the conflicting trends seen in the share performance of Deckers and its competitor, On Holding AG. According to a recent report by Piper Sandler, it is recommended to sell On Holding AG and buy Deckers due to their diverging trajectories in the stock market. While On Holding AG’s shares have been on a downward trend, Deckers’ stock has continued to gain momentum. This presents a compelling opportunity for investors to take advantage of the disparity in performance between the two companies. Furthermore, Deckers has demonstrated strong financial resilience during the pandemic, which has impacted many businesses worldwide. The company’s e-commerce sales have surged, driven by a shift towards online shopping, and its direct-to-consumer business has also seen significant growth. Moreover, Deckers’ strong balance sheet and efficient cost management strategies have enabled it to weather the economic downturn caused by the pandemic.

In addition to its financial performance, Deckers’ diverse portfolio of brands also positions it well for future growth. The company’s popular UGG brand has consistently performed well, even during times of economic uncertainty. Furthermore, its newer brand acquisitions, such as Hoka One One, have also shown promising growth potential. This diversification of its product offerings reduces Deckers’ reliance on any one brand, making it more resilient to changing market conditions. In conclusion, despite the current market volatility, financial experts recommend buying Deckers Outdoor stock due to its strong performance and potential for future growth. The company’s steady financials, diverse brand portfolio, and effective cost management strategies make it a sound investment choice for those looking to add stability to their portfolio. As the outdoor and athletic footwear industry continues to thrive, Deckers is well-positioned to capitalize on this trend and deliver long-term value to its shareholders.

Stock Price

On Friday, the stock opened at $159.38 and closed at $166.81, representing an impressive increase of 6.39% from the previous closing price of $156.79. The company has a solid track record of delivering strong earnings and revenue growth, driven by its popular brands such as UGG, HOKA ONE ONE, and Teva. Despite the challenging economic climate caused by the ongoing pandemic, Deckers Outdoor has managed to thrive and even exceed expectations. This is largely due to the company’s proactive approach in adapting to changing consumer behaviors and investing in digital strategies. By focusing on e-commerce and direct-to-consumer channels, Deckers Outdoor has been able to mitigate the impact of store closures and drive strong sales growth. The company’s success has not gone unnoticed by financial experts, who view Deckers Outdoor as a strong investment opportunity in the current market conditions.

With its stable financials, robust sales growth, and strategic initiatives, the company is well-positioned for long-term success. Moreover, its strong performance even in the face of market volatility makes it a desirable choice for investors seeking stable returns. In conclusion, Deckers Outdoor’s recent rise in share price is a reflection of its solid financial performance and potential for future growth. Financial experts are recommending investors to consider buying the company’s stock as it continues to outperform the market despite ongoing economic challenges. With its strong brand portfolio, focus on digital transformation, and stable financials, Deckers Outdoor is a compelling choice for investors looking for long-term growth opportunities. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Deckers Outdoor. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Deckers Outdoor. More…

Key Ratios Snapshot

Some of the financial key ratios for Deckers Outdoor are shown below. More…

Analysis

As an analyst at GoodWhale, I have had the opportunity to examine the financial information of DECKERS OUTDOOR. Upon thorough analysis, it is evident that DECKERS OUTDOOR can be classified as a ‘gorilla’ in the industry. This type of company is known for achieving stable and high revenue or earning growth, primarily due to its strong competitive advantage. DECKERS OUTDOOR’s financial performance displays a remarkable consistency in terms of revenue and earnings growth. This indicates that the company’s products or services have a steady demand, and it has a strong hold in the market. This makes DECKERS OUTDOOR an attractive investment for investors seeking long-term growth opportunities. Investors who are interested in companies with a proven track record of revenue and earnings growth would find DECKERS OUTDOOR to be a promising prospect. The company’s strong competitive advantage and stable financial performance make it a low-risk investment option. One of the key factors contributing to DECKERS OUTDOOR’s classification as a ‘gorilla’ is its high health score of 10/10. This score is based on the company’s cash flows and debt, which indicates its ability to sustain future operations during times of crisis. This makes DECKERS OUTDOOR a financially stable and sound company, which further reinforces its appeal to potential investors. DECKERS OUTDOOR also excels in other financial metrics, such as asset management, growth, and profitability. This further highlights the company’s strong performance in the market and its ability to generate returns for investors. However, one area where DECKERS OUTDOOR may not be as attractive to investors is in its dividend payouts. The company has been weak in this aspect, which may not be appealing to investors looking for regular income from their investments. In conclusion, DECKERS OUTDOOR can be classified as a ‘gorilla’ in the industry, and it is likely to attract investors who are seeking a stable and strong growth company. With a high health score and overall strong financial performance, DECKERS OUTDOOR presents a promising investment opportunity for those looking to invest in a competitive and resilient company. More…

Peers

Deckers Outdoor Corp, together with its subsidiaries, engages in the design, manufacture, and marketing of footwear, apparel, and accessories for casual lifestyle use and high performance activities. Its principal brands include UGG, Koolaburra, HOKA ONE ONE, and Teva. The company sells its products to retailers in the United States and 180 countries through its direct-to-consumer channels and third-party distributors. As of December 31, 2018, it operated 310 UGG stores, including full-price, factory, and outlet stores; and e-commerce Websites. The company was founded in 1973 and is headquartered in Goleta, California. Puma SE, together with its subsidiaries, designs, develops, markets, and distributes athletic and casual footwear, apparel, and accessories. The company operates through two segments, Wholesale and Retail. It offers performance and sport-inspired lifestyle products in categories, such as football, running, training, golf, and motorsports. The company sells its products to shoe stores, sporting goods stores, department stores, golf pro shops, tennis specialty stores, mass market retailers, and its own Internet Websites and direct-to-consumer stores. As of December 31, 2018, it operated 1,478 company-owned stores. Puma SE was founded in 1948 and is headquartered in Herzogenaurach, Germany. Vera Bradley, Inc. designs, manufactures, markets, and retails functional accessories for women under the Vera Bradley brand name. The company offers a range of products, including handbags and totes, wallets and wristlets, travel and leisure items, stationery and gifts, eyewear and sunglasses, shoes, baby items, fragrance collections, and home products. It offers its products through its Vera Bradley retail stores; direct-to-consumer channels comprising Vera Bradley direct Website; company-owned outlet stores; company-owned factory outlet stores; independent specialty retailers; national chains; college bookstores; and other retailers. Vera Bradley, Inc. was founded in 1982 and is headquartered in Roanoke, Indiana. Steven Madden, Ltd. designs, sources, markets, licenses, and sells fashion footwear and accessories for women, men, and children worldwide. The company operates through three segments: Wholesale Footwear, Retail, and Licensing. It designs and sources footwear for women under the Steve Madden Women’s Wholesale Footwear, Madden Girl Wholesale Footwear, Freebird by Steven Wholesale Footwear, Betsey Johnson Wholesale Footwear, Dolce Vita Wholesale Footwear, Mad Love Wholesale Footwear, Steven by Steve Madden Wholesale Footwear, Superga Wholesale Footwear, Report Signature Wholesale Footwear, Maurice Mallet Wholesale Footwear, Greyson Wholesale Footwear, BB Dakota Wholesale Footwear, Blondo Wholesale Footwear, Big Star Vintage Wholesale Footwear, Wild Diva Lounge Wholesale Footwear, Bamboo Wholesale Footwear, Betseyville Wholesale Footwear, DVDO by Steve Madden Wholesale Footwear, Cejon Wholesale Footwear, Steve Madden Men’s Wholesale Footwear, De Blossom Collection Wholesale Footwear, Steven by Steve Madden Kids’ Wholesale Footwear, Brian Atwood Wholesale Footwear, Blondo Kids’ Wholesale Footwear, and Betsey Johnson Kids’ Wholesale Footwear brands.

– Puma SE ($OTCPK:PUMSY)

Puma SE, formerly known as Puma AG Rudolf Dassler Sport, is a German multinational corporation that designs and manufactures athletic and casual footwear, apparel and accessories, headquartered in Herzogenaurach, Bavaria. As of 2022, Puma SE has a market cap of 6.88B and a Return on Equity of 16.63%. The company operates in more than 120 countries and employs over 13,000 people worldwide. Puma is the third largest sportswear manufacturer in the world. The company was founded in 1948 by Rudolf Dassler.

– Vera Bradley Inc ($NASDAQ:VRA)

Vera Bradley Inc is a designer and marketer of accessories for women. The company operates through three segments: Direct, Indirect, and Other. The Direct segment offers products through the company’s owned retail stores and website. The Indirect segment provides products to department stores, specialty retailers, and national chains. The Other segment includes licensing and corporate-owned outlets. Vera Bradley Inc was founded in 1982 and is headquartered in Roanoke, Indiana.

– Steven Madden Ltd ($NASDAQ:SHOO)

Steven Madden, Ltd. is a leading designer, marketer and distributor of fashion footwear and accessories for women, men and children. The Company’s wholesale business is engaged in the design, sourcing and marketing of footwear for young women, men and children. The Company’s retail business is engaged in the operation of specialty retail stores and e-commerce Websites, as well as the sale of its products to department store and other retailers. The Company’s products are marketed under a variety of brands, including Steve Madden, Freebird by Steven, Steven by Steve Madden, Grace, Betsey Johnson, Brian Atwood, Blondo, David Tate, Dolce Vita, DV by Dolce Vita, ENZO ANGIOLINI, Mad Love, L.A.M.B., Big Buddha, Report, Wild Diva, CeCe, Betseyville by Betsey Johnson and Superga.

Summary

Piper Sandler, an investment research and advisory firm, has recently recommended contrasting strategies for two footwear companies – On Holding AG and Deckers Outdoor. They suggest selling On Holding AG and buying Deckers, as the two companies have shown contrasting trends in their stock prices. This analysis was made on the same day that the stock price for Deckers Outdoor moved up.

This recommendation implies that Piper Sandler believes that Deckers Outdoor has stronger growth potential and a more favorable investment opportunity compared to On Holding AG. Investors may take this information into consideration when making their own investment decisions on Deckers Outdoor.