Deckers Outdoor Faces Challenges Despite Q4 Earnings Boost

Deckers Outdoor struggles in performance despite a robust Q4. Earnings per share beat forecasts, but revenue guidance missed slightly, indicating potential stock price impacts. Is this a buying opportunity or a reason to remain cautious?

Date: 28-02-2025

AI Rating: 5

Performance Overview: Deckers Outdoor's stock has lagged behind the broader market and the Consumer Discretionary Select Sector SPDR Fund, indicating struggles in the competitive footwear and apparel market. Over the past year, while the S&P 500 rallied 17.5%, DECK stock gained only marginally and is down 28.6% year-to-date.

Earnings Per Share (EPS): In its latest earnings report, Deckers reported a GAAP EPS of $3, exceeding forecasts by 14.9%. For the ongoing fiscal year ending in March 2025, analysts expect EPS to grow by 21.2% year-over-year to $5.89. This upward trajectory in EPS could indicate stronger profitability moving forward.

Revenue Growth: Deckers reported a year-over-year revenue increase of 17.1%, reaching $1.83 billion. However, despite an increase, the revenue guidance was slightly below analyst estimates. For the full year, the revenue guidance was raised to $4.9 billion at the midpoint, still falling short of market expectations.

Analyst Consensus: Currently, the consensus among 20 analysts is a “Moderate Buy,” supported by a blend of “Strong Buy,” “Moderate Buy,” and “Hold” ratings. Interestingly, the configuration has improved, with an increasing bullish outlook reflected in nine analysts suggesting a “Strong Buy.”

Price Targets: Recent analyses show a mean price target of $223.76, suggesting substantial upside potential of 54.3% from current levels. A Street-high price target of $284 suggests even greater potential for investors.

Stocks: DECK