Shares of Deckers Outdoor (DECK) rose over 10% in after-hours trading after the company reported better-than-anticipated numbers for its first quarter of Fiscal Year 2025.
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Deckers Outdoor designs and distributes footwear, apparel, and accessories for everyday casual use and high-performance activities.
DECK’s Q1 Results
The company reported robust earnings and revenues driven by strong demand for its Hoka and Ugg brands.
Earnings per share came in at $4.52 per share, which surpassed the Street’s expectations of $3.49 and increased 87% year-over-year. Meanwhile, sales increased by 22% year-over-year, with revenue hitting $825 million. This beat analysts’ expectations of $808 million.
Looking forward, management continues to expect revenue to increase approximately 10% to $4.7 billion. Meanwhile, diluted earnings per share are projected to be between $29.75 and $30.65.
Investor Sentiment for DECK Stock
In addition to delivering strong results, the sentiment among TipRanks investors for DECK stock is also very positive. Out of the 748,140 portfolios tracked by TipRanks, 0.2% hold DECK stock. In addition, the average portfolio weighting allocated towards CMG among those who do have a position is almost 4%. This suggests that investors of the company are fairly confident about its future.
Moreover, in the last 30 days, 3.3% of those holding the stock increased their positions. As a result, the stock’s sentiment is well above the sector average, as demonstrated in the following image:
Is Deck a Good Stock to Buy?
After the fiscal Q1 earnings update, John Kernan from TD Cowen reaffirmed his Buy rating on DECK stock and increased the price target to $1,039 from $1,055 per share.
Overall, DECK stock has received a Moderate Buy consensus rating based on 10 recommendations, including seven Buys and three Hold recommendations. The analysts’ average price target on LW stock of $90.67 implies 60.7% upside potential.
It should be noted that the price target might change due to an increase in DECK stock price yesterday post-Q1 earnings release.
