DECK: Earnings Deep Dive

July 25, 2024

DECK has 2 prize horses: its Hoka running brand and its newly-revived UGG winter shoe brand.

Both brands are reknown for comfort, and both have helped propel the stock +170% higher over the last 2 years alone.

In the 4th quarter:

  • Hoka sales grew +34% YoY, reaching $533 million and besting estimates of $487 million.
  • Ugg sales grew +15% YoY to $361 million, beating estimate of $282 million.
  • Wholesale and DTC channels logged more than +20% growth
  • International sales were up +25% YoY (higher growth rate vs. domestic sales)

DECK shares popped following the report to a new all-time high.

Can the company continue to blow expectations out of the water?

LikeFolio data says there's a good chance. Especially considering the current setup.

Last month a research note from M Science highlighted a deceleration in sales for Hoka and UGG brands in June, attributing the slowdown to high inflation and slow wage growth.

Many investors looked to Nike's poor showing as further proof of discretionary weakness.

DECK shares are trading -22% lower from June highs.

LikeFolio data suggests it may not be wise to lump DECK in with the likes of NKE. Here's why.

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