Shares of Deckers Outdoor Corporation DECK have experienced a surge over the past year. The stock has rallied 69%, comfortably outpacing the Zacks Retail-Apparel and Shoes industry’s modest 25.3% growth. The company’s impressive growth can be attributed to its strategic emphasis on expanding brand presence and strengthening direct-to-consumer (DTC) channels.

The company’s commitment to innovation in product development and a strong focus on international market expansion have enabled it to outperform both the broader Retail-Wholesale sector and the S&P 500 index, which grew 35.8% and 36%, respectively, during the same period. Closing at $177.08 on yesterday, DECK stock is moving toward its 52-week high of $184.48 attained on June 3, 2024.

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Deckers has shown solid upward momentum, currently trading above both its 200-day and 50-day simple moving averages (SMA), which are key indicators of price stability and long-term bullish trends. In yesterday’s trading session, DECK surpassed its 200-day SMA of $153.16 and 50-day SMA of $158.57. This technical strength, coupled with continued momentum, signals positive market sentiment and growing investor confidence in DECK's financial health and growth potential.

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DECK Gains on Innovation, DTC Growth & Global Expansion

Deckers is well-positioned for sustained growth through its strategic focus on profitable markets, product innovation and expansion of its global presence. The company is actively working to elevate HOKA into a multibillion-dollar brand, while reinforcing UGG as a global lifestyle brand. HOKA and UGG achieved sales increases of 34.7% and 13%, respectively, in the second quarter of fiscal 2025. The continued success of these brands, along with product assortment expansion and distribution channel optimization, ensures long-term growth potential.

A key component of Deckers’ success is its strong DTC business, which saw net sales increase of 19.9% to $397.7 million, with DTC comparable net sales growing 17% in the second quarter. By investing in digital capabilities and enhancing its omnichannel presence, Deckers is creating seamless customer experiences and expanding brand accessibility. The company’s focus on consumer engagement through targeted marketing, collaborations and seasonal product innovations continues to strengthen brand loyalty and drive sales. 

Deckers also benefits from a robust wholesale channel, which contributes significantly to its overall revenues. Wholesale revenues grew 20.2% year over year to $913.7 million in the second quarter. This channel, combined with growing brand recognition, has allowed the company to broaden its market reach. With a strong wholesale network and strategic retail partnerships, Deckers is well-positioned to capitalize on emerging opportunities for revenue growth.

International expansion has been another critical factor in Deckers' growth, with international sales surging 33% year over year in the second quarter. The success of both UGG and HOKA in global markets, driven by targeted investments in new stores and retail locations, underscores the company’s expanding global footprint.

Deckers Projects Strong FY25 Growth

Deckers' strong expansion strategy has played a key role in driving its growth. The company anticipates total revenues to rise approximately 12% to $4.8 billion in fiscal 2025, with HOKA expected to grow around 24%. UGG is anticipated to see mid-single-digit growth. 

The gross margin is forecasted to be in the range of 55-55.5%, up from the previous estimate of 54%. Management now projects earnings to be in the range of $5.15-$5.25 per share, an increase from $4.86 reported last year and higher than the earlier earnings guidance of $4.96-$5.11 per share.

Estimate Revisions Favoring DECK Stock

Analysts have responded positively to Deckers’ prospects, reflected in upward revisions in the Zacks Consensus Estimate for earnings per share. In the past 30 days, analysts have increased their estimates for the current fiscal year by 17 cents. The consensus estimate for earnings is pegged at $5.45 per share. 

The consensus estimate for the next fiscal year has also been raised 29 cents to $6.14 per share. The Zacks Consensus Estimate for the current and next fiscal year’s sales is pegged at $4.88 billion and $5.34 billion, indicating year-over-year growth of 13.7% and 9.5%, respectively.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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Conclusion

Investors may consider DECK stock due to its strong growth trajectory, solid technical strength and impressive share performance. The company has experienced significant gains, outperforming both the retail sector and major indices, with its stock up substantially over the past year. DECK is trading above both its 200-day and 50-day simple moving averages, which signals price stability and long-term bullish trends. 

The company’s growth is driven by strategic initiatives like DTC channel expansion, product innovation and international market penetration. With HOKA and UGG brands posting strong sales increases, Deckers is well-positioned for continued success. Upward revisions in earnings estimates reflect analysts’ optimism, further boosting investor confidence in DECK's performance. Deckers currently sports a Zacks Rank #1 (Strong Buy).

Other Key Picks

Other top-ranked stocks are Abercrombie & Fitch Co. ANF, Gildan Activewear Inc. GIL and Steven Madden, Ltd. SHOO.

Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANF delivered a 16.8% earnings surprise in the last reported quarter. 

The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 63.4% and 13%, respectively, from the fiscal reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.

Gildan is a manufacturer and marketer of premium quality branded basic activewear for sale principally in the wholesale imprinted activewear segment of the North American apparel market. It currently carries a Zacks Rank #2 (Buy). 

The consensus estimate for Gildan’s current financial-year earnings and sales indicates growth of 15.6% and 1.5%, respectively, from the 2023 figures. GIL has a trailing four-quarter average earnings surprise of 5.4%.

Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2. 

The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.2% and 12.7%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.8%.

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