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Deckers Outdoor Corp. Message Board

  • advisorydoc advisorydoc Jul 16, 2013 10:45 AM Flag

    The Piper analyst

    is correct in the long term.... as previously indicated, deck over the long term will be fine and is a good investment.... short term with the upcoming loss not so much... admittedly however i did not expect this short term bounce and short term at least i do not believe this will be sustained given the upcoming loss... i have positioned myself however in a win win situation.... so yes i will cheer any rise but i will not be surprised if deck dips back down to the low 50s

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    • Why you believe it makes a difference at this point if operating margins declined(thanks to sheepskin rising 80% mostly). It has been priced in. Get a clue. Just watch the stock continue to climb.


    • The only problem is that the analyst seemed to think that operating margins in the high teens were good - for a company a few years ago that was at 25% for the year.

      Also, the stock was upgraded to Outperform after the analyst had a Neutral rating for $20 of the rally. Why weren't they saying buy at $35?

      • 2 Replies to bmmatriz03
      • matriz... good comments there... what i am focusing on is the upcoming loss... just do not see how this goes higher in the short term with such a huge loss forecast

      • Again, it's not all about sheepskin. Let's review the facts. From 2010 to 2012:

        -Revenues increased by 41.3%.
        -Cost of Goods Sold increased by 57%.
        -Gross Profit increased by 25.7%.
        -Operating/SGA Expenses increased by 75.4%.
        -Operating Income decreased by 24.9%.

        So really, it's more about operating expenses than sheepskin. With Deckers announcing they will be targeting new stores with operating margins about 1000 basis points lower, get used to a lower margin business. You are not going to see this company as a profit monster anytime soon.

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