|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||91.58 - 93.97|
|52 Week Range||56.48 - 98.92|
|PE Ratio (TTM)||38.03|
|Earnings Date||May 23, 2018 - May 29, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||95.75|
Of the 14 analysts covering Deckers Outdoor (DECK) on April 16, 2018, 71% recommended “hold,” 21% recommended “buy,” and 8% recommended “sell.” There have been no price revisions in the last month. Analysts’ 12-month average target price for Deckers Outdoor stock is $95.75, which reflects a 0.8% upside based on its stock price on April 16, 2018.
Forward PE ratios (stock price divided by analysts’ earnings projections for the next four quarters) are frequently used for making investment decisions. As of April 16, 2018, Skechers (SKX) was trading at a 12-month forward PE ratio of ~17.7x, much higher than other footwear retailers. In comparison, Deckers Outdoor (DECK), DSW (DSW), and Foot Locker (FL) were trading at 12-month forward PE ratios of 16.2x, 13.1x, and 9.6x, respectively.
Analysts expect Foot Locker’s (FL) adjusted EPS (earnings per share) to grow 8.8% to $4.47 in fiscal 2018. The company has guided for its EPS to grow by double digits, driven by expected increases in its top line and a reduced share count in 2H18. Its effective tax rate is expected to be ~27%–28%.
In fiscal 2017 (ended February 3, 2018), Foot Locker’s (FL) gross margin contracted by 230 basis points to 31.6%, mainly due to a narrower merchandise margin. The rise in SG&A and litigation expenses led to a 42.9% decline in operating income to $571 million. Foot Locker had an operating margin of 7.3%, compared with 12.9% in fiscal 2016.
Analysts expect Foot Locker’s (FL) sales to fall 1% to $7.7 billion in fiscal 2018. Foot Locker expects sales trends to improve in 2H18, driven mainly by increased sales of premium products. Foot Locker is eyeing higher penetration in the apparel category.
Analyst Ivan Feinseth downgraded the shares to Neutral from Buy on Wednesday, writing that the stock looks fully valued at current levels, and that favorable business trends may be peaking. Deckers benefited from strong demand for its UGG brand of footwear, helped by harsh winter conditions, and it’s also been bolstering its omnichannel capabilities.
Shoes are a new must-have for Buckingham Research. The firm initiated coverage on five companies Wednesday with bullish to neutral sentiment across manufacturers and distributors. Foot Locker: Buy, $54 ...
As of April 16, 2018, Deckers Outdoor (DECK), DSW (DSW), and Skechers (SKX) stock had risen 18.3%, 0.6%, 12.1%, respectively, year-to-date. However, Foot Locker (FL) had fallen 7.5%. Deckers had a good holiday season, with the UGG brand showing strength and increases in full-price selling. Skechers’s robust international business continued to boost its top line. However, Foot Locker had a weaker holiday season, with footwear comps falling by mid-single digits. For DSW, its buyout of Ebuys has created troubles. The company is exiting Ebuys as losses continue to swell.
Short interest is moderately high for DECK with between 10 and 15% of shares outstanding currently on loan. This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on February 9.
Most of the analysts that cover Deckers (DECK) have recommended a “hold” rating. As of March 29, 2018, of the 15 analysts covering the stock, 73% recommended a “hold,” 20% recommended a “buy,” and the remaining 7.0% gave it a “sell” rating. Following fiscal 3Q18 results on February 1, 2018, many analysts have revised their target price for Deckers.
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The company argues that a reduction in stores is in sync with the changes that the retail sector is undergoing currently. The company expects most of the store closures to come through natural lease expirations. Under the restructuring plan announced in 2016, the company has shut down 27 retail outlets as of December 31, 2017.
Deckers (DECK), like most retailers, is working on improving the omnichannel experience to grow sales amid stiff competition from online retailers. The omnichannel approach implies giving a customer a seamless experience (through integration among all the sales channels) regardless of whether the customer is shopping online or through the retail store. Lately, consumer preference has shifted to online shopping because of the convenience of shopping anytime from a wide selection of merchandise, competitive pricing, and faster deliveries.
Fourth paragraph, first sentence of release should read: A mix of HOKA’s premium running shoe technology and Engineered Garments’ sportswear heritage, the special edition Hupana will retail for $130 .
Deckers (DECK) has undertaken strategic initiatives to drive long-term growth. Its store-fleet optimization plan focuses on striking the right balance between digital and physical stores.
This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on February 9. Over the last month, growth of ETFs holding DECK is favorable, with net inflows of $5.13 billion. This is among the highest net inflows seen over the last one-year and the rate of additional inflows appears to be increasing.