Deckers Outdoor jumps as full-price selling boosts annual profit outlook

Crocs

26/07/2024 15:06

(Updates)
    ** Shares of Deckers Outdoor  DECK.N  up about 13% at
$947.69 in early trade
    ** UGG boots maker hiked FY profit forecast, beat Q1
estimates on Thursday due to strong demand for its footwear
brands
    ** Footwear peers On Holding  ONON.N  up more than 4%, Crocs
 CROX.O  gains 4.5%, and Skechers  SKX.N  rises ~2%
    ** Barclays says stock is set for a year of beat-and-raises
as brand momentum and performance persists at both HOKA and UGG 
    ** "The balance of FY25 is expected to encounter a more
normalized promotional environment and lower full-price selling
as HOKA and UGG lap "exceptional" full-price selling in FY24" -
TD Cowen analyst John Kernan
    ** Brokerage raises PT to $1,055 from $1,039, retains "buy"
rating on stock
    ** Despite near-term risks from higher freight expenses, top
line and earnings to be helped by higher demand from retailers,
optimism over back-to-school season, especially for UGG and
full-priced selling - Barclays analyst Adrienne Yih
    ** Brokerage lifts PT to 1,090 from 1,089, keeps
"overweight" rating
    ** Sixteen of 22 brokerages rate DECK stock "buy" or higher,
five "hold" and one "sell"; their median PT is $1,090 - LSEG
data
    ** So far, as of last close, DECK up ~26%

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))