6. Deckers Outdoor Corp. (NYSE:DECK)
Share Price as of August 30: $941.43
Number of Hedge Fund Holders: 52
Deckers Outdoor Corp. (NYSE:DECK) is a global footwear designer and distributor renowned for its iconic brands UGG Australia, Teva, and Sanuk. They offer a range of footwear for various activities, from casual wear to outdoor adventures, with a focus on comfort.
In the first quarter of 2025, the company recorded a 22.13% year-over-year improvement. This translated into a revenue of $825.35 million, which was $19.17 million higher than analyst estimates for the quarter. The earnings per share were $4.52.
HOKA footwear brand running shoes was the main growth driver, rising 30%. UGG also experienced growth, increasing 14%. Both D2C and wholesale channels saw increases of over 20%, demonstrating strong demand across the US and global marketplace, particularly in China and EMEA. International regions increased by 21% overall. These impressive results give the company confidence in its updated outlook for the fiscal full year 2025.
HOKA’s performance was driven by compelling product assortment, including new launches, and growth of continued designs. The brand is expanding its distribution through its global marketing campaign, FLY HUMAN FLY.
UGG revenue increased due to strong full-price selling of key iconic franchises. In addition to product development and marketing activations. The brand’s upcoming Feels Like UGG campaign will further enhance its consumer connections.
Both UGG and HOKA brands are well-positioned for continued growth in the future. The company also has other footwear brands like Teva, Sanuk, and Koolaburra, which have exhibited a combination of increases, declines, and flat sales. The brand’s focus on innovation and consumer-informed product development has contributed to its success
In just 1 year, this company saw a surge in its stock price by 81.44%. Given that it has used stock splits as a way to deal with stock price surges to improve investor interest, another stock split may happen for Deckers Outdoor Corp. (NYSE:DECK). So far, investors seem to trust this company, as it is held by 52 hedge funds. The largest stakeholder is Millennium Management, with a position of $226,316,390.
FPA Queens Road Small Cap Value Fund stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q2 2024 investor letter:
“Deckers Outdoor Corporation (NYSE:DECK) is a footwear and apparel company that owns the UGG, Hoka, Teva, Sanuk, and Koolaburra brands. We think management has done a terrific job growing and extending the UGG franchise. Now they are replicating that success with Hoka running shoes, which surpassed $1 billion in sales in 2023. At over thirty times forward earnings (as of June 30, 2024), we have weighed Deckers’ valuation against the quality of its management team, strong brands, and net cash balance sheet and have trimmed our position. We first bought a small position in Deckers in 2015 and 2016 when the company was struggling with supply chain issues. Its stock price has increased more than ten times since then because of excellent operating performance, and we have trimmed all the way up. Given the company’s exceptional financial performance and growth, the stock trades on the higher side of our “range of reasonableness” and we have continued to trim accordingly.”
