Top 5 Stock Picks of Michael Bilger’s 59 North Capital

2. Deckers Outdoor Corporation (NYSE:DECK)

59 North Capital Stake: $36,712,000         

Percentage of 59 North Capital’s Portfolio: 10.52%

Number of Hedge Fund Holders: 35

Deckers Outdoor Corporation (NYSE:DECK) produces and distributes footwear, clothes, and accessories for leisure and performance use. The primary brands of the company include UGG, Teva, and Sanuk. 59 North Capital decreased its investment in Deckers Outdoor Corporation (NYSE:DECK) by 42% during Q2 2022. The retail environment has been challenging as of late with decreasing consumer spending, which may have been a reason why Michael Bilger reduced his exposure to the retail sector.

Deckers Outdoor Corporation (NYSE:DECK) reported solid results for the Q1 2023 quarter, reporting revenue of $614.46 million, up 21.8% YoY, beating the market consensus by $46.14 million. The normalized EPS of $1.66 beat the market consensus estimate by $0.45. At the end of the quarter, the management approved the share repurchase of $1.2 billion as well.

Earlier this month, Tom Nikic upgraded his rating on Deckers Outdoor Corporation (NYSE:DECK) from Neutral to Outperform. The analyst remains extremely bullish on the prospects of the company’s ‘Hoka brand’, which he believes will continue to grow, resulting in strong future earnings for Deckers Outdoor Corporation (NYSE:DECK). He currently has a price target of $410 on the stock.