Deckers Outdoor Corp (DECK) Hits 52-Week Low at $156.28 But Shows Strong 1-Year Growth of 78.18% - Stock Split, Revenue Surge & Positive Analyst Outlook
Deckers Outdoor Corp (NYSE: DECK) stock has plummeted to a 52-week low of $156.28, signaling a challenging time for the footwear and apparel company famous for its UGG brand. However, despite this recent dip, the company has recorded an impressive 78.18% increase in the past year, indicating a potentially volatile yet upward trend for investors.
In a bid to make its shares more accessible, Deckers executed a six-for-one stock split, approved by shareholders and formalized through an amendment to its Certificate of Incorporation. The company also reported a substantial 22% revenue growth in Q1 FY2025, totaling $825 million, driven by strong performances from the HOKA and UGG brands. This led to an upward revision of Deckers' annual profit forecast.
Investment firms like Baird, Truist Securities, and TD Cowen have expressed optimism for Deckers, raising their price targets for the company. Baird maintained an Outperform rating with a $1,075 price target, while TD Cowen endorsed a Buy rating and increased its target to $1,055.
Deckers' recent leadership changes, including Stefano Caroti taking over as CEO, and adjustments in inventory strategies by retailers like Dicks Sporting Goods and Nordstrom to accommodate more HOKA and UGG products, reflect the company's growth and influence in the market.
Analysis:
Deckers Outdoor Corp has faced a recent stock price decline but has shown strong growth over the past year. With positive revenue results, a stock split, and analyst endorsements, the company's future looks promising. Investors may find value in Deckers' financial metrics, market capitalization, revenue growth, and analyst forecasts. The company's low P/E and PEG ratios suggest potential undervaluation, making it an attractive investment opportunity. Overall, Deckers' performance and positive outlook make it a compelling option for investors looking to diversify their portfolios.