2023-05-26 07:53:51 ET
Deckers Outdoor Corporation ( NYSE: DECK ) is being sized up on Wall Street on Friday after strength with the Hoka brand powered a Q4 earnings topper , although full-year revenue and profit guidance came in slightly below expectations.
Bank of America reiterated a Buy rating on Deckers Outdoor ( DECK ) and called the recent pullback in shares a particularly attractive buying opportunity. Analyst Christopher Nardone and team view management's FY24 outlook as conservative and see a high likelihood of upward estimate revisions given the expectation for outsized growth at HOKA.
BTIG also reiterated a Buy rating on the footwear stock. Analyst Janine Stichter said the below-consensus guidance reflects a combination of management's typical conservatism, combined with strategic long-term business management.
"Against the backdrop of most other brands speaking to a challenged macro, tepid wholesale demand, and elevated inventories, DECK appears to be emerging largely unscathed from these headwinds."
Stichter and team continue to see DECK's fundamentals as poised to outperform and believe both estimates and multiples could move higher as a result.
During the Deckers Outdoor ( DECK ) earnings call, management pointed to renewed interest in the UGG brand. Search interest in the U.S. increased for UGG was up 26% versus last year per Google Trends. Additionally, from a purchasing perspective, UGG was noted to continue to over-index with the 18 to 34 year-old age group, which was up 21% versus last year
Shares of Deckers Outdoor ( DECK ) fell 2.72% in the premarket session to $437.76.
More on Deckers Outdoor:
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- Deckers Outdoor earnings call transcript
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- Seeking Alpha's Quant Rating for Deckers Outdoor
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Deckers Outdoor bulls call out buying opportunity with guidance seen as conservative