Hoka-owner Deckers's shares jump 13%, breach $1,000 mark for the first time
Shares of Deckers Outdoor jumped 13% to breach the $1,000 mark for the first time on Friday, as the footwear company posted upbeat fourth-quarter results, riding on the popularity of Ugg boots and Hoka sneakers among Americans.
of Outdoor jumped 13% to breach the $1,000 mark for the first time on Friday, as the company posted upbeat fourth-quarter results, riding on the popularity of boots and sneakers among Americans.The company's has been on a tear since the beginning of last year, and is up about 35% this year, after rising 67% in 2023. In contrast, has dropped 15.2% this year.
"FY 2024 was a banner year for DECK with its two big delivering some of the strongest growth across footwear, and demonstrating their ability to continue bringing in new customers," analyst Paul Lejuez wrote in a note.
Hoka's net jumped 34% in the fourth quarter, contributing nearly 56% to Deckers' revenue, while those of UGG were up 14.9%. UGG accounted for nearly 38% of its overall sales.
Those strong sales figures prompted at least 14 to raise their price targets on the stock.
Upstart such as and Deckers Outdoor have been able to sustain as wholesale retailers open their shelf spaces to their innovative products at a time when giants such as Nike and are taking a hit.
Hoka and UGG have become two of the strongest and most in-demand brands in the footwear space, CEO David Powers said on a post-earnings call on Thursday.
"While we were cautious on Hoka heading into the quarter due to competition from one of our channel checks, Q4 delivered well above our expectations," analyst Jesalyn Wong said.
The average rating of 22 analysts on the stock is "buy", with a price target of $1,039, according to data.
Wedbush analyst Tom Nikic said Deckers continues to be one of "the fundamentally strongest names" in the brokerage's coverage.
Source: Stocks-Markets-Economic Times
