Deckers Brands Announces Record Q4 Results, Stock Surges
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Deckers Brands Announces Record Q4 Results, Stock Surges

Deckers Brands reported record net sales and significant growth across key brands, particularly HOKA and UGG, in its Q4 and fiscal year 2024 financial results.
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Deckers Brands (NYSE: DECK) reported its financial results for the fourth quarter and full fiscal year 2024, ending March 31, 2024. The company posted record net sales and significant growth across its key brands, particularly HOKA and UGG.

Deckers Brands Full Fiscal Year 2024 Financial Review

Net sales for the full fiscal year 2024 increased by 18.2% to $4.288 billion compared to the previous year. Domestic net sales grew by 16.8% to $2.864 billion, while international net sales increased by 21.1% to $1.424 billion. Direct-to-consumer (DTC) sales saw a substantial increase of 26.5% to $1.855 billion, and wholesale sales rose by 12.6% to $2.432 billion.

Regarding brand performance, HOKA continued its strong growth trajectory with a 27.9% increase in net sales, reaching $1.807 billion. UGG also experienced significant growth, with net sales increasing by 16.1% to $2.239 billion. However, Teva and Sanuk faced challenges, with net sales decreasing by 18.9% and 33%, respectively. Other brands, primarily Koolaburra, saw a modest increase of 5.9% in net sales.

Key financial metrics also improved, with gross margin rising to 55.6% from 50.3% in the previous year. SG&A expenses increased to $1.458 billion while operating income rose to $927.5 million. Diluted EPS significantly increased, reaching $29.16 compared to $19.37 in the previous fiscal year.

Balance Sheet and Stock Repurchase Program

Deckers Brands’ balance sheet remained strong, with cash and cash equivalents increasing to $1.502 billion from $981.8 million in the previous year. Inventories decreased to $474.3 million, and the company had no outstanding borrowings as of March 31, 2024.

During the fourth quarter, Deckers repurchased approximately 119 thousand shares for $104.3 million at an average price of $875.01 per share. For the full fiscal year, the company repurchased approximately 715 thousand shares for $414.9 million at an average price of $580.44 per share. As of March 31, 2024, the remaining authorization for stock repurchases was approximately $941.7 million.

Deckers Stock Price Update

Deckers Brands’ stock has been performing exceptionally well, with the stock price at $1,029.08 as of 12:19 PM EDT on the day of the earnings report. The company’s market capitalization stands at $26.415 billion, with an average trading volume of 260,000 shares.

Comparative returns showcase the stock’s outstanding performance, with a year-to-date return of 53.95%, a 1-year return of 129.30%, a 3-year return of 206.49%, and a 5-year return of 598.11%. These returns significantly outperform the S&P 500 benchmark across all time periods.

Valuation measures indicate a trailing P/E ratio of 32.69 and a forward P/E ratio of 30.21. The company’s price/sales (TTM) ratio is 5.76, and its price/book (MRQ) ratio is 11.04. The enterprise value/revenue and enterprise value/EBITDA ratios stand at 5.30 and 22.15, respectively.

Deckers Brands’ financial highlights demonstrate strong profitability and growth. The company’s profit margin is 17.71%, with a return on assets (TTM) of 20.37% and a return on equity (TTM) of 39.22%. Revenue (TTM) reached $4.29 billion, with a net income available to common stockholders (TTM) of $759.56 million and a diluted EPS (TTM) of $27.68.

Analyst price targets for Deckers Brands range from a low estimate of $744.98 to a high estimate of $1,150.00.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.