DECK

Deckers Outdoor Corp.

Consumer


Presented:05/27/2021
Price:$339.11
Cap:$9.55B
Current Price:$161.85
Cap:$24.68B

Presented

Date05/27/2021
Price$339.11
Market Cap$9.55B
Ent Value$8.51B
P/E Ratio25.17x
Book Value$51.75
Div Yield0%
Shares O/S28.17M
Ave Daily Vol272,235
Short Int6.00%

Current

Price$161.85
Market Cap$24.68B
Deckers Outdoor Corp. engages in the business of designing, marketing, and distributing footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. It operates through the following segments: UGG Brand, HOKA Brand, Teva Brand, Sanuk Brand, Other Brands, and Direct-to-Consumer. The UGG Brand segment offers a line of premium footwear, apparel, and accessories. The HOKA Brand segment sells footwear and apparel that offers enhanced cushioning and inherent stability with minimal weight, originally designed for ultra-runners. The Teva Brand segment focuses on the sport sandal and modern outdoor lifestyle category, such as sandals, shoes, and boots. The Sanuk Brand segment originated in Southern California surf culture and has emerged into a lifestyle brand with a presence in the relaxed casual shoe and sandal categories. The Other Brands segment includes the Koolaburra by UGG brand. The Direct-to-Consumer segment comprises of retail stores and e-commerce websites. The company was founded by Douglas B. Otto in 1973 and is headquartered in Goleta, CA.

Publicly traded companies mentioned herein: Deckers Outdoor Corp (DECK), Dicks Sporting Goods Inc (DKS), 

Highlights

The presenter is long shares of Deckers Outdoor Corp (DECK), which designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. He believes the stock should see material upside led by the continued growth of DECK’s HOKA brand, and a recovery in demand for the UGG brand in the US and internationally as economies open up. The stock is currently trading at $345, or ~20x CY22/FY23 Street EPS of $17.50, which the presenter views as conservative. He targets $460 over the next 12 months for 35% upside. 

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Idea Discussion

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