Susquehanna Rates Deckers Outdoor as ‘Neutral’
Deckers Outdoor (DECK) has a market cap of $2.1 billion. It rose by 1.1% to close at $67.01 per share on August 12, 2016.
Nov. 20 2020, Updated 1:44 p.m. ET
Price movement
Deckers Outdoor (DECK) has a market cap of $2.1 billion. It rose by 1.1% to close at $67.01 per share on August 12, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 4.4%, 7.2%, and 42.0%, respectively, on the same day. DECK is trading 6.1% above its 20-day moving average, 12.8% above its 50-day moving average, and 23.7% above its 200-day moving average.
Related ETF and peers
The Vanguard Extended Market ETF (VXF) invests 0.05% of its holdings in Deckers Outdoor. The ETF tracks a market-cap-weighted version of the S&P Total Market Index, excluding all S&P 500 stocks. The YTD price movement of VXF was 8.4% on August 12.
The market caps of Deckers Outdoor’s competitors are as follows:
Deckers Outdoor’s rating
Susquehanna has initiated the coverage of Deckers Outdoor with a “neutral” rating and set the stock price target at $59 per share.
Performance of Deckers Outdoor in fiscal 1Q17
Deckers Outdoor reported fiscal 1Q17 net sales of $174.4 million, a fall of 18.4% from the net sales of $213.8 million in fiscal 1Q16. The company’s gross profit margin rose by 8.0% between fiscals 1Q16 and 1Q17.
Its net income and EPS (earnings per share) fell to -$58.9 million and -$1.84, respectively, in fiscal 1Q17, compared with -$47.3 million and -$1.43, respectively, in fiscal 1Q16. DECK’s cash and cash equivalents fell by 17.8% and its inventories rose by 56.5% between fiscals 4Q16 and 1Q17. Its current ratio fell to 2.3x and its debt-to-equity ratio rose to 0.48x in fiscal 1Q17, compared with 3.3x and 0.32, respectively, in fiscal 4Q16.
Projections
The company has made the following projections for fiscal 2Q17 and 2017:
Fiscal 2017
- net sales growth in the range of -3% to flat
- gross margin in the range of 47.0% to 47.5%
- EPS in the range of $4.05 to $4.40, which exclude any pretax charges from restructuring charges of $10 million–$15 million
Fiscal 2Q17
- net sales growth in the range of 1% to 3%
- EPS in the range of ~$1.12 to $1.22
For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.
