The analysts wrote, “While 4Q was a mixed bag (16¢ beat driven by SG&A and share buybacks), key barometers of UGG’s health and relevance (flattish U.S. comps despite warm weather, accelerating sales as weather cooled) indicate the brand is st I is in I ill very much alive despite recent struggles. And management appears to be approaching 2013 with reinvigorated tenacity, announcing several potentially significant new strategies, including UGG Pure (a new lower-cost material made from pure wool to help mitigate sheepskin inflation and broaden UGG’s pricing capabilities) supply chain investments to shorten lead times and add more product newness and a more expansive outlet push While DECK’s recovery will likely be more U-shaped than V-shaped, we think management’s proactive response to the shifting competitive, costing, and consumer landscape should better position the company for sustainable sales and earnings growth in an environmentwhere the popularity of classic UGG product may be past its peak.”
Several other analysts have also recently commented on the stock. Analysts at Goldman Sachs reiterated a “neutral” rating on shares of Deckers Outdoor in a research note to investors on Friday. They now have a $42.00 price target on the stock, up previously from $33.00. Separately, analysts at Telsey Advisory Group raised their price target on shares of Deckers Outdoor to $46.00 in a research note to investors on Friday. Finally, analysts at Standpoint Research raised their price target on shares of Deckers Outdoor from $55.00 to $65.00 in a research note to investors on Friday. They now have a “buy” rating on the stock.
Five equities research analysts have rated the stock with a buy rating, and nine have issued a hold rating to the stock. Deckers Outdoor presently has an average rating of “overweight” and an average price target of $42.93.
Shares of Deckers Outdoor traded up 15.59% during mid-day trading on Friday, hitting $46.71. Deckers Outdoor has a one year low of $28.53 and a one year high of $80.88. The stock’s 50-day moving average is currently $40.70. The company has a market cap of $1.647 billion and a P/E ratio of 9.95.
Deckers Outdoor last announced its earnings results on Thursday, February 28th. The company reported $2.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.62 by $0.15. The company had revenue of $617.30 million for the quarter, compared to the consensus estimate of $623.02 million. During the same quarter in the previous year, the company posted $3.18 earnings per share. The company’s revenue for the quarter was up 2.2% on a year-over-year basis. Deckers Outdoor has set its Q1 guidance at ($0.12) EPS and its FY13 guidance at +5% (~$3.62) EPS. On average, analysts predict that Deckers Outdoor will post $3.69 earnings per share for the current fiscal year.
Deckers Outdoor Corporation (Deckers) is a designer, producer, marketer, and brand manager of footwear, apparel, and accessories.
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