On Tuesday, Piper Sandler maintained a Neutral stance on Deckers Outdoor (NYSE: NYSE:DECK) stock, with a consistent price target of $870.00. In a recent evaluation, the firm highlighted the performance of the company's HOKA brand, which retained its position as the third most favored athletic footwear brand among Upper-Income (UI) teens.
HOKA saw a growth of 65 basis points (bps) in mindshare sequentially and an increase of 280 bps year-over-year. The brand experienced a notable 315 bps gain in share among UI female teens in the athletic footwear category, although it saw a 55 bps decline with UI male teens.
HOKA was ranked as the 16th overall favorite footwear brand, a slight drop from the 13th position in the fall, but an improvement from the 19th spot last spring. Deckers' other prominent brand, UGG, climbed to the sixth position among favorite footwear brands, up from seventh last spring.
UGG's popularity was particularly strong among female teens, securing the fourth spot in both the overall and UI segments and the third among Affluent-Income (AI) female teens.
UGG also emerged as a significant fashion statement, being the second top fashion trend for UI female teens. However, it was also noted as the tenth trend that is considered "on its way out" among female teens. This mixed reception indicates varying levels of engagement with the brand across different demographics.
Piper Sandler's assessment underlines the dynamic preferences in the teen footwear market and Deckers' position within it. The company's brands, HOKA and UGG, continue to perform well among certain segments, particularly UI and AI female teens, despite the shifts in rankings and trends over recent seasons. The maintained Neutral rating and price target reflect a steady outlook for Deckers Outdoor's stock performance in the market.
InvestingPro Insights
Deckers Outdoor (NYSE: DECK) has demonstrated a solid financial footing, as highlighted by key metrics from InvestingPro. With a strong market capitalization of $22.81 billion and a robust revenue growth of 15.34% over the last twelve months as of Q1 2023, Deckers shows a compelling growth narrative. The company's gross profit margin stands at a healthy 54.43%, which suggests efficient operations and a strong pricing power. Additionally, the impressive 99.12% one-year price total return indicates that investors have been rewarded handsomely for their confidence in Deckers.
When it comes to InvestingPro Tips, two standout points for Deckers include the company holding more cash than debt on its balance sheet, which provides financial stability and flexibility, and the fact that cash flows can sufficiently cover interest payments, ensuring the company's ability to service its debt without strain. For those interested in deeper analysis, there are 15 additional InvestingPro Tips available, which can be explored for a more comprehensive understanding of Deckers' financial health and market position. To access these insights and benefit from an exclusive offer, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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