Hoka and Uggs parent Deckers Outdoor praised as 'one of the strongest names' by Wedbush

By Steve Gelsi

Stock hits all-time high as analyst Tom Nikic hikes Deckers price target on profit view and strong results

Deckers Outdoor Corp.'s stock rallied to an all-time high Friday after the owner of Ugg footwear and Hoka running shoes lifted its profit outlook and drew praise from a Wedbush analyst as "one of the fundamentally strongest names in our coverage."

Deckers Outdoor's (DECK) stock rose by 13% to $1,023, a new record price, according to Dow Jones Market Data. It's the top performer in the S&P 500 SPX.

If the gains hold through the session, it'll be the first record close for the stock since March 21 when it finished trading at $952.94 a share.

Wedbush analyst Tom Nikic said Deckers Outdoor's (DECK) stronger-than-expected fourth-quarter profit has been boosted by growth in its Ugg footwear and Hoka running-shoe units.

Wedbush reiterated an outperform rating on the stock and hiked its price target to $1,030 a share from $1,000 a share.

"We remain very bullish on DECK shares," Nikic said.

Deckers Outdoor's stock rose by 13% tp $1,023, which is an all-time high, according to Dow Jones Market Data. If the gains hold through the session, it'll be the first record close for the stock since March 21 when it finished trading at $952.94 a share.

Given Hoka's growth of 34% in the fourth quarter, and the "incredibly hot" results at Ugg, Nikic said the upped profit guidance from Deckers Outdoor was "conservative."

Deckers Outdoor expects 2024 earnings of $29.50 to $30 a share, up from its earlier view of $26.25 to $26.50 a share.

"At a high level, [Hoka] continues to benefit from increased brand awareness, with the U.S. now at 40% awareness and internationalmarkets just over 20% (an 80% increase year-over-year)," Nikic said.

Although Deckers had a forecast had implied a double-digit drop in fourth-quarter sales at Ugg, the brand ended up growing by a "strong" 15% due to higher pricing, against more clearance sales last year, he said.

Prior to Friday's trades, the stock was up by 35.3% in 2024, outpacing the 10.4% rise by the S&P 500 SPX.

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-24-24 1035ET

Copyright (c) 2024 Dow Jones & Company, Inc.