Investment Opportunity: The Standout Growth Stock Perfect for a $1,000 Investment Today
Deckers Outdoor Corporation, the company behind popular brands like Hoka and Ugg, has reported impressive results in its first-quarter earnings. The company's total revenue for the quarter reached $964.5 million, marking a 16.9% increase compared to estimates.
International sales soared by 49.7%, reaching $463.3 million, while domestic sales decreased by 2.8%, amounting to $501.3 million. Despite the slight dip in domestic sales, the company's core brands, Hoka and Ugg, performed exceptionally well.
Hoka, one of Deckers Outdoor Corporation's core brands, saw a 19.8% increase in sales for the first quarter, reaching $653.1 million. Ugg, another core brand, reported a 18.9% increase in sales, amounting to $265.1 million. The three main franchises of Hoka continue to gain market share.
Deckers Outdoor Corporation's management expects mid-teens growth for Hoka and mid-single-digit growth for Ugg for the rest of the year. The company's management also expects the stock to continue topping estimates over the rest of the year.
However, the company's stock fell more than 50% from its peak in January due to fears around tariffs and slowing growth. Deckers Outdoor Corporation expects a $185 million impact to cost of goods sold from tariffs. Fears around tariffs and slowing growth now seem to be overblown following better-than-expected results in the company's first-quarter earnings report and a cooling off of the tariff situation.
Deckers Outdoor Corporation's stock is currently trading at $120.36, a decrease of 2.87%. Despite the recent dip, the company's stock is up more than 1,000% over the last decade, reflecting its strong track record in the apparel and footwear sector.
The gross margin for Deckers Outdoor Corporation is 56.20%, and the company has a market cap of $18 billion. The 52-week range for Deckers Outdoor Corporation's stock is $93.72 - $223.98. If Deckers Outdoor Corporation can continue to top estimates, the stock could soar as it recoups its earlier losses.
It's worth noting that The Motley Fool's Stock Advisor analyst team did not include Deckers Outdoor Corporation in their list of the 10 best stocks for investors to buy now. However, the company's impressive performance in the first quarter could potentially change this in the future.
Deckers Outdoor, the company that manufactures Hoka running shoes and Ugg sheepskin boots, was founded by Brian Smith, who started the UGG brand in the late 1970s and later partnered with Deckers Brands in 1995. The founder of Deckers Outdoor itself is not explicitly named in the search results, but Brian Smith is credited with founding UGG before its integration with Deckers.
As Deckers Outdoor Corporation continues to expand its distribution in Europe, investors will be closely watching the company's performance in the coming quarters. With its strong brands and impressive growth, Deckers Outdoor Corporation remains a significant player in the apparel and footwear sector.
