Yahoo Finance If You Invested $1000 in Deckers a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Deckers (DECK) ten years ago? It may not have been easy to hold on to DECK for all that time, but if you did, how much would your investment be worth today?
Deckers' Business In-Depth
With that in mind, let's take a look at Deckers' main business drivers.
Founded in 1973 and headquartered in Goleta, California, Deckers Outdoor Corporation is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities. The company sell products primarily under five proprietary brands — UGG, HOKA, Teva, Sanuk, and Koolaburra.
Its products are sold through specialty domestic retailers, international distributors and directly to end-users through its websites and catalogs. The company sell directly to global consumers through Direct-to-Consumer (DTC) channel, which is comprised of e-commerce websites and retail stores. The brands are sold worldwide, including in the United States, Canada, Europe, Asia-Pacific and Latin America.
The UGG brand has proven to be a highly resilient line of premium footwear, apparel, and accessories with expanded product offerings. The company intends to continue diversifying the brand to drive year-round product sales, through expansion of women’s spring and summer footwear, men’s products, and apparel, home goods, and accessories. The HOKA brand is an authentic, premium line of year-round performance footwear and apparel. The Teva brand’s product line includes sandals, shoes, and boots. The Sanuk brand has manifested into a lifestyle brand with a presence in the relaxed casual shoe and sandal categories. The company's KOOLABURRA brand is a casual footwear fashion line using sheepskin and other plush materials.
(Notes: Zacks identifies fiscal years by the month in which the fiscal year ends, while DECK identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by DECK, will refer to this same fiscal year as being the year before the same year, as identified by Zacks.)
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Deckers a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2013 would be worth $8,866.11, or a 786.61% gain, as of May 5, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 151.56% and gold's return of 34.03% over the same time frame.
Analysts are anticipating more upside for DECK.
Shares of Deckers have risen and outpaced the industry in the past three months. The company put up another spectacular show in third-quarter fiscal 2023. The quarter marked the fifth straight positive sales and earnings surprise. Both the top and bottom lines grew year over year. Strength in HOKA brand contributed to the results. We believe that management’s focus on ramping up inventory, optimizing channel mix to fulfill consumer demand, scaling production to support the growth of brands and implementing targeted price increases should well position Deckers. Management raised fiscal 2023 sales and earnings view. However, adverse foreign exchange rates, inflationary pressures and geopolitical tensions remain concerns. It expects currency headwinds to hurt revenues to the tune of $100 million in fiscal 2023.
The stock is up 7.25% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
