Why Deckers Outdoor Stock Hit a New All-Time High Today Above $1,000 Per Share
Shares of Deckers Outdoor (NYSE: DECK) have never been higher than they are today. The stock jumped past $1,000 per share this morning after the company released financial results for its fiscal fourth quarter of 2024. As of 9:50 a.m. ET Friday, Deckers stock was up about 12%.
An unstoppable shoe stock
Over the last five years, Deckers stock is up close to 600%, handily outpacing the roughly 87% return for the S&P 500. In short, the company's shoes are resonating with consumers, particularly its Hoka and Ugg brands. And these trends continued in the fourth quarter with net sales jumping 21% year over year to nearly $1 billion.
Deckers' fourth-quarter sales were particularly strong. But all of its fiscal 2024 was good, with full-year net sales rising 18% compared to fiscal 2023. And management doesn't believe this is the high point for its business. It's guiding for another increase of 10% in fiscal 2025, showing its growth story still has more chapters.
Equally impressive as its top-line growth is its profit margin improvement. In its fiscal 2024, its gross margin improved from about 50% in fiscal 2023 to almost 56%. And this big jump coupled with operational discipline yielded operating income of over $900 million. In short, it's a good time for Deckers.
What it means for investors
After today's jump in price, Deckers has a market cap of $26 billion. That means it trades for about 28 times its operating income. That's not a great price but not outrageously expensive, either, considering its ongoing growth.
Therefore, I'd say that Deckers stock is fairly valued today. And given the positive trends in the business, I would continue confidently holding shares if I owned them.
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Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
