Shares of Deckers (DECK, Financial) rose by 6.39% today, reaching a price of $166.81. This surge is part of a broader increase in footwear stocks, spurred by favorable macroeconomic news including a strong September jobs report and the resolution of a dockworkers' strike.
The job market's strength is evident with 254,000 jobs added, the unemployment rate dropping from 4.2% to 4.1%, and a 4% wage increase, all suggesting robust economic conditions. This has positively impacted consumer discretionary companies like Deckers (DECK, Financial), especially with the holiday shopping season approaching. The resolution of the dock strike is timely, given its impact on the footwear industry, providing further optimism for Deckers’ supply chain.
Deckers (DECK, Financial) has been riding a wave of strong demand for its premium Hoka running shoes, which significantly contributed to the company's exceptional performance. In the second quarter, Deckers reported a remarkable 22% increase in revenue to $825.3 million, with Hoka's revenue climbing 30% to $545.2 million.
Looking at the financial metrics, Deckers (DECK, Financial) has a market capitalization of $25.43 billion and a P/E ratio of 31.88. While the stock shows strong financial strength, with a Piotroski F-Score of 8, it is currently deemed "Significantly Overvalued" based on its GF Value of $107.29. The operating margin is expanding, with a current value of 22.3%, highlighting Deckers' profitability, supported by a robust Altman Z-score of 15.45, suggesting financial stability.
Despite its strong performance, with a 49.73% increase year-to-date and a 95.55% rise over the past 52 weeks, caution may be warranted considering the GF Value assessment. Deckers (DECK, Financial) continues to show strong financial fundamentals, making it a significant player in the consumer cyclical sector.
