Bull Of The Day: Deckers

Decker Brands (DECK - Free Report) continues to prove that it belongs among the elite of the niche retailers. This Zacks Rank #1 (Strong Buy) is hitting on all cylinders as it recently raised full year guidance for the second time this year.

Deckers Brands designs manufactures and distributes footwear, apparel and accessories. Its most prominent brand is UGG, but it also owns Koolaburra, HOKA ONE ONE, Teva and Sanuk.

It's products are sold around the world in department and specialty stores as well as company-owned and operated retail stores. Deckers also operates an online store at deckers.com.

Another Beat in the Fiscal Second Quarter

On Oct 24, Deckers reported its fiscal second-quarter results and beat the Zacks Consensus Estimate by $0.37. It reported earnings of $2.71 versus the Zacks Consensus of just $2.34.

It was Deckers' 11th consecutive earnings beat with its last miss in early 2017.

The HOKA ONE ONE brand remains the main driver of outperformance as second-quarter sales jumped 49.9% to $78.1 million from $52.1 million a year ago.

UGG, it's largest brand, grew sales by 2.2% to $404.9 million from $396.3 million in the prior year's quarter.

Teva turned it around from the first quarter, as sales increased 6.7% to $23 million, up from $21.5 million in the same period last year.

Only Sanuk failed to grow sales, as they declined 22.4% to $10.7 million from $13.8 million a year ago.

Wholesale net sales grew 8.7% to $443.5 million compared to $408.0 million for the same period last year.

Direct to consumer (DTC) net sales for the second quarter increased 5.1% to $98.7 million compared to $93.9 million for the prior year. DTC comparable sales increased by 7.2% over the same period last year.

Deckers saw better sales growth domestically than internationally in the quarter. Domestic net sales roes 14.9% to $358 million while international net sales fell 3.2% in the second quarter to $184.2 million.

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Disclosure: I own shares of LULU in my personal portfolio.

Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

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