Source: shutterstock.com/Piotr Swat
Shares of Deckers Outdoor (NYSE:DECK) stock are running higher after the footwear and apparel company reported its second-quarter fiscal year 2024 earnings. Deckers, which produces the popular Hoka sneakers and Ugg boots as well as Teva sandals, reported revenue of $1.092 billion, up by 25% year-over-year (YOY) and beating the analyst estimate for $960.5 million. Of the revenue, Hoka accounted for $424 million, up by 27.3% YOY, while Ugg added $610.5 million, up by 28.1% YOY. On the other end, Teva revenue was $21.5 million, down by 28.4%.
“Our team’s ability to deliver compelling products that create emotional connections with consumers through engaging marketing campaigns, differentiates our brands in a competitive marketplace,” said President and CEO Dave Powers. “This, paired with our strategic approach to marketplace management, led by our DTC channel, remains paramount to the success of our brands and Company.”
5 Investors Betting Big on DECK Stock
Revenue wasn’t the only bright spot in Deckers’ earnings. Gross margin grew to 53.4% from 48.2%, while diluted EPS was $6.82, up from $3.80 and beating the analyst estimate for $4.43 per share. As of Sept. 30, the company had $823.1 million in cash and equivalents, almost doubling its figure of $419.3 million a year ago. Inventory as of Sept. 30 clocked in at $726.3 million, down from $925 million the same time last year.
For the cherry on top, Deckers still has $1.146 billion in its stock repurchase program and repurchased $185.5 million worth of shares during the second fiscal quarter. The company also raised its fiscal 2024 revenue guidance to $4.025 billion from $3.98 billion, while its gross margin is expected to be between 52.5% and 53%. Deckers’ full-year diluted EPS is expected to be between $22.90 and $23.25.
During the second quarter, 13F filers reported owning 24.96 million shares of DECK stock, down slightly from 25.4 million shares last quarter. Hedge fund 13F filers reported owning 5.36 million shares, down by 9.23% from 5.91 million shares during the prior quarter. Still, the total number of 13F filers with a stake in DECK increased to 572 from 532.
With that in mind, let’s take a look at the largest institutional shareholders of DECK:
- FMR: 3.91 million shares. FMR sold off 29,862 shares during Q2.
- BlackRock (NYSE:BLK): 2.95 million shares. BlackRock acquired 510,292 shares during Q2.
- Vanguard: 2.47 million shares. Vanguard sold off 17,402 shares during Q2.
- State Street (NYSE:STT): 838,595 shares. State Street acquired 109,341 shares during Q2.
- Wellington Management Group: 699,800 shares. Wellington acquired 146,208 shares during Q2.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.