Citi analyst Paul Lejuez maintained a Buy rating on Deckers Outdoor (DECK – Research Report) today and set a price target of $215.00.
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Paul Lejuez gave his rating based on several factors that highlight Deckers Outdoor’s strong market position and growth potential. During a virtual chat with CFO Steve Fasching, it was noted that the demand for both Hoka and UGG brands remains robust, with no significant macroeconomic concerns impacting their performance. The management is strategically managing the timing of product launches and store openings to ensure sustainable long-term growth, particularly for the Hoka brand, which is experiencing impressive international expansion.
Moreover, the management expressed confidence in their ability to meet strong consumer demand, especially during the holiday season, with popular products like the Tasman and UGG platform mini. While there are potential pressures from foreign exchange, tariffs, and promotional activities anticipated in the coming fiscal year, the company is optimistic about maintaining strong margins due to high full-priced demand. Additionally, Hoka’s brand awareness is growing rapidly, particularly in Europe, suggesting a promising opportunity for further market penetration.