Footwear and apparel conglomerate Deckers (NYSE: DECK) will be reporting results this Thursday after market close. Here’s what to expect.
Deckers beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $1.02 billion, up 6.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ EPS estimates.
Is Deckers a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Deckers’s revenue to grow 9.1% year on year to $900.3 million, slowing from the 22.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Deckers has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 6.1% on average.
Looking at Deckers’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nike’s revenues decreased 12% year on year, beating analysts’ expectations by 3.4%, and Levi's reported revenues up 6.4%, topping estimates by 5.8%. Nike traded up 15.2% following the results while Levi's was also up 11.1%.
Read our full analysis of Nike’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 13.9% on average over the last month. Deckers is up 5.5% during the same time and is heading into earnings with an average analyst price target of $122.04 (compared to the current share price of $105.99).
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