What Happened?

Shares of footwear and apparel conglomerate Deckers (NYSE:DECK) jumped 6% in the afternoon session after Needham analyst initiated coverage on the stock with a Buy rating and added it to its conviction list. The analyst named Deckers "one of the highest-quality companies in our coverage," citing the impressive track record, strong leadership and balance sheet. The analyst added that guidance for the rest of fiscal 2025 seems conservative and highlighted the potential for shares to "continue grinding higher."

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What The Market Is Telling Us

Deckers’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 28 days ago when the stock gained 14.7% on the news that the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' constant currency revenue expectations. Its revenue also outperformed Wall Street's estimates, benefiting from strong consumer demand for its HOKA and UGG brands. Moving on, the company also raised its full-year guidance for revenue and EPS, capping off a great quarter. 

Overall, it was an impressive quarter for the company. Skechers, a footwear peer, also reported strong results, suggesting consumer demand for athletic and casual footwear is holding up despite some mixed signals in spend in other categories.

Deckers is up 71.7% since the beginning of the year, and at $192.93 per share, has set a new 52-week high. Investors who bought $1,000 worth of Deckers’s shares 5 years ago would now be looking at an investment worth $7,255.

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