The benchmark for US stock market performance, the S&P 500, is comprised of the 500 largest publicly traded companies in the country. To be included, a company must meet specific criteria, including being based in the US, having a market capitalization of at least $8.2 billion, and demonstrating profitability. Deckers Outdoor, a leading outdoor footwear and apparel specialist, recently joined the S&P 500 and has a remarkable track record, with its stock surging 12,870% since its initial public offering 21 years ago.
Deckers’ success can be attributed to its focus on niche offerings with broad appeal, including iconic brands such as Hoka, Ugg, Teva, Ahnu, and Koolabura. The company’s commitment to comfort and performance has driven its international success, generating impressive financial results. In its fiscal 2024, Deckers delivered record sales and profitability, and its fiscal 2025 first-quarter results saw revenue increase by 22% year over year, with diluted earnings per share soaring 87%.
The company’s ability to take market share from larger rivals, sell its popular brands at full retail prices, and expand its international and direct-to-consumer sales are expected to drive continued growth. Additionally, Deckers’ share buyback program has decreased its share count by nearly 34%, giving shareholders a larger stake in the company’s earnings.
Wall Street analysts are overwhelmingly bullish on Deckers, with 16 of 22 analysts rating it a buy or strong buy, and none recommending a sell. The average price target suggests 15% upside, with one analyst predicting potential gains of 45%. Despite its impressive performance, Deckers’ stock remains attractively priced, selling for roughly 30 times earnings, matching the S&P 500’s current multiple.
With analysts expecting EPS of $6.05 for Deckers’ next fiscal year, the stock is selling for less than 26 times next year’s earnings, making it an even more compelling investment opportunity.
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