Deckers' Stock Surges Past $1,000 as Hoka Sales Climb and Analysts Praise Performance

Deckers Outdoor Corp. and Macro Bank recently made headlines by exceeding their quarterly earnings expectations, marking an impressive performance streak for both companies. Deckers, a prominent footwear and apparel brand known for its high-performance outdoor gear, saw its stock surge by approximately 14% following the release of its fiscal fourth quarter earnings. The company reported a Q4 EPS of $4.95, dramatically outperforming the Zacks Consensus estimate of $2.82 per share by 75%, and representing a significant increase from $3.46 a share in the same quarter the previous year. This marked the tenth consecutive quarter that Deckers surpassed earnings expectations, boasting an average earnings surprise of 42.82% over its last four reports.

Macro Bank, recognized for having one of the most extensive private-branch networks among multi-service banks in Argentina, also saw its stock rise by about 2% after reporting a Q4 EPS of $5.02. This result shattered the expectations of $2.19 a share by 129%, with Q4 earnings experiencing a 382% surge from $1.04 a share year-over-year. Despite its impressive performance, Macro Bank's stock is considered attractively valued, trading at just 6.2X forward earnings, well below the Zacks Banks-Foreign Industry average of 9.1X.

The remarkable earnings results have significantly impacted both companies' stock performance. Deckers Outdoor has seen its stock escalate by +53% year to date, while Macro Bank shares have astonishingly jumped +104%. Over the past year, Macro Bank's stock surged by +232%, surpassing even Nvidia's +176%, with Deckers shares experiencing a +127% uptick.

Deckers Outdoor's success continued as its stock hit a new all-time high, surpassing $1,000 per share, an event driven by record sales and soaring profits. The company's fiscal fourth-quarter report showcased net sales jumping 21% year over year to nearly $1 billion, with full-year net sales for fiscal 2024 increasing by 18% compared to fiscal 2023. Deckers' management anticipates this momentum to continue, projecting a 10% increase in sales for fiscal 2025. Notably, Deckers' gross margin improved from 50% in fiscal 2023 to almost 56% in fiscal 2024, leading to operating income of over $900 million.

Deckers Outdoor's market cap reached $26 billion, trading at about 28 times its operating income, indicating a fair valuation given its continued growth. These developments highlight the company's strong market position and the consumer resonance of its Hoka and Ugg brands. Investors are encouraged by these positive trends, suggesting confidence in holding Deckers' shares moving forward.