DECK • Consumer discretionary • Footwear

Deckers Brands

Last closing price

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Valuations

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Methodology

Deckers' footwear business centered on UGG and HOKA generates predictable earnings with strong brand pricing power, though fashion risk creates some volatility. The HOKA running shoe franchise drives consistent double-digit growth offsetting mature UGG sales. Fair value calculations work well when accounting for HOKA's growth trajectory and UGG's stable but mature contribution.

Methodology

Deckers typically trades at PEG ratios between 1.0-2.0x, reflecting solid growth from HOKA's performance running category momentum and brand heat. The company's direct-to-consumer expansion and international growth support premium multiples. PEG works effectively given consistent execution and clear runway for HOKA to become a multi-billion dollar brand.

Methodology

Deckers doesn't pay dividends and reinvests cash flow into brand marketing, retail expansion, and product innovation to maximize brand value. Management focuses on compounding returns through market share gains rather than capital returns. Total return depends entirely on HOKA's continued growth and successful brand portfolio management.

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