Deckers (DECK) to Report Q4 Earnings: What's in the Cards?

Deckers Outdoor Corporation DECK is likely to register an increase in the top line from the last fiscal year’s quarterly reading when it reports fourth-quarter fiscal 2022 earnings on May 19, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $644.2 million, indicating an improvement of 14.8% from the prior fiscal year’s quarterly reported figure.

The bottom line of this designer, marketer and distributor of footwear, apparel and accessories is expected to rise from the earlier fiscal year’s quarterly tally. Although the Zacks Consensus Estimate for earnings per share in the fiscal fourth quarter has been stable at $1.35 over the past 30 days, the same suggests growth of 14.4% from the last fiscal year’s quarterly level.

For fiscal 2022, the consensus mark for revenues is pegged at $2.96 billion, indicating an improvement of 16.1% from the prior fiscal year’s reported figure. The Zacks Consensus Estimate for the full-fiscal earnings has been stable at $15.09 per share over the past 30 days, indicating growth of 12% from the last fiscal year’s actuals.

In the last reported quarter, this Goleta, CA-based player’s bottom line missed the Zacks Consensus Estimate by 0.8%.

Key Factors to Note

Deckers’ performance got the fiscal fourth quarter is likely to have benefited from the acceleration of omni-channel capabilities, and customer-centric product and marketing strategies. DECK’s focus on expanding brand assortments, introducing an innovative line of products and enhancing direct-to-consumer business contribution might have been tailwinds. Additional production lines in new geographical locations and strategic price increases of products might have supported the top line in the quarter under review.

Keeping pace with the changing trends, Deckers is constantly developing its e-commerce portal to capture incremental sales. DECK has been making substantial investments for a while to strengthen its online presence and enhance customers’ shopping experience. Management is focused on ramping up inventory in response to supply-chain bottlenecks, optimizing channel mix to fulfill consumer demand and scaling production to support brand growth.

On its last earnings call, Deckers envisioned fiscal 2022 net sales of $3.03-$3.06 billion, suggesting a sharp increase of 19-20% from fiscal 2021’s reported figure. It anticipated earnings of $14.50-$15.15 per share for the full fiscal, up from $13.47 reported last fiscal year.

While the aforementioned factors raise optimism, we cannot rule out the supply-chain headwinds and cost pressures with respect to the container shortages, port congestion and trucking scarcity that might have caused shipping delays and greater usage of air freight.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Deckers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Deckers Outdoor Corporation Price and EPS Surprise

Deckers Outdoor Corporation Price and EPS Surprise

Deckers Outdoor Corporation price-eps-surprise | Deckers Outdoor Corporation Quote

Although Deckers currently has a Zacks Rank #3, its Earnings ESP of 0.00% in the combination makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Costco COST has an Earnings ESP of +1.90% and a Zacks Rank #2, currently. COST is likely to register an increase in the bottom line from the last fiscal year’s quarterly level when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased two cents to $3.04 per share in the past 30 days, indicating an improvement of 10.6% from the earlier fiscal year’s quarterly tally. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco’s top line is expected to rise from the prior fiscal year’s quarterly reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.8 billion, which suggests an increase of 14.3% from the number reported in the prior fiscal year’s quarter. COST delivered an earnings beat of 13.3%, on average, in the trailing four quarters.

PVH Corp. PVH has an Earnings ESP of +2.32% and a Zacks Rank of 3, currently. PVH is likely to register an increase in the top line from the last fiscal year’s quarterly reported figure when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.11 billion, which suggests a rise of 1.9% from the figure reported in the prior fiscal year’s quarter.

PVH Corp.’s bottom line is expected to decline from the prior fiscal year’s quarterly reported figure. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.58 per share in the past 30 days, indicating a plunge from $1.92 registered in the last fiscal year’s quarter. PVH delivered an earnings beat of 83.8%, on average, in the trailing four quarters.

lululemon athletica LULU currently has an Earnings ESP of +0.28% and a Zacks Rank of 3. LULU is likely to register an increase in the bottom line from the prior fiscal year’s quarterly reported figure when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has moved 8.5% north to $1.40 per share, suggesting 20.7% growth from the prior fiscal year’s quarterly reported number.

lululemon athletica’s top line is expected to rise from the prior fiscal year’s quarterly reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.54 billion, which suggests a rise of 25.7% from the figure reported in the prior fiscal year’s quarter. LULU delivered an earnings beat of 20.9%, on average, in the trailing four quarters.

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