5. Deckers Outdoor (DECK) is a designer, producer, marketer, and brand manager of footwear and accessories. It sells products under two brands: UGG and Teva. Other brands include Simple, TSUBO and Ahnu.
Of the 15 analysts covering the stock, 80% recommend buying and the rest rate a hold. There are no sell ratings on the stock. Its average 12-month price target is $113.27, which is 28.6% higher than the current price, as per a Bloomberg consensus.
For the second quarter of 2011, DECK reported 12.5% increase in net sales to $154.2 million from $137.1 million in the year-ago quarter. UGG sales were up 8%, while Teva sales escalated 29.1% for the quarter. Retail sales jumped 102.2% to $20.1 million, while same-store sales were up 23.6%.The company recently signed a purchase and sale agreement for acquiring nearly 14 acres in Santa Barbara County in California for $20.4 million for its new headquarters. For the third quarter, the company expects revenue to increase by almost 38% and diluted earnings per share by 22% over the 2010 levels. Revenue for the fourth quarter is projected to rise 22%, while diluted earnings per share are seen growing 36%. For full year 2011, revenue is now expected to increase almost 26% over 2010 levels compared to the earlier guidance of 21%. Meanwhile, the newly acquired Sanuk brand is expected to generate sales in the low $20 million range in the second half of the year. Full-year diluted earnings per share are seen increasing 17% from 2010 levels, vs. the previous view of 13%.