Why Deckers Outdoor (DECK) Stock Is Higher Today

NEW YORK (TheStreet) --Shares of Deckers Outdoor Corp. (DECK) are higher 5.42% to $82.72 on Friday after the company released its report for the three month transition period that ended March 31, 2014.

The company, which designs and develops footwear for high performance outdoor activities, said it exceeded revenue estimates and posted loses that were lower than analysts expected.

Diluted loss per share was $0.08, versus the earnings per share of $0.03 for the same period in 2013.

UGG Brand sales increased 15.8% to $197.6 million compared to $170.6 million reported in 2013.

 

Revenue grew 11.7% to $294.7 million, compared to the same three month period in 2013 when the company reported $263.76 million. Deckers Outdoor beat its own guidance estimate of a 6% growth in revenue.

Deckers Outdoor recently changed its fiscal year to March 31 from December 31, and as a result is referring to the recent quarter as a three month transition period. 

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TheStreet Ratings team rates DECKERS OUTDOOR CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DECKERS OUTDOOR CORP (DECK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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