Deckers Outdoor (DECK) Restarts Buybacks, PT Raised to $436 at Jefferies

Jefferies analyst Janine Stichter raised the price target on Deckers Outdoor (NYSE: DECK) to $436.00 (from $400.00) after UGG sales rose 53% to $300.5M, well-ahead of cons. of 19% to $234M. HOKA sales rose 74%, better than the consensus 46% growth, with notable growth internationally. HOKA is targeted to grow 40% in F'22 to over $800M, on top of >60% in F'23. After indicating in March that the company planned to resume repurchase activity, DECK bought back $99M in shares during the quarter.

The analyst reiterated a Buy rating, stating "F'4Q marked another quarter of significant top-line upside and strong margins. While smart, strategic investments should put pressure on F'22 OMs, this is being more than offset by a better than expected top-line outlook, driven by both UGG and HOKA. We see catalysts ahead for both brands, including benefits from marketing investments, international expansion, and new product categories".

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