DECK

Deckers Outdoor stock has had a weak year in the market, yet the valuation checks currently point to a very different story, with both an intrinsic value estimate and market multiples suggesting the shares may be pricing in a lot of caution. Over the past 12 months, Deckers Outdoor is down 31.2%, which means recent sentiment has been firmly against the stock despite its longer term track record. The company’s ability to keep converting its branded footwear and apparel demand into steady cash flow can support the current valuation, while any pressure on margins or weaker consumer spending would work against that. Across the broader checks, Deckers Outdoor screens as leaning cheap, with a high value score of 5 out of 6, alongside a Discounted Cash Flow (DCF) estimate that sits about 43.3% above the recent share price and market multiples that also indicate undervaluation. The issue now is whether Deckers Outdoor’s current share price already reflects a cautious outlook or if the intrinsic value estimate and multiples are flagging a potential gap that investors should pay attention to. Scan for other stocks where the market may be pricing in too much caution by reviewing our hand picked list of 50 high quality undervalued stocks. The Discounted Cash Flow (DCF) approach used here projects the cash that Deckers Outdoor can generate for shareholders and then converts those future dollars into today’s terms. Deckers Outdoor has reported latest twelve month free cash flow of about $1.10b, which the 2 Stage Free Cash Flow to Equity model treats as growing over time rather than shrinking. Based on those assumptions, the model points to an estimated intrinsic value of about $149 per share. Compared with the recent share price, that intrinsic value suggests the stock is 43.3% undervalued. This gap indicates that the market is pricing Deckers Outdoor more cautiously than its current cash generation and projected cash flows might imply. As always, the comfort level with this DCF result depends on how confident you are that free cash flow can be maintained at or near recent levels over the long term. On this DCF view, Deckers Outdoor stock appears undervalued relative to the cash flows currently being priced in. Our Discounted Cash Flow (DCF) analysis suggests Deckers Outdoor is undervalued by 43.3%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Deckers Outdoor. P/E is a useful lens for Deckers Outdoor because earnings are a key driver for established branded consumer companies. Deckers Outdoor currently trades on a P/E of about 11.3x, which is below both the Luxury industry average of about 15.9x and the peer group average of about 16.3x. The tailored fair P/E ratio for Deckers Outdoor is estimated at around 17.7x. That is meaningfully higher than the current 11.3x multiple, which suggests the market is applying a sizeable discount relative to what this framework implies based on factors like its sector, profitability profile and risk. If earnings hold near current levels, this gap points to a stock that is priced cautiously compared with both its industry and this fair multiple. On the P/E lens, Deckers Outdoor stock appears undervalued compared with both peers and the model’s fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Deckers Outdoor pick up where this valuation puzzle leaves off. They spell out which assumptions on growth, margins and earnings would need to hold for the stock to appear materially higher or lower than today’s price. Each Narrative ties a fair value estimate to a specific scenario for Deckers Outdoor's potential catalysts and risks, so you can track over time which story appears to be playing out on the Community page. One of the top community narratives on Deckers Outdoor: 31% undervalued Read one of the top narratives on Deckers Outdoor Do you think there's more to the story for Deckers Outdoor? Head over to our Community to see what others are saying! Deckers Outdoor screens as undervalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and on earnings multiples, which is a rare level of agreement between methods. The market appears to be pricing in a cautious path for cash flows and earnings compared with what these models imply. With the broader valuation checks also leaning supportive, the key question is whether Deckers Outdoor can keep converting its brand strength into resilient cash generation and margins. That execution risk, and whether sentiment eventually allows the P/E multiple to move closer to the implied fair range, is what will matter most from here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DECK. 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American Eagle Outfitters, Inc. AEO is expected to register growth in its top line when it reports second-quarter fiscal 2026 results on Sept. 9, after market close. The Zacks Consensus Estimate for revenues is pegged at $1.37 billion, which indicates a rise of 6.5% from the year-ago figure. American Eagle Outfitters, Inc. price-consensus-eps-surprise-chart | American Eagle Outfitters, Inc. Quote The consensus estimate for quarterly earnings is pegged at 21 cents per share, indicating a 53.3% decline from the year-ago quarter's number. However, the consensus estimate for earnings has remained stable in the past 30 days.The company’s earnings beat the consensus estimate by 27.3% in the last reported quarter. AEO delivered an earnings surprise of 48.6% in the trailing four quarters, on average. AEO’s second-quarter performance is likely to have benefited from continued momentum at Aerie and OFFLINE, supported by healthy demand across product categories and selling channels. Aerie’s strength appears to be broad-based, reflecting compelling assortments, stronger brand visibility and deep customer engagement. The brand’s head-to-toe merchandising approach across intimates, sleepwear and apparel has also encouraged customers to build complete outfits, while disciplined promotions and targeted pricing strategies have supported healthier selling trends. OFFLINE has remained another important growth driver, with customers responding well to fresh silhouettes, coordinated sets, new fabrications and curated product drops.At the American Eagle brand, improving trends in several categories may also have supported the quarter. Men’s apparel has maintained momentum across tops and bottoms, while women’s fashion tops and tees have continued to attract customers. Management also noted encouraging signs of improvement in the women’s business as the quarter progressed, aided by quick merchandising adjustments and a sharper focus on styles and fits showing stronger demand. The company’s ability to chase winning products and introduce fresh assortments could have helped it respond more effectively to changing customer preferences during the summer selling period.AEO’s elevated marketing efforts and customer-engagement initiatives are another factor likely to have aided demand. Across American Eagle and Aerie, the company has been investing in campaigns, influencer programs, creator communities and entertainment partnerships designed to strengthen brand awareness and attract both new and existing customers. American Eagle has also been shifting its focus toward improving conversion, while digital engagement showed encouraging momentum heading into the quarter. Meanwhile, the opening of the company’s new West Coast distribution center should support better inventory placement and fulfillment flexibility, strengthening AEO’s ability to serve demand across stores and digital channels.Nevertheless, several pressures may have weighed on second-quarter profitability. American Eagle entered the period with softness in women’s bottoms, particularly denim, and management expected additional markdown activity as it worked to clear less productive merchandise and improve inventory quality ahead of the key back-to-school season. Tariffs also represented a meaningful cost headwind compared with the prior year, while continued spending on advertising was expected to increase operating expenses. In addition, management acknowledged a competitive and fluid retail environment, making disciplined execution, product relevance and effective promotional management especially important for preserving margins.Our model predicts second-quarter fiscal 2026 total revenues to increase 6.2% year over year. We expect sales for the American Eagle brand to decline 1%. Sales for the Aerie brand are expected to increase by 19.4%. Our proven model does not conclusively predict an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.American Eagle currently has an Earnings ESP of -4.00% and a Zacks Rank of 2. You can uncover the best stocks before they’re reported with our Earnings ESP Filter. With a forward 12-month price-to-earnings ratio of 9.55X, below the high level of 18.29X and the Retail - Apparel and Shoes industry’s average of 13.05X, the stock offers compelling value for investors seeking exposure to the sector. Image Source: Zacks Investment Research AEO stock has lost 21.9% in the past six months compared with the industry’s 17.5% decline. Image Source: Zacks Investment Research Here are three companies, which, according to our model, have the right combination of elements to post an earnings beat this season:Victoria's Secret VSXY has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.Costco Wholesale Corporation COST currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $94.46 billion, indicating a 9.6% rise from the figure reported in the prior-year quarter.The consensus estimate for Costco’s earnings is pegged at $6.51 per share, implying 10.9% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1%, on average.Deckers Outdoors Corporation DECK currently has an Earnings ESP of +1.60% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $1.5 billion, indicating a 5.6% rise from the figure reported in the prior-year quarter.The consensus estimate for Costco’s earnings is pegged at $1.8 per share, implying a 1.1% decline from the year-ago quarter. DECK delivered a trailing four-quarter earnings surprise of 15.2%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Victoria's Secret & Co. (VSXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wolverine World Wide, Inc. WWW reported solid second-quarter 2026 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. Revenues and earnings increased year over year.The company continued to benefit from strong momentum at its two largest brands, Merrell and Saucony, while progress at Wolverine and Sweaty Betty supported broader portfolio improvement. Management highlighted stronger brand execution, increased consumer demand and market share gains across key categories. The company raised its 2026 outlook, reflecting confidence in its growth trajectory and operating performance. As a result, shares of WWW increased 10% yesterday. Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote The company posted adjusted earnings of 40 cents a share, which beat the Zacks Consensus Estimate of 38 cents by 5.3%. The figure improved 14.3% from adjusted earnings of 35 cents in the prior-year quarter. At constant currency, earnings per share were 38 cents, up 8.6% from 35 cents in the prior-year quarter.Total revenues were $506.4 million, up 6.8% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate of $502 million by 0.8%. Growth was led by Merrell and Saucony, while wholesale revenues advanced 8% on a constant-currency basis.Direct-to-consumer revenues were $111.7 million, essentially flat year over year. WWW’s international business revenues increased 10.9% to $277.2 million.Regarding segments, Active Group revenues increased 9.3% year over year to $388.4 million. However, the segment’s revenues lagged the Zacks Consensus Estimate of $390.8 million. Work Group revenues declined 1.6% to $105.8 million and beat the consensus estimate of $105.7 million. Revenues of the Other segment increased 8.9% to $12.2 million. Also, the metric surpassed the consensus estimate of $11.2 million. Merrell revenues increased 11.1% year over year to $175.5 million or 10.3% on a constant-currency basis. Management cited healthy sell-through in core franchises, including the Moab 3, Moab Speed 2 and Agility Peak 6, along with strong international gains.Saucony revenues increased 9.9% to $158.6 million. The brand gained market share at U.S. run specialty and continued to build momentum across performance and lifestyle categories.Wolverine revenues climbed 6.6% to $39.6 million, supported by stronger key franchises and marketplace improvements.Sweaty Betty revenues declined 2.4% to $40.3 million amid the planned reset of its U.S. business, though management said the brand grew about 3% excluding that reset.The Zacks Consensus Estimate for revenues was pegged at $170.5 million for Merrell, $170.3 million for Saucony, $36.4 million for Wolverine and $39.2 million for Sweaty Betty. Gross profit was $235.3 million, up 5% year over year. Gross margin was 46.5%, down 70 basis points from 47.2% in the prior-year quarter. The decline primarily reflected the impact of higher U.S. tariffs, partially offset by price increases and other tariff mitigation initiatives.Adjusted operating costs increased 2.4% year over year to $184.9 million. As a percentage of revenues, adjusted operating expenses leveraged 40 basis points year over year.Adjusted operating profit increased 14.3% year over year to approximately $50.6 million, while the adjusted operating margin improved 80 basis points to 10%. Cash and cash equivalents were $158.5 million at quarter-end, compared with $141 million a year earlier. Net debt fell 22% year over year to $443 million, while long-term debt stood at $547.1 million.Inventory declined 17% year over year to $269.3 million. For the first half of fiscal 2026, operating cash flow was $3.4 million compared with an outflow of $39.2 million in the prior-year period. For the third quarter, revenues are projected to be between $495 million and $500 million, indicating approximately 5.8% reported growth at the midpoint versus the prior-year quarter. On a constant-currency basis, revenues are expected to increase 6.5% at the midpoint. The Active Group is anticipated to deliver high-single-digit growth, while the Work Group is expected to remain approximately flat year over year.The third-quarter gross margin is expected to be approximately 47.4%, down 10 basis points from the prior year. The outlook reflects an estimated unmitigated tariff impact of 180 basis points and a modest headwind from higher oil prices on freight costs. These pressures are expected to be largely offset by mitigation actions and other business initiatives.The adjusted operating margin is projected to be approximately 10.4%, an improvement of 130 basis points year over year, as revenue growth and disciplined cost management are expected to more than offset the impact of higher tariffs and elevated oil prices on gross margin. As a result, adjusted earnings per share are expected to range from 42 cents to 45 cents compared with 36 cents in the prior-year quarter. Wolverine Worldwide raised its 2026 revenue outlook to $1.98-$2 billion from the previous range of $1.96-$1.985 billion. The updated guidance represents reported revenue growth of approximately 6.2% at the midpoint. The company maintained its foreign currency assumption of an estimated $14 million benefit compared with the prior year.Fiscal 2025 included a 53rd week in the fourth quarter, which contributed approximately 70 basis points to full-year revenue growth, primarily within the direct-to-consumer business. Excluding the 53rd week and on a constant-currency basis, WWW expects revenues to increase approximately 6.1% at the midpoint. On a constant-currency basis, Active Group revenues are expected to increase at a high-single-digit rate, up from the prior mid-single-digit growth outlook. Work Group revenues are expected to remain approximately flat compared with 2025.At the brand level, the company raised its Saucony growth outlook to the mid-teens compared with the high end of its previous low- to mid-teens range. The company continues to expect Merrell revenues to grow at a mid-single-digit rate, while Sweaty Betty is expected to decline at a low-single-digit rate and Wolverine is projected to remain approximately flat compared with 2025.Gross margin is expected to be approximately 46.9%, up from the prior outlook of 46.4%. The improvement primarily reflects stronger marketplace execution, supply chain efficiencies and modestly lower tariffs. The updated guidance assumes existing tariff rates remain in place for the balance of 2026, reducing the estimated unmitigated tariff impact by approximately $2 million compared with the previous outlook. The guidance excludes any refund related to the $36 million of IEEPA tariffs previously paid. Adjusted operating margin is projected to be approximately 9.9%, compared with the prior outlook of 9.5%. The improvement reflects higher gross margin and meaningful operating leverage, partly offset by strategic investments in brands and key capabilities. As a result, adjusted earnings per share are expected to range from $1.55 to $1.65 compared with the previous range of $1.43-$1.58. WWW raised its operating free cash flow outlook to $115-$130 million from $105-$120 million previously. Capital expenditures are expected to remain approximately $20 million. WWW Stock Past Three-Month Performance Image Source: Zacks Investment Research Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 30.3% compared with the industry’s 1.3% growth. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 57.9% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Deckers Outdoor Corporation DECK is a designer, producer and brand manager of footwear, apparel and accessories for outdoor sports, performance activities and lifestyle use. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales suggests growth of 6.8% and 7.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 15.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

On Holding AG ONON reported second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, adjusted earnings improved and net sales increased, supported by strong direct-to-consumer (“DTC”) growth, robust Asia-Pacific momentum and continued apparel strength. The company raised its 2026 gross margin outlook while maintaining its adjusted EBITDA margin guidance.ONON reported adjusted earnings of 35 cents per share, missing the Zacks Consensus Estimate of 44 cents by 20.5%. Net sales came in at CHF 850.3 million, below the consensus estimate of CHF 1,114 million by 23.7%. Net sales increased 13.5% year over year and rose 21.6% on a constant-currency basis. Adjusted EPS Class A (CHF) improved to 35 cents from a loss of 9 cents in the year-ago quarter. On Holding AG price-consensus-eps-surprise-chart | On Holding AG Quote The company continued to witness strong momentum in its DTC business. DTC revenues increased 26% year over year to CHF 388.4 million, or 34.3% on a constant-currency basis, with growth exceeding expectations across every region. The DTC business reached a second-quarter high of 45.7% of total net sales, supported by continued strength across On's own retail stores and expanding global store network.Wholesale revenues increased 4.8% year over year to CHF 461.9 million, or 12.7% on a constant-currency basis. The company continued to emphasize disciplined full-price selling and premium brand positioning amid a promotional marketplace.Global brand awareness rose to 30%, while consumers under age 34 represented more than one-third of the customer base. On Holding recently opened its first stores in São Paulo and Copenhagen, extending its network of premium retail locations. Gross profit increased 20.6% year over year to CHF 555.7 million. Gross margin expanded 390 basis points to 65.4% from 61.5%, despite the company fully absorbing higher U.S. import tariffs and excluding any tariff refunds. Selling, general and administrative expenses increased to CHF 436.3 million from CHF 368 million. Adjusted EBITDA increased 23.5% year over year to CHF 168.1 million, while adjusted EBITDA margin expanded 160 basis points to 19.8% from 18.2%. Net income was CHF 105 million against a loss of CHF 40.9 million in the year-ago quarter, with net income margin improving to 12.3% from negative 5.5%. Adjusted net income was CHF 117.6 million against a loss of CHF 29.7 million a year ago. Asia-Pacific delivered the strongest performance, with revenues increasing 43.1% year over year to CHF 170.5 million, or 54.7% on a constant-currency basis. The region again represented more than 20% of total company sales, supported by standout momentum across Japan, South Korea and Greater China.EMEA revenues increased 15.4% year over year to CHF 228.2 million, or 20.5% on a constant-currency basis, reflecting continued growth across the region.Americas revenues increased 4.5% year over year to CHF 451.6 million. On a constant-currency basis, sales increased 13%. Footwear remained the largest contributor to sales, with revenues increasing 10.9% year over year to CHF 781.6 million. On a constant-currency basis, footwear sales rose 18.9%.Apparel revenues increased 47.7% to CHF 54.2 million, or 56.2% at constant currency. Accessories revenues climbed 88.3% to CHF 14.5 million, with constant-currency growth of 102.2%, underscoring faster expansion outside the core footwear category.The company is also advancing its running innovation pipeline. It recently launched the Cloudboom Strike 2 and plans to debut its new SURREAL superfoam in the Cloudsurfer 3 later this year, while expanding LightSpray technology into additional core franchises. The company ended the second quarter with cash and cash equivalents of CHF 1.21 billion compared with CHF 1.02 billion at the end of 2025. Net working capital increased 11.5% to CHF 635.9 million from CHF 570.3 million.For the first six months of 2026, cash inflow from operating activities increased to CHF 255 million from CHF 89.1 million a year earlier. Investing activities used CHF 47.2 million, while financing activities used CHF 43.3 million. Following a strong first half of 2026, management expects constant-currency net sales growth in the low-20% range for the year. At current spot rates, this implies reported net sales of CHF 3.47 billion to CHF 3.56 billion. The company expects DTC to strongly outperform wholesale in the second half as it deliberately manages wholesale sell-in to protect full-price integrity and create a clean runway for upcoming breakthrough innovations.On Holding raised its gross margin outlook to at least 65%, reflecting a favorable DTC mix, full-price discipline and operational efficiencies. The outlook excludes any benefits from anticipated tariff refunds in the second half of the year.Management reiterated its adjusted EBITDA margin guidance of 19.5% to 20% while continuing to invest in future growth opportunities. The company remains focused on pursuing high-quality growth while maintaining its premium positioning. ONON Stock Past Three-Month Performance Image Source: Zacks Investment Research Shares of this Zacks Rank 3 (Hold) company have risen 14.6% over the past three months compared with the industry’s 15.6% growth. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 42.1% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Deckers Outdoor Corporation DECK is a designer, producer and brand manager of footwear, apparel and accessories for outdoor sports, performance activities and lifestyle use. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales suggests growth of 6.7% and 7.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 15.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report On Holding AG (ONON) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Capri Holdings Limited CPRI reported first-quarter fiscal 2027 results, with revenues declining but adjusted earnings increasing year over year. Both metrics surpassed the Zacks Consensus Estimate. The company reported adjusted earnings of 67 cents per share for the first quarter, up 34% from 50 cents a year earlier. The reported figure exceeded the Zacks Consensus Estimate of 40 cents. Capri Holdings Limited price-consensus-eps-surprise-chart | Capri Holdings Limited Quote Revenues declined 3.5% year over year to $769 million from $797 million but topped the consensus estimate of $750 million. Better full-price selling and lower tariff rates helped lift gross margin, while Jimmy Choo delivered double-digit revenue growth during the quarter. Gross profit edged down 0.4% year over year to $500 million from $502 million. Gross margin expanded 200 basis points to 65% from 63% in the prior-year period, supported by stronger full-price sell-throughs and lower tariff rates despite lower sales. Selling, general and administrative expenses declined 0.9% year over year to $451 million from $455 million. Adjusted operating income increased 40% year over year to $28 million from $20 million. Adjusted operating margin improved 110 basis points to 3.6% from 2.5% in the previous year period. Revenues in the Americas fell 6.3% to $430 million from $459 million and exceeded the Zacks Consensus Estimate of $408 million. Revenues in EMEA slipped 1.8% to $224 million from $228 million and came in below the consensus estimate of $234 million, reflecting softer European trends, reduced tourist traffic and disruption related to the conflict in the Middle East. Asia revenues increased 4.5% to $115 million from $110 million, ahead of the consensus estimate of $111 million. Management also noted positive full-price comparable sales for Michael Kors in China. Michael Kors revenues decreased 7.1% year over year to $590 million from $635 million but exceeded the Zacks Consensus Estimate of $585 million. Revenues in the Americas declined 9.9% to $372 million from $413 million, EMEA revenues fell 5.3% to $142 million from $150 million, while Asia revenues increased 5.6% to $76 million from $72 million. Gross profit declined 2.8% year over year to $377 million from $388 million. Gross margin expanded 280 basis points to 63.9% from 61.1% in the previous year period, benefiting from higher full-price sell-throughs and lower tariff rates. Operating income decreased 12.7% year over year to $55 million from $63 million, while operating margin narrowed 60 basis points to 9.3% from 9.9%, as expense deleverage associated with lower revenues more than offset the gross-margin improvement. Operating income remained above the Zacks Consensus Estimate of $51 million. Jimmy Choo revenues increased 10.5% year over year to $179 million from $162 million, exceeding the Zacks Consensus Estimate of $166 million. Revenues in the Americas climbed 26.1% to $58 million from $46 million, EMEA revenues increased 5.1% to $82 million from $78 million, and Asia revenues rose 2.6% to $39 million from $38 million. Gross profit increased 7.9% year over year to $123 million from $114 million, while gross margin declined 170 basis points to 68.7% from 70.4% due to channel mix. Operating income rose to $13 million from $4 million a year ago, ahead of the Zacks Consensus Estimate of $4 million. Operating margin improved 480 basis points to 7.3% from 2.5%. Retail and wholesale revenues both increased at low-double-digit rates, supported by broad-based growth across regions and product categories. Capri ended the quarter with cash and cash equivalents of $114 million compared with $129 million a year earlier. Total borrowings stood at $338 million, with a net debt of $224 million. Operating cash flow was $ 73 million for the first quarter, with free cash flow of $48 million. Capital expenditure was $ 25 million. Inventory declined year over year to $624 million from $779 million. In the quarter, the company repurchased about 2.6 million shares for $50 million, leaving $871 million available under its authorization. Capri Holdings lowered its fiscal 2027 revenue outlook, now expecting approximately $3.4 billion compared with its previous forecast of $3.525 billion. The revision reflects an estimated $50 million impact from inventory delays at Michael Kors, a $50 million hit from softer trends in the EMEA region related to the ongoing conflict in the Middle East and a $35 million foreign currency headwind. The company also reduced its operating income outlook to approximately $170 million from $190 million previously, while maintaining its earnings per share expectation of about $2.15 and an effective tax rate in the low-teens range. Net interest and other income guidance was raised to approximately $100 million from the earlier expectation of $85-$90 million. At the brand level, Michael Kors' revenue outlook was lowered to approximately $2.765 billion from $2.9 billion, while Jimmy Choo's revenue forecast was increased to approximately $635 million from $625 million. For the second quarter of fiscal 2027, Capri expects revenues of approximately $780 million. The outlook reflects inventory delays at Michael Kors, softer trends in EMEA, foreign currency headwinds and the timing shift of wholesale shipments that benefited the first quarter. The company expects operating income of about $10 million and earnings per share of approximately 20 cents. Michael Kors is projected to generate roughly $645 million in revenues with a high-single-digit operating margin, while Jimmy Choo is expected to produce about $135 million in revenues with a negative mid-single-digit operating margin. Shares of this Zacks Rank #3 (Hold) company have plunged 14.3% over the past three months against the industry’s growth of 7.9%. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: Urban Outfitters, Inc. URBN offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 11.8% and 12.7%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average. Deckers Outdoors Corporation DECK, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally.  At present, Deckers carries a Zacks Rank of 2. The Zacks Consensus Estimate for DECK’s current fiscal-year sales and earnings indicates growth of 7.9% and 6.7%, respectively, from the year-ago figures. DECK delivered a trailing four-quarter earnings surprise of 15.2%, on average. Boot Barn Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2. The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capri Holdings Limited (CPRI) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Boot Barn Holdings, Inc. BOOT raised its fiscal 2027 earnings outlook after a first-quarter beat, but the quality of that increase matters. Tariff refunds supplied a large, temporary margin lift that will largely disappear after the second quarter.The outlook can still hold if new stores remain productive, underlying product margins keep improving and e-commerce demand offsets softer store traffic. July’s slowdown makes those operating drivers more important. First-quarter earnings of $2.29 per share topped the Zacks Consensus Estimate of $1.69 by 35.5% and increased 31.6% year over year. Sales advanced 17.7% to $593.5 million, 2% above the consensus mark, as new stores and positive comparable sales supported growth.Management raised fiscal 2027 earnings guidance to $8.80-$9.23 per share from $8.21-$8.64. Total sales are projected at $2.58-$2.63 billion, with 70 store openings expected to support 14-16% sales growth. The first-quarter merchandise margin included a 250-basis-point benefit from $14.7 million of tariff refunds. The refunds added 38 cents to quarterly earnings per share, making them a meaningful contributor to the reported gain.That benefit drops to an expected $2.4 million, or 6 cents per share, in the second quarter and $0.7 million, or 2 cents, in the third. No refund benefit is expected in the fourth quarter, so later-period earnings will depend more heavily on normal product economics and expense control. Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote Excluding refunds, first-quarter product margin expanded 60 basis points. Scale benefits, discounted inventory purchases, better full-price selling and assortment execution supported the improvement, even as freight created a 90-basis-point headwind.Management expects merchandise margin to continue improving and projects about 60 basis points of expansion excluding refunds for fiscal 2027. That forecast is central to the raised outlook because exclusive-brand penetration is expected to remain roughly flat or slightly lower.Peer context shows why execution matters. Deckers Outdoor Corporation DECK manages footwear and lifestyle brands including HOKA, UGG and Teva, while Wolverine World Wide, Inc. WWW operates brands such as Merrell and Saucony. Both compete for consumer attention across footwear and apparel categories. Consolidated same-store sales were flat during the first four weeks of the second quarter. Retail store comparable sales declined 1.2%, while e-commerce comparable sales increased 10.7%, preserving a clear digital growth advantage.The early-quarter pace trails the full-year target for 2-4% consolidated comparable-sales growth. Management attributed the slowdown partly to fewer western lifestyle events, concerts and traffic disruption tied to World Cup broadcasts, but sustained weakness would pressure occupancy leverage as new stores open. Image Source: Zacks Investment Research The raised outlook remains achievable, but the margin mix must shift from refunds to repeatable operating gains. Product-margin improvement, new-store productivity and double-digit digital growth can support the plan, while traffic and occupancy costs are the clearest near-term tests.BOOT currently carries a Zacks Rank #1 (Strong Buy). The Growth Score of B, Value Score of B and VGM Score of B complement that rank, while the Momentum Score of C signals less favorable price-based timing than the company’s earnings and valuation characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for fiscal 2027 earnings rose 7.3% over the past four weeks, reinforcing the positive revision trend behind the rank. Investors should still watch post-refund earnings quality, retail traffic and expansion-related costs before assuming the first-quarter pace will persist. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Boot Barn Holdings, Inc. BOOT reported first-quarter fiscal 2027 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. The western and workwear retailer benefited from strong new-store productivity, same-store sales growth, robust e-commerce demand and merchandise margin expansion. Management also raised its fiscal 2027 outlook, reflecting confidence in continued execution despite a softer start to the second quarter.The quarterly earnings of $2.29 per share beat the Zacks Consensus Estimate of $1.69 by 35.5% and increased 31.6% from $1.74 reported in the year-ago quarter. Net sales rose 17.7% year over year to $593.5 million, surpassing the Zacks Consensus Estimate of $582 million by 2%. Sales growth was driven by new-store expansion and positive comparable sales across both retail stores and e-commerce. Consolidated same-store sales increased 4.7% during the quarter. Retail store same-store sales rose 3.8%, supported by a 3% increase in average unit retail, while transactions remained approximately flat. E-commerce same-store sales jumped 13.4%, driven by double-digit growth at bootbarn.com, underscoring continued strength in the company's omnichannel strategy.Boot Barn opened 27 new stores during the quarter compared with 14 in the prior-year period, ending the quarter with 566 stores across 49 states. Management continues to expect 70 new store openings in fiscal 2027 and reiterated its long-term opportunity to expand to approximately 1,200 U.S. locations. New locations are projected to generate average annual sales of about $3.2 million, with an investment payback period of less than two years.Across merchandise categories, men's western boots posted mid-single-digit growth, while women's western boots declined at a mid-single-digit rate against difficult prior-year comparisons. Men's and women's apparel increased at a high-single-digit pace, led by double-digit denim growth. Work boots delivered high-single-digit growth, marking the category's fifth consecutive quarter of positive growth, aided by improved merchandising, stronger marketing support and investments in key third-party brands. Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote Gross profit increased 21.6% to $239.9 million, with the gross margin expanding about 130 basis points to 40.4%. Merchandise margin expanded by 220 basis points, including a 250-basis-point benefit from $14.7 million of tariff refunds and 60 basis points of product-margin expansion. These gains were partly offset by a 90-basis-point freight headwind.SG&A expenses rose 18.1% to $149.4 million and represented 25.2% of sales, up roughly 10 basis points. Operating income climbed 28% to $90.5 million, while the operating margin expanded to 15.3% from 14% in the prior-year quarter. Operating cash flow rose to $83.8 million from $73.9 million a year earlier. Capital expenditures increased to $51.1 million from $31.5 million as the retailer continued investing in its store base and infrastructure. The company expects capital expenditures, net of estimated landlord-tenant allowances, between $125 million and $130 million for fiscal 2027.BOOT ended the quarter with $139.3 million in cash and no borrowings under its revolving credit facility. The company repurchased more than 158,451 shares for $25 million during the quarter. It also doubled its revolving credit capacity to $500 million and extended the facility’s maturity to 2031. Backed by its better-than-expected first-quarter performance, Boot Barn raised its fiscal 2027 outlook. Management now expects earnings in the range of $8.80-$9.23 per share, up from the previous guidance of $8.21-$8.64, including an estimated 46-cent benefit from tariff refunds. Total sales are projected to be between $2.580 billion and $2.625 billion, while consolidated same-store sales are expected to increase 2-4% for the year, with retail store same-store sales growth of 1-3% and e-commerce same-store sales growth of 11-13%. The company had earlier total sales in the band of $2.578-$2.623 billion.The merchandise margin rate is now expected to reach approximately 52.2% of sales, up 130 basis points year over year. The expansion includes 70 basis points from tariff refunds, 50 basis points from product-margin improvement and 10 basis points from lower freight costs. BOOT forecasts gross profit between $993 million and $1,016 million, or approximately 38.5% to 38.7% of sales.For the second quarter, Boot Barn expects net sales of $572-$582 million, suggesting year-over-year growth of 13-15%. Consolidated same-store sales are projected to range from flat to up 2%, with retail store same-store sales between down 1% and up 1% and e-commerce same-store sales growth of 10% to 12%. Management expects earnings in the range of $1.55-$1.65 per share, including an estimated 6-cent benefit from tariff refunds.Boot Barn expects second-quarter merchandise margin between $297 million and $302 million, or approximately 51.8% of sales, up 140 basis points year over year. The outlook includes an estimated $2.4 million benefit from tariff refunds. Gross profit is projected in the range of $208-$213 million, implying about 36.3%-36.6% of sales.Management noted that consolidated same-store sales were approximately flat during the first four weeks of the second quarter. The moderation reflected fewer Western lifestyle stadium events and concerts, along with temporary traffic disruptions tied to World Cup broadcasts. Despite the softer July performance, management said the consumer remained healthy, reaffirmed confidence in its outlook for the balance of the year and maintained that Boot Barn was well positioned to deliver another year of profitable growth.Shares of this Zacks Rank #3 (Hold) company have fallen 12% over the past three months against the industry’s rise of 4.5%. Genesco Inc. GCO, a retailer and wholesaler of footwear, apparel, and accessories, flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.Designer Brands Inc. DBI, one of the world's largest designers, producers, and retailers of footwear and accessories, currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Canada Goose’s current fiscal-year sales and earnings calls for growth of 0.5% and 137.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.Deckers Outdoor Corporation DECK, a global leader in designing, marketing, and distributing innovative footwear, apparel and accessories, currently carries a Zacks Rank #2.The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings calls for growth of 7.9% and 6.7%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 15.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Deckers Outdoor Corporation DECK has a clearer bull case after a better-than-expected start to fiscal 2027 and a modestly higher earnings outlook.The question is whether earnings resilience, valuation and balance-sheet strength can outweigh tariff pressure, elevated spending and heavier dependence on HOKA and UGG. Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote Deckers reported first-quarter fiscal 2027 earnings of 94 cents per share, up from 93 cents a year earlier. The result surpassed the Zacks Consensus Estimate of 88 cents by 6.8%.Management raised full-year earnings guidance to $7.35-$7.50 per share from $7.30-$7.45. The increase was driven by stronger-than-expected gross margin performance, with the company now expecting gross margin to be slightly better than 56.5%. DECK trades at 13.41X forward 12-month earnings. That is below its five-year median of 19.79X, the Zacks sub-industry multiple of 14.89X and the S&P 500’s 20.14X.The valuation case is attractive but not absolute. The stock’s five-year low multiple is 11.99X, so the current level is below key benchmarks but not deeply discounted relative to its own trough. Image Source: Zacks Investment Research Deckers ended the first quarter with $1.60 billion in cash and no outstanding borrowings. Inventories declined 4.9% year over year to $807.6 million, giving the company a cleaner operating base.That financial flexibility matters because Deckers is still investing in marketing, technology, stores and talent. A debt-free balance sheet gives it room to fund those priorities while continuing capital returns. Deckers repurchased about 3.3 million shares for $338.2 million in the first quarter at an average price of $103.79. About $4.7 billion remained under the share repurchase authorization at quarter-end.The lower share count helped earnings per share rise even as operating income declined 6% to $155.3 million. That makes buybacks a meaningful support to per-share growth, though not a substitute for operating profit expansion. The risk case remains visible. Higher tariffs were the biggest gross margin headwind in the quarter, and the fiscal 2027 outlook assumes a higher ongoing tariff rate of 12.5%. Selling, general and administrative expenses are still expected to be about 35% of net sales.Domestic sales rose 3.2%, trailing international growth of 8.4%. Other Brands sales fell 18.1% to $37.9 million, increasing the importance of HOKA and UGG execution.That concentration heightens exposure to demand shifts or product misses in the two core brands. Large athletic footwear competitors such as NIKE, Inc. NKE and adidas AG ADDYY also keep innovation, marketing and distribution pressure high across performance and lifestyle categories. DECK looks attractive for investors who can accept execution risk. The earnings update, below-median earnings multiple, strong cash position and buyback capacity support a constructive view, while tariffs and spending limit the margin for error.The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. It also has a VGM Score of A and Growth Score of A, while its Value Score of B and Momentum Score of B remain favorable under the Zacks Style Scores framework.Those scores work best as complements to the Zacks Rank rather than stand-alone signals. The longer-term Neutral stance keeps the conclusion measured: DECK offers selective upside, but the investment case still depends on sustained HOKA and UGG demand, expense discipline and tariff management. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Deckers’ second quarter results featured a combination of steady top-line growth and margin compression. Management attributed revenue performance to strong consumer demand for both HOKA and UGG brands, with particularly robust growth in the direct-to-consumer (DTC) channel. CEO Stefano Caroti highlighted, “Both HOKA and UGG maintained solid momentum and continued to capture high level of full-price consumer demand,” pointing to successful product launches and disciplined inventory management. However, competitive pressures, an increase in tariffs, and higher operating expenses weighed on profitability for the quarter. Is now the time to buy DECK? Find out in our full research report (it’s free). Revenue: $1.02 billion vs analyst estimates of $1.02 billion (5.7% year-on-year growth, in line) EPS (GAAP): $0.94 vs analyst estimates of $0.88 (7.3% beat) The company reconfirmed its revenue guidance for the full year of $5.89 billion at the midpoint EPS (GAAP) guidance for the full year is $7.43 at the midpoint, missing analyst estimates by 1% Operating Margin: 15.2%, down from 17.1% in the same quarter last year Locations: 206.5 at quarter end, up from 191 in the same quarter last year Constant Currency Revenue rose 4.8% year on year (16.3% in the same quarter last year) Same-Store Sales rose 6.8% year on year (-2.2% in the same quarter last year) Market Capitalization: $14.1 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jay Sole (UBS) asked how new HOKA franchises contribute to future growth. CEO Stefano Caroti highlighted ongoing product innovation and segmentation, emphasizing strong early consumer response and confidence in continued momentum. Adrienne Yih-Tennant (Barclays) inquired about the competitive landscape and tariff impacts. Caroti pointed to share gains in performance categories, while CFO Steve Fasching detailed the company’s planning for higher tariffs and flexibility regarding potential refunds. Laurent Vasilescu (BNP Paribas) questioned the sustainability of DTC growth and order book stability. Fasching reiterated that DTC demand remains strong, and Caroti confirmed there have been no cancellations, with UGG’s diversified product mix helping mitigate weather-related risks. Paul Lejuez (Citi) asked about promotional activity in Europe and gross margin sensitivity to tariffs. Caroti noted robust demand and brand strength in Europe, while Fasching clarified the timing and impact of tariffs on inventory sold. Samuel Poser (Williams Trading) probed margin benefits from disciplined closeouts and changes in UGG distribution. Fasching explained improved gross margin management, and Caroti described the ongoing strategy to elevate brand positioning and retailer partnerships. In future quarters, the StockStory team will focus on (1) the pace and consumer response to new product launches across HOKA and UGG, (2) Deckers’ ability to balance premium pricing and clean inventory amid rising tariffs and input costs, and (3) the effectiveness of expanded DTC and wholesale initiatives in international markets. Execution around these priorities will be critical for sustaining growth and protecting margins. Deckers currently trades at $103.20, up from $96.23 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered record Q1 revenue exceeding $1 billion, driven by strong full-price demand and a 13% increase in Direct-to-Consumer (DTC) sales. HOKA growth was fueled by a broad-based innovation strategy across road, trail, and lifestyle, with new models like the Speedgoat 7, Mach 7, Mafate Speed 2, and Skyward collectively contributing over half of the brand's DTC growth. UGG successfully transitioned toward a year-round lifestyle brand by expanding fashion casual footwear, sneakers, and sandals, reducing seasonal dependence on classic boots. Maintained a disciplined 'pull model' of demand by keeping inventories lean (down 5% year-over-year) to protect brand heat and avoid promotional pressure. Wholesale performance aligned with expectations despite international shipment timing shifts, as underlying sell-through and reorder rates remained robust. Strategic investments in technology, design, and marketing have enabled HOKA to expand its addressable market into lifestyle occasions without compromising performance credibility. Projected revenue growth is expected to accelerate in the second half of the year as international wholesale and distributor shipments normalize following Q1/Q2 timing shifts. Management raised the full-year gross margin outlook to slightly better than 56.5%, factoring in Q1 outperformance while conservatively increasing the go-forward tariff rate assumption to 12.5%. The HOKA product pipeline for the second half includes broader assortment differentiation, such as the Clifton Pro for selective wholesale and the Clifton 11 for wider distribution. Operating expense leverage is anticipated to begin in fiscal year 2028, following a year of foundational investments in global HOKA stores, technology, and data analytics. Guidance assumes continued consumer resilience for premium brands despite a pressured macroeconomic backdrop and potential volatility in global trade policies. Gross margin benefited from a 60-basis point tailwind due to improved management of product closeouts and higher full-price selling mix. The company is actively pursuing tariff refunds related to the IEEPA ruling but has excluded any potential recovery from current financial guidance. Second-quarter earnings are expected to face headwinds from rising freight costs and the lapping of the Koolaburra brand wind-down. Share repurchases remain a core capital allocation pillar, with $338 million executed in Q1 and $4.7 billion remaining under current authorization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized that newness and innovation are driving reorders, with the broader assortment allowing for deeper segmentation across strategic partners. The introduction of 'Pro' models (Clifton Pro, Mach Pro) creates a clear performance architecture that supports premium price points and expands closet share. If refunds are secured, funds will be shared with partners who absorbed costs, used to drive business growth, or returned to shareholders. The go-forward tariff assumption was raised from 10% to 12.5% to account for a volatile trade environment, primarily impacting Q3 and Q4 inventory. Management reported no cancellations in the order book, citing the brand's successful diversification into non-sheepskin and deconstructed styles. The '365' initiative has made UGG less dependent on cold winters, with sandals and sneakers now serving as significant growth contributors. Acceleration in H2 is primarily a logistical shift back to a normal cadence rather than a change in underlying demand. New distribution will focus on 'elevated quality retailers' in sporting goods and athletic specialty to maintain the brand's premium positioning.

Deckers Outdoor Corporation DECK reported first-quarter fiscal 2027 results, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company reported earnings of 94 cents per share, up 1.1% year over year, which beat the Zacks Consensus Estimate of 88 cents by 6.8%. Net sales increased 5.7% year over year to $1,019.5 million and topped the consensus estimate of $1,017 million by 0.3%. On a constant-currency basis, net sales grew 4.8% year over year.The company delivered its first-ever June quarter with more than $1 billion in revenues, driven by continued momentum in the HOKA and UGG brands, strong direct-to-consumer (DTC) demand and disciplined full-price selling across channels. Management also raised its fiscal 2027 earnings outlook following stronger-than-expected first-quarter profitability. However, investors remained cautious as the company projected lower second-quarter gross margin due to tariff and freight headwinds, and increased its tariff cost assumption for the remainder of fiscal 2027. Consequently, shares of the company lost 6.1% yesterday. Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote The HOKA brand remained the primary growth driver in the first quarter, with net sales increasing 7.7% year over year to $703.5 million, slightly missing our estimate of $705.3 million. Growth was driven by a 17% increase in DTC revenues, supported by continued strength in Europe, China, Japan and the United States. Management highlighted broad-based demand across franchise families, with Clifton, Bondi, Speedgoat 7, Mach 7, Mafate Speed 2 and Skyward contributing to growth. The company also noted encouraging early consumer response to the recently launched Clifton Pro, while healthy full-price selling and disciplined marketplace management continued to support the brand's performance.The UGG brand delivered solid first-quarter results, with net sales increasing 4.9% year over year to $278 million, beating our estimate of $276.2 million. Growth was balanced across wholesale and DTC channels, with international markets, particularly Asia, leading performance. Management highlighted continued progress in its 365 and men's growth initiatives, supported by strong demand for the Lowmel family, Golden collection and Otzo Clog. The company cited encouraging consumer response to its spring apparel collection, particularly fleece products, reinforcing UGG's expansion as a year-round lifestyle brand.Meanwhile, net sales from Other Brands declined 18.1% year over year to $37.9 million compared with our estimate of $37.5 million, primarily reflecting the continued phase-out of Koolaburra standalone operations. Wholesale net sales increased 2.2% year over year to $666.7 million in the first quarter. Reported wholesale growth reflected planned timing differences that shifted certain international wholesale and distributor shipments to later in fiscal 2027 compared with the prior year. Management emphasized that underlying demand remained healthy, supported by higher U.S. wholesale sell-in, strong full-price sell-through and record reorder activity in the EMEA region. DTC net sales increased 13% year over year to $352.8 million, while comparable DTC sales rose 6.8%, driven by continued strength across both HOKA and UGG. HOKA's international DTC business continued to post robust growth in Europe, China and Japan.From a geographic perspective, domestic net sales increased 3.2% year over year to $517.4 million. International net sales rose 8.4% to $502.1 million. Management noted that both HOKA and UGG continued to generate healthy demand across international markets, with Europe, China and Japan remaining key contributors to growth. Gross profit increased 6.9% year over year to $575.2 million in the first quarter. Gross margin expanded 60 basis points to 56.4% and surpassed our estimate of 54.6%. Favorable channel and product mix, full-price selling, foreign exchange benefits and better management of closeout inventory more than offset a 150-basis-point tariff headwind. Closeout management contributed about 60 basis points to the year-over-year margin comparison.Selling, general and administrative expenses increased 12.7% year over year to $419.9 million. As a percentage of net sales, SG&A expenses increased to 41.2% from 38.6% in the prior-year quarter. Higher spending reflected continued investments in marketing, technology, additional personnel supporting key growth initiatives, higher occupancy costs related to new HOKA stores and unfavorable foreign currency remeasurement.Operating income declined 6% year over year to $155.3 million from $165.3 million in the year-ago quarter. The operating margin contracted to 15.2% from 17.1%. Cash and cash equivalents were $1.60 billion as of June 30, 2026, compared with $1.72 billion a year earlier. Inventories declined 4.9% year over year to $807.6 million, and the company maintained a debt-free balance sheet with no outstanding borrowings. Total stockholders' equity stood at $2.30 billion at the end of the quarter.During the first quarter of fiscal 2027, Deckers repurchased approximately 3.3 million shares of its common stock for $338.2 million at an average price of $103.79 per share. The company noted that share repurchases continued to be an important component of its capital allocation strategy.As of June 30, 2026, approximately $4.7 billion remained available under the company's existing share repurchase authorization. For the fiscal second quarter, this Zacks Rank #2 (Buy) company expects consolidated revenues to increase approximately 5% year over year. HOKA revenues are projected to grow at a high-single-digit rate, while UGG is expected to maintain its mid-single-digit growth rate. Other Brands revenues are expected to decline approximately 50% from the prior-year quarter, primarily reflecting the continued streamlining of the company's brand portfolio following the wind-down of the Koolaburra business.Management indicated that second-quarter results will continue to reflect planned timing differences in the wholesale and distributor businesses, with some international shipments moving later into the fiscal year. Similar to the first quarter, these timing dynamics are expected to affect reported wholesale growth but do not reflect any change in underlying consumer demand. The company expects continued strength in its direct-to-consumer business, while emphasizing that HOKA and UGG will continue to experience healthy demand across regions and channels.Gross margin is expected to decline year over year due to higher tariff costs and rising freight expenses. Selling, general and administrative expenses will remain elevated as the company continues to make first-half weighted investments in its strategic growth initiatives, including brand-building, technology and marketplace expansion. As a result, earnings per share are expected to be in the range of $1.73-$1.78.Management also reiterated that revenue growth is expected to accelerate in the second half of fiscal 2027, primarily driven by the HOKA brand and the normalization of international wholesale and distributor shipment timing. The company noted that quarterly growth is not expected to be linear as it continues to prioritize a pull model of demand and disciplined marketplace execution to support long-term sustainable growth. For fiscal 2027, Deckers continues to expect consolidated net sales to be in the range of $5.86-$5.91 billion, representing high-single-digit growth from the prior year. HOKA revenues are still expected to increase at a low-double-digit rate, while UGG revenues are projected to grow at a mid-single-digit pace. Management continues to expect revenue growth to accelerate in the second half of fiscal 2027, primarily driven by the HOKA brand and the normalization of international wholesale and distributor shipment timing.The company now expects gross margin to be slightly better than 56.5%, reflecting stronger-than-expected first-quarter performance. The updated outlook incorporates a higher forward tariff assumption of 12.5%, up from the previous 10% and continues to exclude any benefit from potential refunds of tariffs previously paid. Management indicated that it is pursuing tariff refunds but has not included any related assumptions in its fiscal 2027 guidance given the uncertainty around timing and recovery.Selling, general and administrative expenses are still expected to be approximately 35% of net sales as Deckers continues investing in its long-term growth initiatives. Planned investments remain focused on strengthening the company's brand portfolio through marketing, expanding technology capabilities and data analytics, supporting key growth initiatives and reinforcing the foundation of the business. Management stated that these investments are intended to position the company for operating expense leverage beginning in fiscal 2028 and beyond.Operating margin is now anticipated to be slightly better than 21.5%, reflecting the improved gross margin outlook. The company continues to project an effective tax rate of approximately 23% and has raised its fiscal 2027 earnings per share guidance to $7.35-$7.50, as compared with its prior outlook of $7.30-$7.45, driven by higher expected gross margin. The guidance also assumes share repurchases with a value equal to approximately 80% of projected fiscal 2027 free cash flow. DECK Stock Past Three-Month Performance Image Source: Zacks Investment Research Shares of the company have lost 9.9% over the past three months compared with the industry’s 1.2% decline. Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.Canada Goose GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. The company also holds a Zacks Rank #1 at present. The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales indicates growth of 58.9% and 3.7%, respectively, from the year-ago actuals. GOOS delivered a negative trailing four-quarter average earnings surprise of 43.3%.Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2.The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research