Deckers Outdoor Corp. DECK, a leading designer, producer and brand manager of innovative, niche footwear and accessories, is slated to report third-quarter fiscal 2017 results on Feb 2. The question lingering in investors’ minds now is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported.
In the previous quarter, the company had reported positive earnings surprise of 3.4%. Notably, in the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 25.2%. Let’s see how things are shaping up prior to this announcement.
Deckers Outdoor Corporation Price, Consensus and EPS Surprise
Deckers Outdoor Corporation Price, Consensus and EPS Surprise | Deckers Outdoor Corporation Quote
Zacks Model Shows Likely Earnings Beat
Our proven model shows that Deckers Outdoor is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate stands at $4.27, while the Zacks Consensus Estimate is pegged at $4.24. So the ensuing difference – the Earnings ESP – is of +0.71%. A positive ESP combined with the company’s Zacks Rank #3, makes us reasonably confident of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing this Quarter
Deckers’ focus on expanding its brand assortments, bringing more innovative line of products, targeting consumers digitally via marketing and sturdy eCommerce, and optimizing omni-channel distribution bode well. These initiatives not only aided the stock to outperform the Zacks Categorized industry so far in the past one year but also helped post positive earnings surprise for the sixth straight quarter. We noted that Deckers’ shares have increased 19.8% in the past one year period, compared with the Zacks categorized Shoes & Retail Apparel sector that witnessed a decline of 14.2%.
Deckers targets profitable and underpenetrated markets, along with focus on product innovations and store augmentation. Further, management is transitioning to a direct subsidiary model from a distributor model outside the U.S. The company is also making substantial investments to fortify its online presence. Deckers focuses on opening smaller concept omni-channel outlets and expanding programs, such as Retail Inventory Online; Infinite UGG; Buy Online, Return In Store; and Click and Collect, in a bid to enhance customers’ shopping experience.