Deckers (DECK) Q1 Earnings Report Preview: What To Look For

Footwear and apparel conglomerate Deckers (NYSE:DECK) will be reporting earnings tomorrow after the bell. Here’s what to expect.

Deckers beat analysts’ revenue expectations by 5.5% last quarter, reporting revenues of $1.83 billion, up 17.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ EPS estimates.

Is Deckers a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Deckers’s revenue to grow 3.8% year on year to $996.6 million, slowing from the 21.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Deckers has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.8% on average.

Looking at Deckers’s peers in the footwear segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Steven Madden posted flat year-on-year revenue, missing analysts’ expectations by 1%, and Crocs reported flat revenue, topping estimates by 3.1%. Steven Madden traded up 18.7% following the results while Crocs was also up 8.7%.

Read our full analysis of Steven Madden’s results here and Crocs’s results here.

There has been positive sentiment among investors in the footwear segment, with share prices up 13.7% on average over the last month. Deckers is up 21.2% during the same time and is heading into earnings with an average analyst price target of $165.52 (compared to the current share price of $129).

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