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The firm is raising its estimates for the company “as Deckers deserves a higher multiple on durability of growth and sector-leading financial returns,” the analysts said.
“We’re modeling FY24 and FY25 sales growth of +10.4% and +10.1%, slightly below consensus of +10.7% and +11.1%. Our above-Consensus FY24 EPS est. of $23.02, vs $22.53, is driven by our higher gross margin and repurchases assumptions,” they explained.
TD Cowen also revealed that HOKA inbound data and checks suggest upside to consensus expectations into year-end.
“HOKA’s key franchises and new innovation are being carefully segmented by channel and now are even gaining relevancy in more lifestyle driver sneaker boutiques in a testament to the brand’s customer acquisition,” the analysts added.
They concluded that DECK is the highest ROIC business in the sector, which supports its premium valuation.
