GOLETA, Calif. - Deckers Brands (NYSE: DECK), known for its portfolio of footwear and lifestyle brands, has received stockholder approval for a six-for-one forward stock split, which was announced following their annual meeting on September 9, 2024. The company aims to make its shares more accessible to a wider range of investors, including its employees.
The stock split means that each share of Deckers' common stock will be divided into six shares. This move was made official with the filing of an amendment to the company's Amended and Restated Certificate of Incorporation with the Delaware Secretary of State, which took effect today.
Shareholders on record as of September 6, 2024, will see their holdings increase proportionally when the additional shares are distributed after the market closes on September 16, 2024. The stock is expected to begin trading on a split-adjusted basis at the opening of the market on September 17, 2024.
Deckers Brands, with a history spanning over 50 years, has built a reputation for developing niche footwear brands into lifestyle market leaders. The company's brand portfolio includes UGG®, HOKA®, Teva®, Koolaburra®, and AHNU®, with products available in more than 50 countries through various retail channels.
The company's forward-looking statements indicate that while they are optimistic about the stock split's potential to broaden ownership among investors, these statements are subject to a range of risks and uncertainties. The actual outcome of these statements may vary due to factors disclosed in the company's financial disclosures and filings with the Securities and Exchange Commission.
This news article is based on a press release statement from Deckers Brands and serves to inform the public about the company's recent stock split decision.
In other recent news, Deckers Outdoor (NYSE:DECK) Corporation has reported a significant increase of 22% in Q1 FY2025 revenues, reaching $825 million. This growth was driven by a 30% surge in revenue from the HOKA brand to $545 million and a 14% rise from the UGG brand to $223 million. Deckers' annual profit forecast has been revised upward to a range of $29.75 to $30.65 per share, reflecting confidence in the continued demand for its full-priced offerings.
Investment firms Baird, Truist Securities, and TD Cowen have raised their price targets for Deckers, indicating a positive outlook for the company's financial trajectory. Baird maintained an Outperform rating on Deckers, with a price target of $1,075, while TD Cowen endorsed the stock with a Buy rating and increased its price target to $1,055.
Deckers' new CEO, Stefano Caroti, is set to take over leadership, and retailers such as Dicks Sporting Goods and Nordstrom (NYSE:JWN) are adjusting their inventory strategies to accommodate more HOKA and UGG products. These are recent developments that continue to shape the company's performance and market position.
InvestingPro Insights
As Deckers Brands (NYSE: DECK) embarks on a new chapter with its six-for-one forward stock split, investors are keenly observing the company's financial health and market performance. With a market capitalization of approximately $23.82 billion, Deckers presents itself as a significant player in the footwear and lifestyle industry. The company's commitment to making its shares more accessible is also reflected in its financial metrics and analyst sentiment.
One of the key InvestingPro Tips for Deckers is that the company holds more cash than debt on its balance sheet, which indicates a strong financial position and potentially less risk for investors. This is particularly relevant for shareholders considering the implications of the company's recent stock split. Additionally, the fact that 8 analysts have revised their earnings upwards for the upcoming period suggests a positive outlook on the company's performance, providing further confidence to investors.
From a valuation standpoint, Deckers is trading at a P/E ratio of 29.58, which is considered low relative to its near-term earnings growth. This could signal that the company's stock is undervalued, offering an attractive entry point for new investors post-split. Moreover, the company's revenue growth is robust, with a 20.3% increase over the last twelve months as of Q1 2023, and an even higher quarterly growth rate of 22.13%.
To gain a deeper understanding of Deckers' financial health and future prospects, interested parties can explore additional InvestingPro Tips, which include insights on cash flow, earnings growth, and valuation multiples. In total, there are 13 more tips available on InvestingPro, providing a comprehensive analysis for those looking to make informed investment decisions.
For investors and analysts alike, these insights and data points from InvestingPro offer a valuable perspective on Deckers Brands' financial standing and market potential following the stock split. As the company continues to grow its brand portfolio and expand its global reach, these metrics will be crucial in assessing its ongoing success.
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