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On November 11th, shares of
Deckers Outdoors surged higher following
a report by analyst at Jefferies who believed that strong business trends and other external factors will push shares to $100 before the end of 2013.
On November 18th, analysts at Sterne Agee displayed similar bullish sentiment in a research report in which company shares received a price target increase to $88 from $80. Shares were maintained with a Buy rating.
The recent cold weather was singled out as a large contributing factor for Decker's growth prospects, according to analysts checks. Large selling items include the Classics, Classic derivatives, and slippers. All three products provide consumers with comfort and protection from cold weather with its sheepskin material.
Much like the Jefferies report, the analysts also found that consumers are replacing their UGG boots for the first time in two to three years. A shoe survey conduced by Beso.com revealed that 26 percent of the 6,750 people surveyed own a pair of Uggs. In addition, various celebrities and notable figures continue to showcase Uggs, which boasts well for the company's image of high quality and popularity.
Finally, the analysts singled out the company's “clean inventory” as a major catalyst that will aid shares going in to 2014. A lower inventory not only translates to consistent sales and lack of cancelled orders, but the ability for the company to benefit from lower sheep-skin prices in the upcoming year. The company is expected to record an inventory of $240 million at year end's but the analysts are "hopeful" the number will come in closer to $210 million
The research reports concludes with a positive outlook going in the company's fourth quarter 2013 results which will meet or beat estimates.
The company reported its third quarter 2013 earnings on October 24 and no date is set for its fourth quarter results. Streetinsider.com estimates the company will deliver its results on February 28, 2014.
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