Last week, Deckers Outdoor saw its share price decline by 12%, coinciding with a broader market drop of 4.6% amidst investor uncertainty spurred by recent economic developments. The market was disrupted by the Trump administration's decision to increase tariffs on Canadian steel and aluminum, contributing to investor anxiety and impacting various sectors. With equity markets reeling from fears of potential economic slowdown and the repercussions of tariffs on cross-border commerce, pressures were evident across the board. Deckers Outdoor's price movement reflects these broader conditions, as consumer-facing stocks and retail companies with international supply chains felt the pinch. While the S&P 500 and Nasdaq simultaneously faced significant declines, Deckers' downturn aligns with market trends seen over the past week, despite the broader market being up 9% over the past year and forecasted earnings growth of 14% annually. These external factors painted a challenging backdrop for the company's shares in the latest trading period.
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Over the past five years, Deckers Outdoor Corporation has delivered a very large total shareholder return of 552.65%. This impressive performance may be attributed to several key factors. Significantly, the company has consistently grown its earnings, with an average annual increase of 23.6%, and 30.2% over the past year alone. This accelerated profit growth has had a substantial influence on the long-term share price trajectory.
During this period, Deckers successfully executed a stock buyback program, repurchasing 4.3% of its shares for US$1.65 billion. Another critical development was a six-for-one stock split enacted in September 2024. The company's product innovations, including HOKA's Bondi 9 and UGG's new fall/winter styles, have also enhanced its market appeal. As of today's date, Deckers remains a strong entity within its industry, even though it slightly underperformed the broader US market in the past year.
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Companies discussed in this article include NYSE:DECK.
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