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GOLETA, Calif. - Deckers Brands (NYSE: DECK), a prominent player in the footwear and apparel industry, announced today its intention to carry out a six-for-one forward stock split, subject to shareholder approval. The company's Board of Directors has also sanctioned an increase in the number of authorized shares of both common and preferred stock to facilitate the split.
This strategic move is contingent upon Deckers' shareholders endorsing an amendment to the company's Certificate of Incorporation. The proposal for this amendment will be put to vote at the annual meeting of stockholders scheduled for September 9, 2024. Following anticipated approval, Deckers plans to promptly file the amendment with the Secretary of State of the State of Delaware and implement the stock split along with the share increase.
Deckers' President and CEO, Dave Powers, commented on the rationale behind the split, citing the company's robust financial growth and successful strategic execution as key factors driving up the trading price of its common stock. The split is aimed at enhancing the affordability and appeal of Deckers' shares to a wider investor base, including employees, and to boost the liquidity of its common stock trading.
Should the stockholders give the green light, and once the charter amendment is effective, every one share of common stock held on the record date of September 6, 2024, will be converted into six shares of common stock. The same ratio will apply to preferred stock, although currently, there are no preferred shares issued. Deckers expects to distribute the additional shares after the market closes on September 16, 2024.
Trading on a post-stock split adjusted basis on the New York Stock Exchange is anticipated to commence at the opening of the market on September 17, 2024, pending final approval.
Deckers Brands has a diverse portfolio that includes UGG®, HOKA®, Teva®, Sanuk®, Koolaburra®, and AHNU®, with a global reach spanning over 50 countries. The company emphasizes its over 50-year legacy in building niche footwear brands into lifestyle market leaders.
The press release also serves as a solicitation material in relation to the proposed charter amendment and stock split, urging shareholders to review the definitive proxy statement to be filed with the SEC, which will provide detailed information pertinent to the voting process.
The forward-looking statements in the press release are subject to risks and uncertainties, and actual results may differ materially due to various factors, including the risk that the proposed increase in authorized shares and the stock split may not receive shareholder approval or may face legal or regulatory hurdles.
This news article is based on a press release statement from Deckers Brands.
In other recent news, Deckers Outdoor (NYSE:DECK) Corporation has been the focus of multiple analyst upgrades and revised earnings estimates, reflecting the company's strong performance.
Wedbush maintained a positive outlook on Deckers, keeping the price target unchanged at $1,030, and expressed optimism about the company's Hoka and UGG brands. Meanwhile, KeyBanc raised its price target for Deckers to $1,015, citing impressive fourth-quarter results and a projected revenue growth of 10% for fiscal year 2025.
Baird increased its price target for Deckers to $1,050, following earnings per share that significantly exceeded consensus estimates. Truist Securities raised its price target on Deckers shares to $1,011, acknowledging the company's strong financial performance driven by the UGG and Hoka brands. Williams Trading increased its price target for Deckers to $1,130, highlighting the company's effective brand and investor expectation management.
These recent developments reflect analysts' outlook on Deckers Outdoor's financial health and business strategy, with a particular focus on the UGG and Hoka brands' performance. Analysts from various firms anticipate the company's continued success and growth, reminding investors to consider potential risks and future market conditions.
InvestingPro Insights
As Deckers Brands (NYSE: DECK) prepares for a significant stock split to broaden its appeal to investors, a closer look at the company's financial health and market performance offers valuable insights. According to InvestingPro data, Deckers holds a market capitalization of approximately $22.61 billion, reflecting its substantial presence in the footwear and apparel industry.
The company's strategic financial positioning is evident, with a P/E ratio standing at 30.18, suggesting that Deckers is trading at a price relatively commensurate with its earnings. This is further supported by a PEG Ratio for the last twelve months as of Q4 2024, which is at 0.59, indicating potential undervaluation relative to near-term earnings growth. Such metrics are crucial for investors considering the company's future growth prospects.
Deckers' robust revenue growth is also notable, with an 18.21% increase in the last twelve months as of Q4 2024. This growth trajectory is complemented by a strong gross profit margin of 55.63%, showcasing the company's ability to translate sales into profits efficiently.
Among the InvestingPro Tips, Deckers is highlighted for holding more cash than debt on its balance sheet, which is a reassuring sign of financial stability for shareholders. Additionally, the company is recognized for its liquidity, with liquid assets exceeding short-term obligations. This financial resilience may be particularly appealing to investors in the current economic climate.
For those looking to delve deeper into Deckers' financial performance and stock potential, InvestingPro offers additional tips, including insights on valuation multiples and profitability forecasts. There are 12 more InvestingPro Tips available, providing a comprehensive analysis for informed investment decisions. To access these tips and enhance your investment strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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