Deckers Outdoor Corp (DECK): Janus Capital Gets a New Pair of Shoes

Page 1 of 2

Per a 13G filing this week, Janus Capital Management announced it was upping its stake of the shoemaker Deckers Outdoor Corp (NASDAQ:DECK). Janus now owns 3.6 million shares after increasing its position by 80%, and holds around 10% of Deckers’ common stock outstanding. Janus Capital Management is part of the publicly owned investment firm Janus Capital Group, and provides various investment strategies that utilize both equities and fixed income securities. Janus Capital has over $158 billion in assets under management cumulatively. Billionaire investor Ken Griffin – founder of Citadel Investment Group – is also a fan of Deckers, having increased his stake by 40% last quarter (check out Ken Griffin’s newest picks here).

Ken Griffin CITADEL INVESTMENT GROUP

Industry-wide U.S. footwear sales were up almost 5% in 2011 and should be positive over the next two years, on the back of growing discretionary spending. The transition of individuals to a more active and health conscious lifestyle will lead to increases in the performance and outdoor footwear segments. Also, assuming a return to a more normal winter, cold-weather footwear should see a boost on a year over year basis. Deckers is looking to execute in all of these high-growth industries.

Now, it’s worth mentioning that warmer-than-usual temperatures have hurt sales of the company’s UGG boots and Teva line, helping drive the stock down almost 50% year to date. These declines have also led to an inventory buildup that will likely force retailers to engage in price reductions this holiday season. A resurgence of value shoppers should help drive the purchasing demand for Deckers’ products, not to mention potential growth opportunities in Asia. Deckers expects to post a sales increase of 4.5% in 2012 and 8% in 2013.

Other top Deckers competitors include Crocs, Inc. (NASDAQ:CROX), Steven Madden, Ltd. (NASDAQ:SHOO), Wolverine World Wide, Inc. (NYSE:WWW) and Nike, Inc. (NYSE:NKE). Crocs produces unique resin-based shoe wear that offers superior comfort. Earnings for 3Q came in at $0.37 compared to $0.33 (yoy) and consensus of $0.43, and weakness in Asia is also hurting the company’s top line. The plus for Crocs is its ability to generate solid cash flow, having grown its cash position by over 40% during the last twelve months to $312 million.

In 2012 thus far, Steven Madden has seen an up-and-down year with respect to its stock price. On the whole, the shoemaker is up 25% year to date, and the sell-side expects EPS to be up 12% in 2013. For the first half of 2012, Madden saw U.S. revenues up 47%, while its foreign segment was up 58% from the same period last year. Billionaire Steve Cohen – SAC Capital founder – upped his Steven Madden stake by almost 600% last quarter (see Steven Cohen’s other key moves).

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!