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 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!