Jim Cramer’s Game Plan: 23 Stocks to Watch

12. Deckers Outdoor Corporation (NYSE:DECK)

Number of Hedge Fund Holders: 52

Cramer recently commented on Deckers Outdoor Corporation (NYSE:DECK) and said:

“We keep wondering how Hoka is doing and whether it’s still taking share from Nike. Hoka is a division of Deckers Outdoor, which reports after the close on Thursday. I anticipate a strong number for their insurgent running shoe division.”

Deckers Outdoor (NYSE:DECK) designs, markets, and distributes a wide variety of footwear, apparel, and accessories. The company’s product offerings include premium items under the UGG brand, performance gear tailored for athletes through HOKA, and casual footwear and sandals from brands such as Teva, Sanuk, Koolaburra, and AHNU. Among its brands, HOKA, which was acquired in 2012 for around $1.1 million, has emerged as a particularly significant asset.

The acquisition has proven highly successful, with HOKA projected to generate over $2 billion in sales, a goal articulated by Deckers’ CEO and President, Dave Powers last year. In the first quarter of fiscal 2025, which ended June 30, the company reported a 22% increase in revenue, driven primarily by HOKA, whose net sales rose by 29.7% to $545.2 million, up from $420.5 million. EPS for the quarter reached $4.52, an impressive 88% increase, attributed to a higher gross margin resulting from a favorable sales mix skewed toward HOKA’s premium-priced shoes.

For the full year, Deckers Outdoor (NYSE:DECK) forecasts net sales of approximately $4.7 billion, representing a 10% rise from the prior year, with projected earnings per share growth between 2% and 5%. Supporting these fundamentals is a strong balance sheet, featuring $1.4 billion in cash and no financial debt.