CNBC's Jim Cramer sees footwear company Deckers Outdoor as a disruptive industry player that should worry even big competitors like Nike. “No one can touch them now,” Kramer said Friday on “Squawk on the Street.” Deckers is the company behind fashion brand UGG, Hoka running shoes, and more. Deckers posted a strong quarterly win after Thursday's close, sending shares soaring more than 14.5% on Friday to an all-time high of nearly $1,037 a share. The stock has gained more than 50% year to date — much better than the S&P 500's 11% advance over the same period. DECK Mountain DECK shares year-to-date performance. “It's very rare to have not one, but two different shoes that work well,” Kramer said, referring to UGG and Hoka. These brands benefited from high levels of full-price selling, which Kramer found impressive given that many consumers today look for discounts. “You usually get some discount, and there's no discount.” He added: “UGG is an amazing brand. It still has very great numbers and great gross margins.” However, management provided a conservative forecast for fiscal 2025 — geared toward 10% revenue growth, which is in line with Wall Street expectations, but with lower margins. Deckers' growth this year has been better than that of Nike, which has seen demand fluctuate in the United States and slow growth in China. While Deckers' sales are lower than Nike's, Cramer said that doesn't mean Deckers' brands aren't viable competitors. “The people I know who work at Nike aren't afraid of Hoka because it's not a big company,” Kramer said. “(But) I think you should be afraid of anyone with that level of momentum. The shoe business has historically been a momentum business.”
Trending
- Boeing Starliner Returns Empty, NASA Enlists SpaceX to Transport Astronauts
- Dividend Stocks Are a Hot Pick in the Fall Due to the Fed and Interest Rates
- Biden speaks with Zelensky, announces new military aid to Ukraine
- Meta says WhatsApp accounts linked to Iranian hackers targeted Biden, Trump
- Stocks with the biggest moves in the middle of the day: CAVA, INTU, ROST, WDAY
- Edgar Bronfman's Paramount Offer May Keep Shari Redstone Involved
- Markets are now wondering whether the Federal Reserve might cut interest rates by half a point in September.
- The United States will offer free home-use kits starting in late September.
Nike should take notice that the Hoka running shoes are doing well
