Jim Cramer expressed skepticism about Deckers Brands' recent performance, citing lackluster revenue growth and weak comparable store sales. The retailer's recent quarterly results show modest gains that fail to match investor expectations.
- Deckers Brands reported a 3.1% year-over-year revenue increase in its most recent quarter
- Comparable store sales grew just 1.4% during the same period
- Cramer highlighted the lack of meaningful acceleration in digital sales and international expansion
- The company's gross margin contracted slightly to 61.8%, down from 62.3% in the prior-year quarter
- Investor sentiment has cooled, with Deckers' stock down 8.2% over the past three months
- Cramer emphasized that sustained momentum requires more than incremental gains in a competitive footwear market
Jim Cramer voiced concern over Deckers Brands' ongoing struggles to generate strong momentum, stating in a recent broadcast that the company's performance remains underwhelming despite recent efforts to reposition its portfolio. The comments follow the release of Deckers' latest fiscal quarter results, which revealed a 3.1% year-over-year increase in revenue, slightly above consensus estimates but falling short of growth targets set by analysts. Comparable store sales rose only 1.4%, a figure that Cramer described as 'insufficient' for a company with Deckers' brand exposure and retail footprint.