They report Thursday. In the shoe business, Skechers got a bid to go private, On Holdings delivered a super quarter, and Dick's Sporting Goods paid nearly twice the price to buy Foot Locker. Deckers are excellent operators. Their last quarter disappointed, partly because one of their brands ran out of inventory. He doesn't expect another weak quarter. Buy ahead of their report.
A great regional to national growth story. Up 340% over the last 2 years, though is -30% this year. He doubled-down in mid-March. They keep delivering strong numbers, growing its US store base, and revamping its loyalty program. Yesterday, they reported that business is difficult, though he thought the quarter was great: 10.8% same-store sales growth, missing the 11% estimate, revenue up 28% YOY, though EPS strongly beat. They raised their adjusted EBITDA and maintained same-store sales growth. Is a long-term play. Now is a buying opportunity. Caveat: it trades at a high multiple, so it will get hurt if there's another risk-off market. As long as their expansion continues, there's room to run.
The merger with Discover is complete. It's his favourite holding. Despite gaining 20 points in May, he sees more upside and analyst upgrades.