$DECK coming soon plus $ELF deep dive

Over the next couple days I’ll be finishing up my next large cap deep dive on Deckers ($DECK), a footwear company that owns Hoka, Ugg, Teva and several other brands. Deckers might have the best acquisition of all time. 10 years ago DECK bought Hoka for ~$2 million and now Hoka does ~$1.5 billion of annual revenues which means the brand is probably worth $6+ billion by itself which accounts for ~50% of DECK’s current market cap. Hoka growth is slowing down but the next 5+ years still look very strong for the brand as they continue to win new customers. Unfortunately I have less confidence in their other brands which is why total sales are only growing ~15% YoY however the valuation is reasonable at 15x NTM EV/EBITDA and 22x NTM P/E, cheaper than NKE but growing faster.

I should have part 1 of my DECK writeup out tonight or tomorrow.

In the meantime here’s part 1 of my ELF writeup that went to my small cap deep dive subscribers last week. I don’t currently have a position in ELF but it’s at the top of my watchlist because they continue to execute very well, add more distribution and now making smart, strategic, accretive acquisitions to expand their product portfolio and their TAM…

https://smidcapdeepdives.substack.com/p/fb3bc11b-1ac0-497f-b4ca-ca8a4e733a40

Have a great day,

~Jonah