CNBC’s Jim Cramer sees footwear maker Deckers Outdoor as a disruptive industry player that even major rivals like Nike ought to be afraid of. “Nobody can hold a candle to them right now,” Cramer said Friday on “Squawk on the Street.” Deckers is the corporate behind fashion brand UGG, trainers Hoka and others. Deckers reported strong quarterly earnings after the market closed Thursday, sending shares up greater than 14.5% to an all-time high of nearly $1,037 on Friday. The stock has gained greater than 50% year-to-date — much better than the S&P 500, which is up 11% over the identical period. DECK YTD Mountain shares performance of DECK year-to-date. “It’s very rare that you see not just one, but two different shoes doing really well,” Cramer said, referring to UGG and Hoka. Those brands benefited from high sales at full price, which Cramer found impressive on condition that many consumers today are on the lookout for discounts. “Usually you get discounts – there are no discounts.” He added, “UGG is an incredible brand. It just continues to have great numbers and great gross margins.” However, management gave a conservative outlook for fiscal 2025 – assuming 10% revenue growth, in step with Wall Street expectations, but lower margins. Deckers’ growth this 12 months has been higher than Nike’s, which has seen fluctuating demand within the U.S. and slowing growth in China. Although Deckers’ sales are smaller than Nike’s, Cramer said that does not imply Deckers’ brands aren’t serious competitors. “The people I know who work at Nike aren’t afraid of Hoka because it’s not a big company,” Cramer said.[But] I feel try to be afraid of anyone who has that level of dynamism. The shoe business has at all times been a dynamic business.”
