Why Deckers stock came up today

Actions of Deckers (DECK 6.39%) were among several footwear stocks that rose today, apparently in response to a September jobs report that reassured investors about the economy’s strength, as well as the end of the hog strike as both sides reached an agreement at least by January. 15. Shoes were among the products expected to be affected by the strike, so it is not surprising to see footwear stocks, including. Skechers and On Holdingsemerging broadly in the news.

Deckers shares closed up 6.4%, even though there was no company-specific news on the stock.

Image source: Getty Images.

Consumers are more and more powerful

According to the Labor Department report, the US economy added 254,000 jobs last month, well above expectations of 150,000. The unemployment rate fell from 4.2% to 4.1% and wages rose 4%, easily outstripping inflation.

Overall, the report showed that the economy was getting stronger, which was particularly good news for consumer spending. Additionally, the end of the port closure is clearly good news for Deckers and his colleagues, especially ahead of the holiday season.

Stocks rose on the news, particularly in the consumer discretionary sector. The SPDR Select Consumer Discretionary Sector rose 1.2%, outperforming the entire market.

Deckers is by no means struggling as its high-priced Hoka running shoes have swept the nation, driving stock to new records, but the business is still sensitive to overall economic demand and dependent on the global supply chain.

In the second quarter, revenue rose 22% to $825.3 million and earnings per share nearly doubled. Hoka became the undisputed star of the business, with revenues up 30% to $545.2 million.

Can Deckers keep winning?

Deckers is fresh off a 6-for-1 stock split, a sign of the company’s excellent execution. Right now, the business seems virtually flawless, but consumer tastes can be fickle, as Deckers has experienced before with the rise and fall of UGG.

For now, the action looks like a winner, but keep an eye on the competitive landscape, especially as NIKE claims a recovery of his business.