Deckers Brands Announces Board Approval of Six-for-One Forward Stock Split
Deckers Brands (NYSE: DECK) announced a six-for-one forward stock split, approved by its Board of Directors. This stock split, along with a proportionate increase in authorized shares of common and preferred stock, is subject to stockholder approval. The approval will be sought at the upcoming annual meeting on September 9, 2024. If approved, the stock split will be implemented promptly after this meeting. The split aims to make DECK shares more affordable and attractive, increasing liquidity. Each share outstanding on September 6, 2024, will be split into six shares, effective for trading on September 17, 2024, pending NYSE approval.
- Deckers Brands announced a six-for-one forward stock split, potentially increasing stock liquidity.
- The stock split aims to make DECK shares more affordable and attractive to a broader group of investors.
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Insights
Deckers Brands' announcement of a six-for-one forward stock split carries significant implications for investors. A forward stock split increases the number of shares while reducing the price per share proportionately. This strategy can make shares more accessible to a broader range of investors, potentially increasing liquidity and market participation. Deckers Brands has seen substantial stock price appreciation and this move serves to make the stock more affordable, particularly for smaller retail investors.
Short-term impact: In the short term, a stock split itself does not change the fundamental value of the company. However, it can generate positive sentiment and increased trading activity. Investors might perceive this move as a sign of confidence by the management in the company's future prospects.
Long-term impact: Over the long term, increased liquidity might attract more institutional investors. If Deckers Brands continues its strong financial performance, the stock split could enhance the stock's appeal by making it easier to buy and sell shares, potentially leading to more stable and gradual price appreciation.
Overall, while the stock split doesn't alter the company's operations or financial health, it can be a strategic move to broaden the investor base and improve marketability.
From a market perspective, Deckers Brands' decision to proceed with a six-for-one stock split is a strategic move that aligns with its recent market performance. Stock splits are often used by companies with high share prices to make their stocks appear more affordable without affecting the underlying value of the company. This can attract more retail investors who might be deterred by higher share prices.
Deckers Brands has experienced significant stock price growth and the split should enhance liquidity by increasing the number of shares available for trading. Higher liquidity often results in tighter bid-ask spreads, making it easier for investors to enter and exit positions without significant price impact.
However, investors should note that while a stock split can improve the marketability of a stock, it doesn't inherently improve the company's fundamentals. It's important to keep an eye on Deckers' financial performance and growth strategies post-split to gauge long-term value.
The stock split and the authorized share increase are subject to stockholder approval of an amendment to the Company’s Certificate of Incorporation and the filing of the amendment with the Secretary of State of the
“The trading price of our common stock has risen significantly over the past several years as a result of our strong financial performance and the execution of our strategic plan. We believe effecting the forward stock split will make the shares of our common stock more affordable and attractive to a broader group of potential investors, including our employees, and increase the liquidity of the trading of the shares of our common stock,” said Dave Powers, President and Chief Executive Officer.
Following stockholder approval, and the filing and effectiveness of the charter amendment, every one share of common stock outstanding on September 6, 2024, the record date for the stock split, will be split into six shares of common stock, and every one share of preferred stock will be split into six shares of preferred stock. There are currently no shares of preferred stock outstanding. The additional shares will be distributed after market close on September 16, 2024.
Subject to final approval by the New York Stock Exchange, trading is currently expected to begin on a post-stock split adjusted basis at market open on September 17, 2024.
About Deckers Brands
Deckers Brands is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. The Company’s portfolio of brands includes UGG®, HOKA®, Teva®, Sanuk®, Koolaburra®, and AHNU®. Deckers Brands products are sold in more than 50 countries and territories through select department and specialty stores, Company-owned and operated retail stores, and select online stores, including Company-owned websites. Deckers Brands has over 50 years of history building niche footwear brands into lifestyle market leaders attracting millions of loyal consumers globally. For more information, please visit www.deckers.com.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in connection with the proposal to approve the charter amendment and effect the stock split and the authorized share increase to be submitted to the Company’s stockholders at the 2024 annual meeting. This press release does not contain all the information that should be considered by Company stockholders concerning this proposal and is not intended to form the basis of any voting decision in respect of this proposal. In connection with this proposal and the other matters to be considered at the 2024 annual meeting, the Company plans to file a definitive proxy statement on Schedule 14A with the SEC. Once available, stockholders and other interested persons are encouraged to read the definitive proxy statement and other relevant documents filed with the SEC. Investors and other interested parties will be able to obtain the proxy materials free of charge on the Company’s investor relations website, www.ir.deckers.com, or on the SEC’s website, www.sec.gov.
Participants in the Solicitation
The Company and its directors and executive officers may be deemed participants in the solicitation of proxies from the Company’s stockholders with respect to the proposal to approve the charter amendment and effect the stock split and the authorized share increase. Information regarding the directors and executive officers, including a description of their interests in the Company, can be found in the Company’s proxy materials to be filed in connection with the 2024 annual meeting, which will be available free of charge on the websites indicated above.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Forward-looking statements represent our management’s current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements, including the risk that stockholders will not approve the increase in the number of authorized shares of our common stock and preferred stock, the stock split is prevented from taking effect or is delayed due to legal or regulatory constraints and other risk factors described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, as well as in our Quarterly Reports on Form 10-Q and other filings with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law or the listing rules of the New York Stock Exchange, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.
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Investor Contact:
Erinn Kohler | VP, Investor Relations & Corporate Planning & Business Analytics | Deckers Brands | 805.967.7611
Source: Deckers Brands
FAQ
What is the date for DECK's six-for-one forward stock split?
Why is Deckers Brands implementing a six-for-one forward stock split?
When will DECK stockholders vote on the proposed stock split?
What will happen to DECK shares if the stock split is approved?
How will the DECK stock split affect trading?
