Deckers Brands Announces Stockholder Approval of Six-For-One Forward Stock Split and Proportionate Increase in Authorized Common Stock

Rhea-AI Summary

Deckers Brands (NYSE: DECK) announced stockholder approval of a six-for-one forward stock split and a proportionate increase in authorized common stock during its annual meeting on September 9, 2024. The amendment became effective on September 13, 2024. Every share of common stock outstanding on the September 6, 2024 record date will be split into six shares. Additional shares are expected to be distributed after market close on September 16, 2024, with trading on a post-split adjusted basis beginning at market open on September 17, 2024.

CEO Stefano Caroti stated that the split aims to make DECK stock ownership more affordable and attractive to a broader investor base, including employees. This move reflects the company's strategy to enhance stock liquidity and accessibility in the market.

Positive

• Stockholder approval for six-for-one forward stock split
• Potential increase in stock liquidity and accessibility
• Aim to attract a broader investor base, including employees

Negative

• None.

Financial Analyst

The approval of Deckers Brands' six-for-one stock split is a significant development that could potentially boost liquidity and accessibility for retail investors. While stock splits don't inherently change a company's value, they often lead to increased trading volume and can be seen as a sign of management's confidence in future growth. The split may also make options trading more accessible due to lower share prices.

However, it's important to note that stock splits don't directly impact a company's fundamentals or market capitalization. Investors should focus on Deckers' underlying business performance, including its popular brands like UGG and HOKA, rather than solely on the stock split. The increased number of shares might also facilitate future equity-based transactions or employee stock options programs.

Market Research Analyst

Deckers' decision to implement a stock split aligns with recent trends among high-performing companies aiming to attract a broader investor base. This move could potentially increase retail investor participation, which has been a growing force in the market. The timing suggests confidence in the company's trajectory, possibly driven by strong performance in its footwear brands.

The split may also improve Deckers' eligibility for inclusion in certain stock indices, which often have price-based criteria. This could lead to increased institutional ownership and potentially enhance long-term stock stability. However, investors should be aware that post-split price movements can be unpredictable in the short term due to increased speculation and trading activity.

Legal Expert

The stockholder approval and subsequent filing of the amendment to Deckers' Certificate of Incorporation ensure compliance with Delaware corporate law and SEC regulations. This process demonstrates proper corporate governance and transparency. The proportionate increase in authorized shares maintains the existing balance of voting power among shareholders.

It's important to note that while the split doesn't affect shareholders' proportional ownership, it may impact certain contractual obligations or agreements based on share count or price. Investors should review any equity-based contracts they may have. Additionally, the company must ensure timely and accurate disclosure of all material information related to the split to maintain regulatory compliance and investor trust.

GOLETA, Calif.--(BUSINESS WIRE)-- Deckers Brands (NYSE: DECK), a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, today announced that during its annual meeting held on September 9, 2024, its stockholders approved a six-for-one forward stock split, along with a proportionate increase in the number of authorized shares of its common stock.

“We are excited to announce stockholder approval of the six-for-one forward stock split, which we believe will make ownership of our stock more affordable and attractive to a broader group of investors, including employees,” said Stefano Caroti, President and Chief Executive Officer.

The Company filed an amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect the stock split and proportionate increase in the number of authorized shares of common stock. The amendment became effective upon filing on September 13, 2024.

As a result of the stock split, every one share of common stock outstanding on September 6, 2024, the record date for the stock split, was split into six shares of common stock. The additional shares of common stock are expected to be distributed after market close on September 16, 2024.

Trading is 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®, 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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the timing and impact of the stock split, including the distribution of additional shares to stockholders, and trading on a post-stock split basis. We have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “estimate,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or “would,” and similar expressions or the negative of these expressions.

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 are disclosed 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 Securities and Exchange Commission.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240913095482/en/

Investor Contact:

Erinn Kohler | VP, Investor Relations & Corporate Planning & Business Analytics | Deckers Brands | 805.967.7611

Source: Deckers Brands

FAQ

When will Deckers Brands (DECK) six-for-one stock split take effect?

The Deckers Brands (DECK) six-for-one stock split will take effect after market close on September 16, 2024, with trading on a post-split adjusted basis beginning at market open on September 17, 2024.

What is the record date for Deckers Brands (DECK) stock split?

The record date for the Deckers Brands (DECK) six-for-one stock split is September 6, 2024.

Why did Deckers Brands (DECK) decide to implement a stock split?

Deckers Brands (DECK) implemented the stock split to make ownership of their stock more affordable and attractive to a broader group of investors, including employees, potentially increasing stock liquidity and accessibility.

How many new shares will DECK stockholders receive in the stock split?

In the six-for-one stock split, DECK stockholders will receive five additional shares for every one share of common stock they held on the record date of September 6, 2024.