Deckers Brands (NYSE: DECK), a global leader in designing, marketing and distributing innovative footwear has received stockholder approval for a six-for-one stock split, announced in the annual meeting on September 9, 2024.

Shareholders on record as of September 6, 2024 will see their holdings increase proportionally when the additional shares are distributed after the market’s closure on September 16, 2024.

The closing price of one share of DECK was $937.68 on September 16. Trading is expected to begin post-stock split-adjusted at market open on September 17, 2024. When the trading starts on September 17, DECK share is likely to trade around $156, almost 80% lower than the previous day’s close. However, the shareholder’s value will not change.

A stock split increases the number of shares in the company without affecting shareholder equity and dilutes present shareholders’ ownership interests. For example, if a company announces a two-for-one stock split and you buy 100 shares for $100 each, you will instantly own 200 shares for $50 each. If the company declares a dividend, your dividends per share will decrease accordingly.

Deckers Brands is listed on NYSE and has run up 77% over the last 12 months after rising 40% YTD.

Deckers Brands’ management opted for a stock split due to a significant increase in the trading price of their common stock due to their strong financial performance. Stock splits have no impact on the value of shareholders’ investments other than making the shares more affordable, attractive to a wider investor base, and increasing liquidity.

Deckers Brands’ first quarter fiscal 2025 financial review (compared to the same period last year) shows the company’s net sales increased 22.1% to $825.3 million compared to $675.8 million. During the first fiscal quarter, the Company repurchased approximately 177 thousand shares of its common stock for a total of $152.0 million at a weighted average price paid per share of $858.79. As of June 30, 2024, the Company had approximately $789.7 million remaining under its stock repurchase authorization.

The Company’s portfolio of brands includes UGG, HOKA, Teva, Sanuk, Koolaburra, and AHNU. Deckers Brands products are sold in more than 50 countries.