Deckers Outdoor Corp (DECK) reported better-than-expected third-quarter financial results and issued guidance, causing its shares to trade higher in Thursday’s after-hours session. The company’s strong performance can be attributed to several factors, including impressive earnings, revenue growth, and increased sales of its HOKA brand.
Deckers reported third-quarter earnings of $15.11 per share, surpassing the Street’s estimate of $11.48. This represents a significant increase of 44% compared to earnings of $10.48 per share in the same period last year. Additionally, the company’s revenue of $1.560 billion exceeded analyst estimates of $1.448 billion, marking a growth of 16.0% compared to $1.346 billion in the same period last year.
Among Deckers’ brands, the HOKA brand stood out with net sales increasing by 21.9% to $429.3 million, compared to $352.1 million year-over-year. This highlights the success of the brand and its ability to resonate with consumers. Furthermore, the company’s gross margin for the quarter was 58.7%, an improvement from 53.0% year-over-year.
Looking ahead, Deckers provided guidance for full-year 2024 adjusted earnings between $26.25 and $26.50 per share, along with revenue of approximately $4.15 billion. The company also expects a gross margin of approximately 54.5%. These projections demonstrate the company’s confidence in its future growth prospects.
Deckers’ strong performance can be attributed to various factors, including increased awareness of its brands, strong consumer connections, and innovative product offerings. The company’s focus on the direct-to-consumer channel, as well as full-price selling, has also contributed to its success.
Dave Powers, the president and CEO of Deckers, expressed his satisfaction with the company’s performance, stating, “Our brands delivered Deckers’ largest quarter in history, with record revenue and earnings.” He attributed this success to the exceptional performance of both the HOKA and UGG brands, driven by the DTC channel and high levels of full-price selling.
In addition to its financial results, Deckers also announced a leadership change. The CEO will retire, effective August 1, and Stefano Caroti will assume the role of president and CEO. This transition is expected to bring fresh perspectives and strategic direction to the company.
In response to the positive news, shares of Deckers rose 4.87% to $810.50 in the after-hours session. This indicates investor confidence in the company’s future prospects and its ability to deliver strong financial performance.
Overall, Deckers Outdoor Corp’s better-than-expected earnings and revenue growth, particularly in its HOKA brand, demonstrate the company’s ability to thrive in a competitive market. With a solid financial outlook and a new CEO taking the helm, Deckers is well-positioned for continued success in the future.
