Deckers Outdoor gains 11.50% driven by 20% sales growth 📌

17:40 25 October 2024

Deckers Outdoor Corp (DECK.US) initially surged by even 13% (now +11.30%) after the company reported strong fiscal Q2 earnings, with net sales rising 20% year-over-year to $1.31 billion, surpassing analysts' consensus of $1.2 billion. The growth was driven by robust demand for Hoka and UGG brands, with Hoka sales up nearly 35% and UGG up 13%. This positive momentum led Deckers to raise its full-year guidance, now forecasting $4.8 billion in net sales with an adjusted EPS of $5.15 to $5.25.

Financial summary:

  • Net Sales: $1.31 billion (+20% YoY), above estimate of $1.2 billion.
    • Hoka Sales: $570.9 million (+35% YoY), above estimate of $517.7 million.
    • UGG Sales: $689.9 million (+13% YoY), above estimate of $634.4 million.
    • Teva Sales: $22 million (+2.3% YoY).
    • Sanuk Sales: $2.8 million (-48% YoY).
  • Gross Margin: 55.9%, up from 53.4% YoY, estimate was 52.1%.
  • Wholesale Sales: $913.7 million (+20% YoY), above estimate of $823.2 million.
  • Adjusted EPS: $1.59, well above consensus estimate of $1.2.
  • Full-Year Net Sales Guidance: Raised to $4.8 billion.
  • Full-Year Adjusted EPS Guidance: $5.15-$5.25.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

Management highlighted Deckers’ expanding innovation pipeline and international growth potential, particularly for Hoka and UGG. Despite projecting a seasonal slowdown in the latter half of the fiscal year, the company anticipates ongoing strength from new product launches and increased market presence abroad. Notably, the raised gross margin forecast of 55% to 55.5% reflects disciplined distribution and strong full-price sales momentum across brands, positioning Deckers for continued growth in a competitive footwear market.

Price Chart (D1 interval)

The company's market capitalization is up by 11.50% today, making it the second-highest gainer in the S&P 500 index, following Tapestry (+14.40%). The stock price has risen to $170, close to its historical all-time high reached before the 6:1 stock split.

 

Source: xStation 5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back

Join over 1 Million investors from around the world