Shoemaker Deckers Outdoor (DECK) has reported financial results that beat Wall Street forecasts on the top and bottom lines.
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Deckers, which makes Ugg boots and Hoka running shoes, reported earnings per share (EPS) of $0.96, which was 13 cents better than the $0.83 consensus expectation of analysts. Revenue in the year’s first three months totaled $1.12 billion, which came out ahead of the $1.09 billion expected on Wall Street.
Looking ahead, Deckers Outdoor said it expects full-year earnings of $7.30 to $7.45 per share. That was ahead of the $7.34 guidance issued among analysts. The company forecasts revenue this year of $5.86 billion to $5.91 billion, ahead of the $5.82 billion consensus on Wall Street.
Deckers’ revenue by segment. Source: The Fly
Deckers’ Strong Brands
Deckers Outdoor also reported a gross profit margin of 57.6%, which was ahead of the 56.7% posted a year earlier. Among segments, Hoka’s net sales increased 14.5% to $671.2 million in the latest quarter. Ugg’s net sales rose 9.2% to $408.6 million.
The company’s international sales grew 25.5% to $469.5 million, while domestic U.S. sales were largely flat during the period. During an earnings call with analysts and media, Deckers announced that its board of directors increased the company’s stock buyback authorization by $3.5 billion to $5 billion.
DECK stock has declined 17% over the last 12 months.
Is DECK Stock a Buy?
Deckers Outdoor stock has a consensus Moderate Buy rating among nine Wall Street analysts. That rating is based on five Buy and four Hold recommendations issued in the last three months. The average DECK price target of $126.88 implies 24% upside from current levels. These ratings could change after the company’s financial results.
