Deckers Outdoor (DECK) stock is up 10% in after hours trading following strong quarterly results from the shoemaker behind popular brands such as Hoka runners and UGG casual footwear.
The California-based company reported earnings per share (EPS) of $1.59, which was up 39% from a year earlier and well ahead of the consensus expectation among analysts of $1.24. Net sales in the year’s third quarter totaled $1.31 billion, which increased 20% year-over-year.
Deckers Outdoor also reported that its gross margin improved to 55.9% in Q3 from 53.4%. Owing to the strong results, the company raised its full-year Fiscal 2025 guidance. Deckers said it now expects revenue of $4.8 billion and earnings of $5.15 to $5.25 a share for the entire Fiscal year.
Growth Across Brands
Breaking down Deckers Outdoor’s financial results, the company reported strong growth across its main shoe brands. Sales of Hoka running shoes rose 34.7% year-over-year to $570.9 million. At the same time, sales of the UGG brand increased 13% from a year earlier to $689.9 million.
Management at Deckers Outdoor said that the company’s direct-to-consumer net sales, which primarily come from its website, rose 19.9% to $397.7 million during the quarter, while wholesale net sales grew 20.2% to $913.7 million.
Prior to these latest financial results being made public, DECK stock had risen 35% this year. The company undertook a six-for-one stock split in September of this year.
Is DECK Stock a Buy?
Deckers Outdoor has a consensus Moderate Buy rating among 19 Wall Street analyst. That rating is based on 10 Buy and nine Hold recommendations issued in the last three months. There are no Sell ratings on the stock. The average DECK price target of $175.82 implies 15.64% upside from current levels.
