The stock of Deckers Outdoor (DECK) is up 10% after the shoemaker delivered financial results that beat Wall Street forecasts on the top and bottom lines.
The Goleta, California-based company reported earnings per share (EPS) of $4.52 U.S. per share, which surpassed consensus expectations of $3.46 U.S. The profit was up 87% from a year ago.
Revenue in what was the company’s fiscal first quarter totaled $825 million U.S., which topped Wall Street’s estimate of $805 million U.S. Sales were up 22% year-over-year.
Deckers Outdoor, which makes Hoka sneakers, Ugg boots and Teva sandals, also reported that its gross margin during the quarter rose to 56.9% from 51.3%.
Management said the strong results were largely driven by robust sales of its Hoka running shoes, which have become extremely popular, followed by its Ugg brand of footwear that is experiencing a resurgence among consumers.
The latest financial results come a week after Deckers Outdoor announced a six-for-one stock split that will take place on September 9 of this year following approval by shareholders at the company’s annual meeting.
The earnings report also arrives days after Chief Commercial Officer Stefano Caroti was elevated to the chief executive officer (CEO) role at the company.
In terms of guidance, Deckers Outdoor said it continues to expect revenue in the current fiscal year to rise 10% and reach $4.70 billion U.S.
The company’s full fiscal year earnings forecast was raised to $29.75 U.S. to $30.65 U.S. per share. That’s up from a previous estimate of $29.50 U.S. to $30.00 U.S. a share.
Prior to today (July 26), the stock of Deckers Outdoor had risen 50% over the last 12 months to trade at $841.50 U.S. per share.
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