Shares of Deckers Outdoor (DECK) are up 8% after the shoemaker reported better-than-expected fourth-quarter financial results and announced a new chief executive officer (CEO).
The company, which makes popular brands such as Hoka running shoes, Teva sandals and Ugg casual footwear, reported earnings per share (EPS) of $15.11 U.S., beating consensus estimates of $11.40 U.S.
Revenue in the final quarter of last year totaled $1.56 billion U.S., which was ahead of Wall Street forecasts of $1.44 billion U.S.
Both the earnings and revenue were record amounts for the company.
Deckers continues to expand its direct-to-consumer (DTC) sales channel, reporting $858.10 million U.S. in sales from DTC, up 22.7% year-over-year.
The DTC result topped the estimated $699.30 million U.S. that analysts expected in Q4 2023.
Wholesale sales increased 8.6% from a year earlier to $702.2 million U.S, and the company’s gross margin rose to 58.7% from 53% a year earlier.
Looking forward, Deckers management team forecast full-year EPS of $26.25 U.S. to $26.50 U.S, which is above the $24.24 U.S. that analysts had penciled in for the company.
Revenue this year is estimated to be around $4.15 billion U.S. compared to $4.10 billion U.S. expected on Wall Street.
Deckers also announced as part of its earnings that current president and CEO Dave Powers is retiring on Aug. 1 of this year and will be succeeded by Stefano Caroti, who is currently the company’s Chief Commercial Officer.
Powers is expected to continue serving as a member of the company's board of directors through the 2025 annual meeting.
Caroti has worked at Deckers for a decade and previously held senior executive positions at Nike (NKE).
Before today (Feb. 2), the stock of Deckers Outdoor had risen 83% over the last 12 months to trade at $772.85 U.S. per share.
