Upbeat sales in Hoka, Ugg brands prompt a boost to outlook at Deckers

By Emily Bary

Deckers raises its profit forecast for the year and mentions 'robust full-price demand' for its Hoka and Ugg brands

Upbeat results from the Hoka and Ugg brands prompted Deckers Outdoors Corp. to boost its full-year profit outlook on Thursday.

The shoe company now expects $29.75 to $30.65 in earnings per share for the full fiscal year, while its prior forecast called for $29.50 to $30.00. Deckers (DECK) kept intact its sales outlook, which called for $4.7 billion.

For the fiscal first quarter that just wrapped up, Deckers logged net income of $115.6 million, or $4.52 a share, up from $63.6 billion, or $2.41 a share, in the year-earlier period. That was well above the $3.49 a share that analysts were modeling.

Shares of Deckers rose 10% in Thursday's aftermarket action.

Read: Skechers shares rise on $1 billion buyback, more upbeat outlook

Deckers booked a 22.1% rise in revenue for the latest quarter, coming in at $825.3 million. Analysts tracked by FactSet were looking for $808.4 million.

The company saw 29.7% growth in Hoka brand net sales, reaching $545.2 million. Revenue from the Ugg category rose 14.0% to $223.0 million. Deckers saw Teva brand sales fall 4.3% to $46.3 million.

The revenue from Hoka and Ugg topped expectations, which were for $536.6 million and $219.8 million, respectively. The consensus view on Teva was for $47.3 million in sales.

"Hoka and Ugg continue to drive robust full-price demand in the global marketplace by delivering compelling product that consumers love," said Dave Powers, the company's outgoing chief executive.

See also: Lululemon's stock gets a downgrade as spending on activewear slows further

-Emily Bary

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07-25-24 2012ET

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