:max_bytes(150000):strip_icc()/GettyImages-2216752419-9b2854aa9e234c90820f52d1d442493f.jpg "The Stock Price of Hoka and UGG Maker Deckers Outdoor Is Soaring Today. Here’s Why.")
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Key Takeaways
- Deckers Outdoor stock soared Friday morning after the company reported strong quarterly results and issued a better-than-expected outlook.
- The company said it sees significant room for sales of its Hoka running shoes to continue growing as its fastest-growing brand.
A shoemaker’s stock is running to its highest point in months Friday.
Deckers Outdoor (DECK) shares surged 11% in early trading after the parent company of Hoka running shoes and UGG boots reported better fiscal third quarter results than expected.
Deckers said after the bell Thursday that it earned $3.33 per share on $1.96 billion in revenue, each topping estimates compiled by Visible Alpha. Sales of the Hoka and UGG brands increased 18% and 5%, respectively, from the same time a year ago.
The company also lifted its full fiscal year forecasts, expecting $5.4 billion to $5.425 billion in sales and EPS of $6.80 to $6.85, each range fully above the analyst consensus, Previously Deckers had projected full-year revenue of $5.35 billion and EPS of $6.30 to $6.39.
Why This Matters to Investors
Deckers faced concerns last year over the impact tariffs could have on prices, the company’s margins and consumer demand. Those concerns may have eased as the quarterly report shows strong sales growth.
Deckers CEO Stefano Caroti said the company sees “meaningful untapped global opportunities for HOKA,” with the ability to continue growing sales both in the U.S. and abroad as the brand’s distribution widens. Caroti said Deckers expects Hoka to continue being its fastest growing brand “with significant potential for international expansion and consistent progress in the US supported by effective marketplace management,” per an AlphaSense transcript.
A year ago, Deckers stock tumbled from record highs following an earnings report that included a disappointing outlook. Shares remained under pressure for much of the year amid concerns over the impact of tariffs on the shoe maker’s margins and customer demand.
Entering Friday, Deckers shares were down 55% in the last 12 months. With this morning’s big gain, the stock is trading at its highest level since September at $111, still a far cry from the record high above $220 set last January.
