Deckers Outdoor Corporation Surpasses Earnings and Revenue Estimates
- Earnings Per Share (EPS) of $4.95, significantly exceeding the estimated Zacks Consensus Estimate.
- Revenue reported at approximately $959.76 million, surpassing forecasts and indicating a strong market presence.
- Future Growth with a revenue growth projection of approximately 10% for the fiscal year 2025.
On Thursday, May 23, 2024, Deckers Outdoor Corporation (NYSE:DECK) reported its earnings after the market closed, showcasing a significant outperformance that caught the attention of investors and market analysts alike. The company, renowned for its popular footwear brands such as Ugg and Hoka, announced an earnings per share (EPS) of $4.95, which not only surpassed the estimated EPS of $2.97 but also exceeded the Zacks Consensus Estimate of $2.82 per share. This remarkable achievement represents an earnings surprise of 75.53%, marking the fourth consecutive quarter where DECK has outperformed consensus EPS estimates.
The revenue figures for the quarter were equally impressive, with DECK reporting approximately $959.76 million, beating both the forecasted revenue of about $888.49 million and the Zacks Consensus Estimate by 9%. This revenue performance indicates a significant increase from the $791.57 million reported in the same period last year, highlighting DECK's strong market presence and the growing consumer demand for its products. The company's ability to consistently exceed revenue expectations for four consecutive quarters underscores its robust financial health and operational efficiency.
Deckers' success in the fourth quarter is attributed to substantial sales increases across its two major shoe brands, Hoka sneakers and Ugg boots. The resurgence of Ugg boots and the rising popularity of Hoka sneakers have played a pivotal role in driving the company's revenue and earnings growth. Following the announcement of these stellar financial results, DECK's stock experienced a rally, surging more than 7% in after-hours trading. This positive market reaction reflects investors' confidence in Deckers' growth trajectory and its ability to maintain a competitive edge in the Zacks Retail - Apparel and Shoes industry.
For the fiscal year 2024, ending on March 31, 2024, Deckers Brands reported a significant revenue increase of 18%, reaching a new high of $4.29 billion. The diluted EPS saw a remarkable rise of 51%, setting another record at $29.16. Under the leadership of Dave Powers, President and Chief Executive Officer, DECK has maintained its trajectory of profitability and growth, attributing its success to the strong performance and market positioning of its HOKA and UGG brands. The company's forward-looking statements include a revenue growth projection of approximately 10% for the fiscal year 2025, with an EPS range forecasted to be between $29.50 and $30.00.
Deckers Outdoor Corporation's financial metrics further illustrate its strong market position and investor appeal. With a price-to-earnings (P/E) ratio of approximately 32.08, investors demonstrate their willingness to pay a premium for DECK's earnings, reflecting optimism about the company's future growth prospects. The price-to-sales (P/S) ratio of about 5.64 and an enterprise value-to-sales (EV/Sales) ratio of approximately 5.30 indicate the market's high valuation of DECK's sales. Additionally, the company's conservative approach to leveraging, as shown by a low debt-to-equity (D/E) ratio of 0.13, and its ability to meet short-term liabilities with its short-term assets, evidenced by a current ratio of approximately 2.86, further solidify its financial stability and operational efficiency.
| Symbol | Price | %chg |
|---|---|---|
| NKE.BA | 7840 | -0.51 |
| 7936.T | 2564 | 0 |
| 241590.KS | 7880 | 3.55 |
| METROBRAND.NS | 1345.85 | 0 |
Deckers Shares Jump 9% on Q4 Beat
Deckers Brands (NYSE:DECK) reported a substantial earnings beat for its fourth fiscal quarter, sending its shares up by nearly 9% in pre-market today. The company announced an adjusted EPS of $4.95 for the quarter, significantly higher than the analyst estimate of $2.90. Revenue also outperformed expectations, reaching $959.8 million compared to the Street estimate of $885.04 million.
This strong quarterly performance was driven by a 21.2% increase in net sales year-over-year, with the HOKA brand experiencing a 34.0% surge in sales. The UGG brand also contributed to the overall growth with a 14.9% increase in sales.
Deckers' President and CEO, Dave Powers, attributed the record results to the company's commitment to profitability and the strong market position of its brands. He emphasized the motivation of their talented teams to pursue long-term opportunities for these iconic brands.
Looking ahead, Deckers provided a positive outlook for the fiscal 2025, projecting revenue growth of approximately 10% to $4.7 billion, slightly above the analyst consensus of $4.69 billion. The company expects an adjusted EPS in the range of $29.50 to $30.00, reflecting continued confidence in its operational performance.
CFO Steve Fasching highlighted the consistent double-digit revenue growth over the past four years and a more than threefold increase in earnings per share, underscoring the strong demand for Deckers' brands and the effectiveness of its operating model.
BTIG Reiterates Buy Rating on Deckers Ahead of Earnings Report
BTIG analysts reaffirmed their Buy rating and a $1,020 price target for Deckers Outdoor’s (NYSE:DECK) stock, ahead of the company’s Q4 results on May 23.
The analysts expect Q4 results to surpass consensus estimates, with ongoing strong performance for both HOKA and UGG. Despite concerns about a potential slowdown for HOKA during the quarter, the analysts attribute any issues to launch calendar timing rather than a decrease in demand.
For UGG, continued momentum is anticipated, with Q4 benefits from key holiday styles and successful seasonal styles. While management may offer conservative guidance for 2025, potentially below consensus, the analysts believe the market is prepared for this and would view any weakness as a buying opportunity.
Deckers Stock Surges 13% Following Q3 Results
Deckers Outdoor (NYSE:DECK) shares soared over 13% intra-day today following the announcement of fiscal third-quarter results that outperformed expectations, leading the company to uplift its full-year forecast.
The footwear company reported third-quarter earnings per share (EPS) of $15.11, significantly surpassing the consensus estimate of $11.40. Its revenue for the quarter was $1.56 billion, exceeding analyst predictions of $1.44 billion.
Deckers' direct-to-consumer (DTC) net sales for the quarter reached $858.1 million, marking a 22.7% increase year-over-year and surpassing the expected $699.3 million. Comparable DTC sales also saw a significant rise of 21.8%.
Wholesale net sales grew by 8.6% year-over-year to $702.2 million. Additionally, the gross margin improved to 58.7%, up from 53.0% in the same period the previous year.
For the full fiscal year, Deckers now anticipates an EPS in the range of $26.25 to $26.50, higher than the consensus estimate of $24.24. The company's revenue expectation for 2024 is set at approximately $4.15 billion, which is above the Wall Street forecast of $4.10 billion.
Deckers Brands Stock Surges 10% Following Strong Q2 Earnings
Following their Q2 results, Deckers Brands (NYSE:DECK) shares soared over 10% in pre-market today. They reported an EPS of $6.82, surpassing the projected $4.40.
Revenue increased 24.7% year-over-year, reaching $1.09 billion and outpacing the anticipated $960.62 million. Direct-to-consumer sales jumped 38.8% to $331.7 million, and wholesale sales climbed 19.4% to $760.2 million.
CEO Dave Powers attributed the impressive figures to robust demand for their HOKA and UGG brands, leading to record earnings and revenue for both Q2 and the first half of fiscal 2024.
For 2024, Deckers anticipates an EPS between $22.90 and $23.25 and revenue around $4.025 billion, both exceeding Street estimates of $22.62 and $4.01 billion respectively.
Deckers Brands Reports Q1 Beat, But Shares Fall
Despite reporting better-than-expected Q1 earnings, Deckers Brands (NYSE:DECK) shares fell around 2% in pre-market today.
In Q1, the company's EPS exceeded expectations, coming in at $2.41 compared to the Street estimate of $2.13. Furthermore, revenue showed solid growth, reaching $676 million, a 10% increase compared to the Street estimate of $661.28 billion.
Wholesale net sales for the quarter amounted to $425.4 million, slightly lower than the $429.4 million reported in the same period last year. However, Direct-to-Consumer (DTC) net sales demonstrated remarkable growth, surging 35.3% year-over-year to $250.4 million.
Looking ahead, the company anticipates full-year EPS for 2024 to fall within the range of $21.75 to $22.25, compared to the Street estimate of $22.21. Net sales are now projected to be approximately $3.980 billion.
Deckers Outdoor’s Price Target Raised at Citi
Citi increased its price target on Deckers Outdoor (NYSE:DECK) to $665.00 from prior $515.00 while keeping its Buy rating on the stock unchanged. They expect a strong Q1/24 earnings beat on July 27, with an estimated EPS of $2.59, compared to the Street estimate of $2.13.
The analysts anticipate improved Hoka DTC sales and higher gross margin. Additionally, they expect management to raise fiscal 2024 sales guidance to low-double-digit growth and adjust EPS accordingly. Citi's 2024 of $23.01 is above the Street estimate of $21.97 due to strong Hoka sales and GM outlook.
