Deckers (NYSE:DECK) shares surged more than 11% intra-day today following the release of impressive second-quarter earnings that outpaced analyst expectations. The footwear company, known for its UGG and HOKA brands, also raised its full-year guidance, fueling investor optimism.
For the quarter, Deckers reported adjusted earnings per share of $1.59, surpassing the expected $1.23. Revenue climbed 20.1% year-over-year to $1.31 billion, exceeding the $1.2 billion forecast.
The HOKA brand led the charge, with sales soaring 34.7% to $570.9 million, while the UGG brand saw a solid 13% increase, reaching $689.9 million. Direct-to-consumer net sales rose 19.9% to $397.7 million, with comparable sales up 17%, reflecting robust demand across channels.
Deckers’ gross margin improved to 55.9%, up from 53.4% in the same period last year, driven by enhanced pricing strategies and a favorable product mix.
Looking forward, Deckers adjusted its fiscal 2025 outlook, now expecting revenue to grow approximately 12% to $4.8 billion, slightly below the $4.82 billion consensus. The company raised its EPS forecast to a range of $5.15 to $5.25, which is below the analysts’ expectations of $5.35.