Deckers Brands, the maker of the popular Hoka running shoes, sprinted past fiscal Q2 2024 estimates late Thursday. DECK stock leapt to record highs Friday. Rival Skechers reversed after an early morning surge following its earnings report.
Goleta, Calif.-based Deckers reported a 79% earnings increase to $6.82 per share, the fifth quarter of accelerating gains. Revenue spiked 25% to $1.09 billion, the best gain in six quarters.
Analysts polled by FactSet expected Deckers earnings of $4.43 per share on $961 million in revenue.
Direct-to-consumer sales jumped nearly 39% to $331.7 million while wholesale revenue increased 19.4% to $760.2 million.
Hoka brand sales climbed 27.3% to $424 million for the quarter. UGG boot sales rose 28.1% to $610.5 million. Teva and Sanuk brand sales both fell about 28%.
Inventories declined to $726.3 million from $925 million for the same period last year.
"The strength of demand for our Hoka and UGG brands continued to drive exceptional performance, producing record revenue and earnings for Deckers in both the second quarter and first half of fiscal year 2024," CEO Dave Powers said in the release.
For fiscal 2024, Deckers expects roughly 11% net sales growth to $4.025 billion. It sees full-year EPS of $22.90 and $23.25 per share, up from its prior range of $21.75 and $22.25 per share in its Q1 earnings beat. Deckers previously guided revenue increasing to $3.98 billion.
FactSet forecasts full-year earnings of $22.64 per share on $4.014 billion in sales.
DECK Stock
DECK stock rallied 18.9% Friday to an all-time high of $576.14. Shares of the Hoka bolted above their 50-day moving average and other technical lines at the open.
Shares fell 1.6% to 484.58 on Thursday, closing pennies above the 200-day line. Deckers stock is up more than 44.3% in 2023.
Skechers
Elsewhere, SKX stock reversed lower Friday after Skechers' Q3 results Thursday.
Skechers reported a 53% increase in adjusted earnings to 98 cents per share, beating Wall Street consensus for 79 cents. That's the third straight quarter of accelerating growth. Revenue rose almost 8% to a quarterly record $2.025 billion, a whisker below analyst views for $2.027 billion.
Direct-to-consumer revenue jumped 23.8% to $163.6 million while wholesale sales eased 1.4%.
Skechers guided fiscal 2023 earnings to $3.33-$3.43 per share on $7.95 billion-$8.05 billion in revenue. However, Wall Street forecasts $8.13 billion in sales with earnings of $3.42 per share.
SKX stock slid 1.4% Friday after surging 5% in the morning. Shares fell 2.5% to 46.78 on Thursday, the lowest close since early April. Skechers stock advanced about 10% in 2023.
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