Shares of Skechers and Hoka-maker Deckers rallied early Friday following their respective quarterly results. DECK stock cleared an entry opportunity. Elsewhere, rival On Holding leapt above a buy point.
Skechers reported earnings of $1.26 per share, up nearly 36% from last year, outpacing views for $1.16 per share. Revenue jumped 16% to a record $2.35 billion, also beating expectations for 14% growth.
Skechers noted a nearly 21% increase in wholesale revenue, while direct-to-consumer sales rose 9.6%.
The company guided Q4 sales of $2.165 billion to $2.215 billion, up from $1.96 billion last year. Skechers forecasts Q4 earnings will range from 70 cents to 75 cents per share, compared to 48 cents in 2023. However, the fourth-quarter outlook was short of FactSet estimates for 76 cents per share on $2.3 billion in sales.
The company's 2024 outlook, however, did surpass forecasts. Skechers expects full-year earnings between $4.20 and $4.25 per share on $8.925 billion to $8.975 billion in sales. Analysts predict earnings of $4.17 per share on $8.93 billion in revenue.
Skechers CFO John Vandemore in the earnings release said that the company was confident of reaching its goal of $10 billion in sales by 2026.
SKX stock closed with a 3.9% decline Friday. Shares rose about 2% in early trade after bolting 7% higher in Friday's premarket trade. Skechers rallied 20% this year through early June, then slipped back into a consolidation.
Still, Skechers stock is down about 5% for the year.
Hoka Sales Fuel Deckers Beat
Hoka maker Deckers Brands also cleared expectations for its fiscal Q2 2025 results after the bell Thursday.
Deckers earnings increased 39% to $1.59 per share, topping views for $1.24 per share. Revenue jumped 20% to $1.31 billion, while analysts expected $1.2 billion.
Hoka brand sales soared nearly 35% to $570.9 million. UGG sales rose 13% while Teva brand sales ticked up 2.3%. Sanuk net sales tumbled almost 48% to $2.8 million.
Deckers guided to a 12% increase in 2025 sales, to $4.8 billion, with earnings ranging from $5.15 per share to $5.25 per share, up from $4.86 per share last year. Consensus of analysts polled by FactSet is 2025 earnings of $5.36 per share on $4.83 billion in sales.
Deckers jetted 10.6% higher Friday. The stock climbed 66% for the year through early June, then swung down into a consolidation. It has been trying to start up the right side of a base since early August, but fell back this week to retest support at its rising 40-week moving average.
On Friday's move, Deckers shares rebounded back above their 10-week line, and above the early October high of 167.23. The break above that high represents an early buying opportunity.
As of Friday's close, shares of the Hoka maker were up almost 51% in 2024.
Separately, Hoka rival On Holding also flashed a buy signal. The Swiss athletic shoe maker jumped more than 6.4%, making a decisive move above the 50-day line and breaking a downtrend in a an emerging new consolidation.
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