Deckers earnings beat analyst expectations
Goleta-based footwear and apparel company Deckers Brands reported an 8 percent increase in its second quarter revenue Oct. 24, beating analyst expectations with $2.71 in earnings per share.
The company also announced the appointment of a new chairman to its board of directors, board member and former CFO of Coach Inc., Mike Devine. Former chairman John Gibbons will remain on the board.
Net income rose 4.6 percent compared to the prior second quarter to $77.8 million on $542.2 million in net sales. Margins also edged up, delivering $273 million in gross profit, offset by a 9 percent increase in selling, general and administrative expenses to $175.9 million.
The results beat analyst estimates of $529 million in revenue and earnings per share of $2.33. Deckers increased its full-year earnings guidance by $15 million, saying it expected sales of $2.115 billion to $2.14 billion, around 5 percent higher than its prior year results. The expectations price in a more than 40 percent increase in sales for its growing Hoka One One line of cushioned running shoes.
Shares rose more than 1 percent ahead of the announcement Oct. 24 to $156.02 and continued to rise in after-hours trading.
The forecast reflects “the acceleration we are seeing in the Hoka brand, while at the same time maintaining expectations for the UGG brand heading into the peak selling season,” said CEO and President Dave Powers.
The company planned to launch “targeted marketing investments” in the coming quarter, he added.
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