Deckers Brands (NYSE:DECK) shares have surged more than 10% premarket Friday after the company's latest quarterly earnings report garnered a positive reaction from both analysts and investors.
Deckers reported Q2 EPS of $6.82, $2.42 better than the analyst estimate of $4.40, while revenue for the quarter came in at a record $1.09 billion, up 25% YoY and above the consensus estimate of $960.62 million.
The company's "exceptional" sales performance was driven by the strength of demand for its HOKA and UGG brands. The company said it produced record revenue and earnings for Deckers in both the second quarter and first half of fiscal year 2024.
"Our team's ability to deliver compelling products that create emotional connections with consumers through engaging marketing campaigns differentiates our brands in a competitive marketplace," said Dave Powers, Deckers president and chief executive officer. "This, paired with our strategic approach to marketplace management, led by our DTC channel, remains paramount to the success of our brands and company."
DECK's UGG brand net sales increased by 28.1%, while HOKA sales rose by 27.3%. Elsewhere, its Teva net sales fell by 28.4%, alongside Sanuk sales, which decreased by 28.5%. Other brands, primarily composed of Koolaburra, net sales improved 7.2%
Looking ahead, Deckers sees FY2024 EPS from $22.90 to $23.25, versus the consensus of $22.62, with revenue for the period at $4.025B versus the consensus of $4.01B.