Investing.com -- Shares in Deckers Outdoor Corporation (N:DECK) surged nearly 15% in after-hours trading, after the maker of UGG boots, handily beat analysts' forecasts with its quarterly earnings and revenues on Thursday afternoon.
For the company's second quarter of 2016, which ended in late-September, Deckers saw its net sales increase 5.4% to $506.2 million on a constant currency basis, up from $480.3 million last year during the same period. The company's gross margin, meanwhile, fell to 44% from 46.6% in last year's second quarter, amid foreign currency translation losses from the dollar versus the pound, euro and yen.
Deckers also reported SG&A expenses as a percentage of sales of 33.5%, down from 34.2% over the same three-month period in fiscal year 2015. As a result, Deckers reported earnings per share of 1.11, above analysts' forecasts of 1.06 per share. Deckers also beat analysts' revenue forecasts of $485.3 million for the quarter.
"We delivered record second quarter revenue and continue to track towards achieving our financial objectives for the fiscal year," said Angel Martinez, Deckers Chief Executive Officer and Chair of the Board of Directors. "I'm very pleased with our current performance which wouldn't have been possible without the strategic investments we've made in key areas of the business over the past several years. From Omni-Channel capabilities and product innovation to marketing and people, we are in the process of transforming the company into a consumer centric, global brand operator positioned to deliver sustainable top-line growth and operating margin expansion."
In terms of UGG brand sales for the period, Deckers increased revenues by 0.9% to $421.1 million, up from $417.1 million a year earlier. For Deckers' third quarter, the company expects its revenues will increase by 11%, while its constant currency earnings per share will rise by 16% on an annual basis.
"The entire organization is energized as we begin what we believe will be an exciting new chapter in Deckers ongoing evolution," Martinez added.
Shares in Deckers jumped 7.72 or 14.85% to 59.70 in after-hours.