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Shares of Deckers Brands (NYSE:DECK) are up over 6% in premarket Friday after the company delivered very strong results.
Earnings per share were reported at $1.66 to top the consensus of $1.25. Revenue soared 21.8% YoY to $614.5 million, again easily ahead of the average analyst estimate of $567.34 million. DECK reported YoY growth of 24.7% and 15.4% for wholesale and DTC net sales, respectively.
On a full 2023 basis, DECK expects to see EPS between $17.50-$18.35 with the midpoint of the guidance somewhere in line with the consensus of $17.98. Revenue is seen between $3.45 billion-3.5 billion, compared to the estimate of $3.49 billion
DECK said it increased its stock buyback program to $1.5 billion.
A Citi analyst said DECK delivered “another big beat”, fueled by Hoka outperformance.
“We continue to believe that DECK’s strong momentum and attractive brand portfolio can help the stock outperform despite a choppy macroeconomic environment,” he said.
A Stifel analyst hiked the price target to $367 from $339 to reflect “impressive HOKA momentum”.
“We are emboldened by 1) proof of HOKA momentum, 2) UGG brand relevance, and 3) balance sheet optionality underscored by the board authorization for an additional $1.2bn in share repurchases (total repo capacity ~19% of the market cap),” he wrote in a client note.
