Deckers Brands stock tumbles 14% despite beating Q3 expectations

Published 30/01/2025, 22:18
Deckers Brands stock tumbles 14% despite beating Q3 expectations

NEW YORK - Deckers Brands (NYSE:DECK) reported third-quarter fiscal 2025 results that surpassed analyst estimates, but its stock tumbled 14% in after-hours trading on Thursday.

The footwear company posted adjusted earnings per share of $3.00, beating the consensus estimate of $2.46. Revenue for the quarter came in at $1.83 billion, exceeding expectations of $1.7 billion and representing a 17.1% increase year-over-year.

Despite the strong quarterly performance, investors appeared to react negatively to the company’s guidance. Deckers raised its full-year earnings outlook to a range of $5.75 to $5.80 per share, compared to the previous analyst consensus of $5.64.

"Deckers posted exceptional results in the third quarter, delivering record quarterly revenue, gross margin, and earnings," said Stefano Caroti, President and Chief Executive Officer.

The company’s UGG brand saw net sales increase 16.1% to $1.244 billion, while HOKA brand net sales rose 23.7% to $530.9 million.

Gross margin improved to 60.3% from 58.7% in the same quarter last year. Operating income increased to $567.3 million from $487.9 million.

Deckers now expects full fiscal year 2025 net sales to increase approximately 15% to $4.9 billion, with gross margin projected to be at or slightly better than 57%.

The company repurchased approximately 275,000 shares during the quarter for a total of $44.7 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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