The stock of Deckers Outdoor (DECK) is up 14% after the company behind Hoka running shoes and UGG boots reported third-quarter financial results that blew past Wall Street forecasts.
The California-based shoemaker announced earnings per share (EPS) of $1.59 U.S., which was up 39% from a year earlier and ahead of the $1.24 U.S. expected among analysts.
Revenue in the quarter totaled $1.31 billion U.S., which surpassed the $1.20 billion U.S. that had been anticipated on Wall Street. Sales increased 20% year-over-year.
Deckers Outdoor also reported that its gross margin improved to 55.9% in Q3 from 53.4%. The company saw strong growth across its two main brands, Hoka and UGG.
Sales of Hoka running shoes rose 34.7% year-over-year to $570.9 million during the July through September period. Sales of UGGs increased 13% from a year ago to $689.9 million U.S.
Management said that direct-to-consumer sales, which primarily come from its website, rose 19.9% to $397.7 million during Q3, while wholesale sales grew 20.2% to $913.7 million U.S.
Looking ahead, the company raised its full-year guidance, saying it now expects revenue of $4.80 billion U.S. and earnings of $5.15 U.S. to $5.25 U.S. per share.
Prior to today (Oct. 25), Deckers Outdoor’s stock had risen 35% this year to trade at $152.04 U.S. per share.
The company underwent a six-for-one stock split in September of this year.