Deckers Outdoor has reported impressive second-quarter results, surpassing expectations due to strong demand, and has raised its full-year sales forecast.
Brands like Hoka, UGG, New Balance, and the Federer-backed On are resonating well with consumers, particularly in the running category, and are gaining market share at the expense of giants like Nike.
According to Deckers’ financial report, Hoka’s sales grew nearly 35% in the second quarter, while UGG saw a 13% increase.
Dana Telsey, an analyst at Telsey Advisory Group, noted, “Deckers continues to perform strongly amid an uncertain macroeconomic environment, demonstrating that its robust market position and healthy brand portfolio can support sustained long-term growth.”
As retailers restock consumer-favorite products, Hoka has successfully launched in Dick’s Sporting Goods and Nordstrom.
Joseph Civello, an analyst with Truist Securities, commented, “The company is performing well in driving brand heat and increasing global brand awareness, with plans to ramp up marketing investments seen as a strategic move that should continue to support revenue growth.”
Deckers now anticipates a 12% increase in full-year sales, targeting $4.8 billion, up from a previous estimate of 10% growth to $4.7 billion.
Last quarter, net sales reached $1.31 billion, exceeding the expected $1.2 billion, while adjusted earnings per share stood at $1.59, surpassing the projected $1.23.
Looking ahead, Deckers is projected to have a price-to-earnings ratio of 25.95 for the next 12 months, compared to Nike’s 26.59 and On’s 43.62.
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