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Key Takeaways
- Footwear company Deckers Brands saw its stock surge Friday, a day after reporting results that surpassed analysts’ expectations.
- Rising sales of popular brands like Hoka and Uggs powered the footwear company’s revenue beat.
- The company has a CEO change coming up next week, and shareholders are set to vote on a potential stock split at the company’s annual meeting in September.
Deckers Brands (DECK) shares surged Friday, a day after the footwear company released earnings that showed sales for its popular brands Hoka and Uggs jumped 30% and 14%, respectively, compared to the same time last year.
Deckers reported $825.3 million in sales for the first quarter of fiscal 2025, up just over 22% from $675.8 million a year ago, and above analysts’ expectations, according to estimates compiled by Visible Alpha.
The company earned $115.63 million in net income, more than double the $55.25 million it reported in the first quarter last year and topping projections. Earnings per share at $4.52 rose from $2.41 last year, and came in a dollar above the $3.51 analysts had expected.
Popularity of Hoka, Uggs Boost Sales
Sales of Hoka running shoes and Uggs made up just over 93% of the company’s quarterly sales at $768.2 million, while sales of Deckers’ other brands like Teva and Sanuk declined compared to last year.
Much like it reported in May, Deckers had a strong quarter of sales across channels, as all four categories of sales including direct to consumer (DTC), wholesale, U.S., and global sales all increased by at least 20% in the quarter.
Upcoming CEO Change, Possible Stock Split
The company and its stock are set to undergo some changes later this year, as a new CEO steps in next week and shareholders will vote on a proposed stock split in September.
In February, Deckers announced that CEO Dave Powers would retire on Aug. 1, with current Chief Commercial Officer Stefano Caroti set to take over the top executive position going forward.
Earlier this month, the company’s board announced the approval of a 6-for-1 stock split, and said a proposal to approve the split will be voted on by shareholders at the company’s annual shareholder meeting in September. If approved by shareholders, the company said the split would take place after markets close Sept. 16, with the stock opening at its split-adjusted price the next day.
Deckers shares were up over 12% at $944.47 in pre-market trading Friday following the company’s earnings release after the bell Thursday.