Deckers Brands Stock Surges on Strong Earnings and Popular Brands

Key Takeaways

• Deckers Brands (DECK) saw its stock surge after reporting earnings that surpassed expectations.
• Sales of popular brands like Hoka and Uggs drove the company’s revenue beat.
• The company is undergoing a CEO change and shareholders will vote on a potential stock split.

Deckers Brands (DECK) shares experienced a significant surge in value following the release of the company’s earnings report. Sales for its popular brands, Hoka and Uggs, jumped 30% and 14% respectively compared to the same period last year.

In the first quarter of fiscal 2025, Deckers reported $825.3 million in sales, a 22% increase from $675.8 million the previous year. These figures exceeded analysts’ expectations, according to estimates compiled by Visible Alpha. Net income for the company reached $115.63 million, more than double the $55.25 million reported in the first quarter of the previous year. Earnings per share rose to $4.52 from $2.41, surpassing analysts’ projections of $3.51.

Popularity of Hoka and Uggs Boosts Sales

Hoka running shoes and Uggs accounted for over 93% of Deckers’ quarterly sales, amounting to $768.2 million. However, sales of the company’s other brands, such as Teva and Sanuk, declined compared to the previous year.

Deckers experienced strong sales across all channels, including direct-to-consumer (DTC), wholesale, U.S., and global sales. All four categories saw an increase of at least 20% in the quarter.

Upcoming CEO Change and Possible Stock Split

Deckers Brands is set to undergo changes later this year, with a new CEO taking over next week and a proposed stock split to be voted on by shareholders in September.

In February, the company announced that CEO Dave Powers would retire on August 1, with Chief Commercial Officer Stefano Caroti stepping into the top executive position. This change in leadership aims to drive the company’s continued success.

The company’s board recently approved a 6-for-1 stock split, which will be voted on by shareholders at the annual meeting in September. If approved, the split will take place after markets close on September 16, with the stock opening at its split-adjusted price the following day.

Following the release of the earnings report, Deckers shares surged over 12% in pre-market trading, reaching $944.47.

Deckers Brands continues to demonstrate strong performance, driven by the popularity of its brands like Hoka and Uggs. With the upcoming CEO change and potential stock split, the company is positioning itself for further growth and success in the footwear industry.

Read the original article on Investopedia.