DECK - Why Deckers Stock Jumped Today
2024-07-26 12:47:17 ET
Shares of shoe company Deckers Outdoor (NYSE: DECK) jumped on Friday after the company reported financial results for its fiscal first quarter of 2025 -- the period that ended in June. In short, sales are up, profits are surging, and management increased its full-year forecast, which is why Deckers stock was up 8% as of 11:15 a.m. ET.
Deckers owns various shoe brands including its big two brands, Hoka and Ugg. Net sales for both of these brands were up in Q1, leading to overall revenue growth of 22%. The company's Q1 gross margin of nearly 57% was up sharply from a gross margin of just north of 51% in the prior-year period. And this major improvement led to strong bottom-line profitability.
Deckers had Q1 diluted earnings per share (EPS) of $4.52 compared with diluted EPS of $2.41 in the same quarter of last year. And this profitability is clearly better than what management had expected. Previously it thought it could earn up to $30 per share in its fiscal 2025. But after reporting Q1 results, it now believes it could earn up to $30.65 per share for the year.
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Why Deckers Stock Jumped Today