Deckers Outdoor ( NYSE: DECK ) shares drove over 5% higher in Thursday’s extended session after posting a strong earnings and predicting continued strength in fiscal 2023.
For its fiscal first quarter, the company notched GAAP EPS of $1.66, a hefty $0.41 above the analyst consensus. Meanwhile, a 21.8% jump in revenue came in $46.14M above expectations. The stronger-than-expected profits were arrived at despite a 360 basis point decline in gross margins.
"Fiscal year 2023 is off to a solid start, with HOKA driving strong growth, propelling the brand to eclipse the billion-dollar milestone over the trailing twelve-month period," CEO Dave Powers said. "The HOKA brand's speed to achieve this feat is exciting, especially as the brand's increasing penetration to our portfolio benefits Deckers' overall quarterly financial and operational performance.”
He added that a bolstered share buyback plan should serve as a sign of confidence from management about further upside for the stock. In total $1.2B was authorized toward the new share repurchase program.
Echoing that optimism, the full year EPS guide was hiked to a range of $17.50-$18.35, up from the range $17.40 to $18.25 forecast during the company’s fourth quarter earnings in May. Meanwhile, revenue growth of 10 to 11% and operating margin of 17.5 to 18.0% guides were reiterated for the full year.
Read more on the details of the quarter .
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Deckers Outdoor stock drives higher on earnings beat, raised guide