Exterior decks (BRIDGE ) stock is trading near the top of the S&P 500 on Friday after the shoe giant beat revenue and net income expectations for its fiscal second quarter and raised its profit forecast for the whole year.
During the quarter ended September 30 Deckers’ revenue rose 20.1% year over year to $1.3 billion, driven by 34.7% growth in its Hoka brand to $570.9 million. of dollars. Its earnings per share (EPS) increased 39.5% year-over-year to $1.59.
The results far exceeded analysts’ expectations. Wall Street expected revenue of $1.2 million and earnings of $1.24 per share, according to CNBC .
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“These excellent results reflect the continued strength of our full-price demand, enabled by innovative products that resonate with consumers, disciplined global market management and thoughtful product segmentation,” said Stefano Caroti, CEO of Deckers, during the company’s conference call.
Deckers revenue growth of 21% in the first half fiscal year was driven by “HOKA up 32%, UGG up 13%, the overall international business up 28% and the company’s overall consumer (B2C) and wholesale trade, both growing by more than 20% compared to last year,” added Caroti.
Due to its outperformance in the first half, Deckers raised its outlook for the full year. The company now expects revenue to grow about 12% to $4.8 billion and EPS to be between $5.15 and $5.25.
“Our brands are well positioned for the holiday season and are on track to achieve better prospects for the entire financial year,” Caroti said.
Is Deckers stock a buy, sell or hold?
Deckers is also having a stellar year on the price chart, with shares up 53% since the start of 2024. And Wall Street thinks the consumer discretionary stocks has more space to run.
According to S&P Global Market Intelligence
Financial services company Truist Securities is one of the most bullish companies on the market. large cap stocks with a Buy rating and a price target of $205.
“With products continuing to resonate extremely positively, deep innovation pipelines for both brands, still low but developing brand awareness overseas and management’s thoughtful approach to market segmentation, market, we believe DECK is well positioned to maintain a strong growth trajectory,” says Truist Securities Analyst Joseph Civello .
The analyst adds that HOKA’s “continued outperformance and success with higher-priced franchises reinforces our belief in long-term margin expansion opportunities.”
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