Deckers Outdoor (NYSE:DECK) shares traded lower in pre-market Friday after the company offered a weaker-than-expected full-year forecast.
Deckers reported FQ4 EPS of $3.46 on revenue of $791.6 million, easily beating the analyst estimates for earnings of $2.67 per share on revenue of $720.5M. Net sales rose 7.5% year-over-year.
"Fiscal year 2023 was an exceptional year for the Deckers organization, delivering 15% revenue growth and increasing earnings per share nearly 20%," said Dave Powers, President and Chief Executive Officer.
"We continue to deliver record results, including the HOKA brand adding more than half a billion dollars of top-line revenue. We are energized for the path ahead as we continue investing behind our long-term strategic priorities, while maintaining a disciplined approach to managing our operating model to drive sustainable future success."
Despite a strong end to the 2023 fiscal year, Deckers said it sees FY24 EPS at $21.35 per share on revenue of $3.95 billion. Analysts were looking for EPS of $21.77 on sales of $3.97B.
BTIG analysts weighed in positively on DECK’s report, saying the company is “outperforming in a tough wholesale environment.”
On the weaker guidance, the analysts say it likely “reflects a combination of management's typical conservatism, combined with strategic long-term business management.”
“Over the medium-term, we continue to see DECK's fundamentals as poised to outperform, and believe we could see both estimates and multiples move higher as a result,” the analysts further noted.
Similarly, BofA analysts said the guidance looks conservative.
“We think the recent pullback in shares offers a particularly attractive buying opportunity. We view mgmt’s F24 outlook as conservative and see a high likelihood of upward estimate revisions given our expectation for outsized growth at HOKA,” they said.