Deckers Brands (DECK) shares jumped over 10% Friday after its quarterly earnings release topped top and bottom-line consensus estimates.
The company reported Q3 EPS of $15.11, $3.71 better than the analyst estimate of $11.40, while revenue for the quarter came in at $1.56 billion, up 16% year-on-year and above the consensus estimate of $1.44 billion.
The company's profit and revenue in the quarter both reached record levels.
The company's domestic net sales increased 15.6%, while international net sales increased 16.7%.
"Our brands delivered Deckers' largest quarter in history, with record revenue and earnings as both HOKA and UGG drove exceptional performance in the quarter, led by our DTC channel and high levels of full price selling," said Dave Powers, DECK's CEO. "Global gains in awareness, combined with elevated consumer connections and innovative product offerings, continued to drive unparalleled demand for our brands."
Looking ahead, the company sees FY2024 EPS between $26.25 and $26.50, above the consensus of $24.25, while revenue is expected at approximately $4.15 billion, versus the consensus of $4.105 billion.
Reacting to the report, analysts at Truist raised the firm's price target for the stock to $983 from $859, maintaining a Buy rating on the stock. They said DECK reported "yet another meaningful beat as (1) UGG demand remains white hot (similar to strong Truist Card Data) and (2) HOKA’s robust trajectory continued (even as it lapped extremely tough comparisons)."
Analysts at Citi raised their price target for the stock to $835 from $830, keeping a Neutral rating on the stock. They stated that the business is as strong as ever but as the focus turns to F25, they believe it will be very difficult UGG/GM comparisons, while "a high valuation will limit upside to the stock."
Analysts at Stifel raised the DECK price target to $775 from $709, stating the outlook leaves the potential for FY4Q upside, but profit pool expansion is being led by UGG. The firm maintained a Neutral rating on the stock.
Analysts at Piper Sandler raised its price target for Neutral rated DECK to $780 from $730, saying that UGG led strong outperformance in 3Q as they underestimated price increases and full price selling mix.