Investing.com -- Deckers Outdoor lifted guidance after reporting Thursday better-than-expected fiscal first quarter results, driven by "robust" demand for Hoka and Ugg brands.
Deckers Outdoor Corporation (NYSE:DECK) surged 11% in premarket trading Friday.
For the three months ended June 30, the footwear and apparel company reported earnings per share of $4.52 on revenue of $825M, compared with Wall Street estimates for EPS of $3.43 on revenue of $805.1M.
HOKA and UGG continue to "drive robust full-price demand in the global marketplace," the company said, as margins climbed.
Gross margin rose to 56.9% from 51.3%.
In the wake of the report's release, Baird analysts reiterated an Outperform rating on the stock, raising estimates and the price target to $1,075.
"Overall a fitting final quarter under Dave Powers – the business remains well positioned for incoming CEO Stefano Caroti, and DECK's +double-digit revenue profile, leading margin/ROIC, and cash return potential justify sustained premium valuation metrics," analysts commented.
Separately, Stifel analysts noted they were "particularly pleased by reacceleration in the HOKA DTC business."
"HOKA is approaching a $2bn run rate and we believe the multiple underwrites expectations for 25% plus growth. In a slowing consumer backdrop and increasingly competitive performance running category, this is a high hurdle to sustain," added analysts, raising their target price to $887 while maintaining a Hold rating.
Looking ahead, the company raised its fiscal 2025 EPS guidance to a range of $29.75 to $30.65 from a range of $29.50 to $30.00 previously.
The strong set of results comes just a week ahead of Chief Commercial Officer Stefano Caroti's transition into this new role as chief executive officer.
Yasin Ebrahim contributed to this report.