Decks brand (NYSE: deck) delivery Profites have increased by 17 % to a record of $ 1.83 billion, a huge hit quarter, exceeding the expectations of Wall Street. Supported by the relentless demand for UGG and HOKA, the company expanded the margin to 60.3 % and showed prices despite many transactions. Dr. Deckers has maintained multiple years of growth, as direct sales for consumers jump nearly 18 % and international revenue has risen by 28.5 %. The company has responded by raising annual profit guidance to 15 % and marking the five -digit expansion for the fifth consecutive year.
But the market was not impressed. Despite the beats of revenue, the deck shares have dropped 16.5 % in the morning because the investors considered the company's renewed guidance conservatives. We are concerned about HOKA's potential markdown prior to the decline in UGG stock in the fourth quarter and a new launch added to cautious emotions. Analysts pointed out that Deckers' recent out -performance and their cautious forward prospects were uneven, and questioned to maintain their momentum.
Deckers has also made a strategic change and has been raised a few months after off -road of SANUK. By doubleing UGG and HOKA, we aim to solidify leadership with margin shoes. Although the stock stumbled, the foundation of the Deckers remains strong, and there are many zero debt and $ 2.24 billion cash. With the development of 2025, the company faces the challenge of proving that conservative guidance is wrong while maintaining a streak in a competitive footwear.
This article was published first Gurfocus。
