Deckers Outdoor (DECK), which makes the increasingly-popular Hoka shoes and Uggs, cleared Q4 estimates late Thursday.

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Deckers reported a 43% increase in earnings to $4.95 per share while revenue jumped 21.2% to $959.8 million.

FactSet analysts expected the Hoka shoes maker to report a 14.2% decline in earnings to $2.97 per share. Wall Street expected revenue growth to slow for the second quarter in a row, increasing 12.1% to $888 million.

Deckers averaged 56% earnings growth over the last three quarters, with an average sales growth of 17% during that period.

Hoka Shoes Sales, Uggs Outperform Forecasts

Hoka shoes sales growth accelerated with a 34% increase to $533 million, ahead of views of a 27% increase to $506 million. Sales growth for the Hoka shoes brand slowed to 21.9% in Q3 from 27.6% in Q1.

Sales for the Ugg brand, which is best known for its winter boots and historically Deckers’ top seller, increased 14.9% to $361.3 million. Analysts predicted Ugg sales to fall 5.4% to $297 million.

Full-year revenue increased 18% to a record $4.29 billion and topped forecasts of $4.22 billion. Deckers’ 2024 earnings increased 50.5% to $29.16 per share, while analysts expected $27.22 per share.

Deckers guided 2025 net sales to increase about 10% to $4.7 billion, which matched FactSet forecasts. The company sees 2025 earnings ranging from $29.50 to $30 per share, slightly below estimates of $30.47.

Barclays on Tuesday lowered its price target on DECK stock to $1,026 from $1,110 but kept an overweight rating on the shares, The Fly reported. Barclays’ quarter-to-date checks in May suggest a weak consumer spending backdrop for retailers, and promotions were necessary to drive traffic and sales, the firm wrote in a research note.

But Telsey Advisory thinks that Deckers should be able to avoid that weakness. Deckers’ brands, especially Hoka shoes, are likely to continue to benefit from selective consumer spending this spring season, Telsey wrote in a Monday research note. The firm lifted its price target on DECK stock to $985 from $930 and maintained an outperform rating on the shares, according to The Fly.

Deckers Stock Performance

Deckers stock rallied 9.8% late Thursday after gaining 1.3% during market hours ahead of the report.

Shares are poised to open well above a 916.55 buy point for a cup-with-handle base if the move holds. DECK stock will also set a new record high by a wide margin.

The Hoka shoes seller rallied 33.6% this year through Wednesday’s close.

Among other footwear stocks, On Holding (ONON) rose 2.2% Thursday. The Swiss running shoe manufacturer spiked last week after posting a major earnings beat. ONON stock is extended above a buy zone for a seven-week consolidation.

Skechers (SKX) eased slightly Thursday. SKX stock is extended and trading near record highs after breaking out of a double-bottom base on earnings at the end of April.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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