Deckers Tops Q3 Estimates, Issues FY24 Guidance, Announces A CEO Succession Plan, Shares Gain After-Hours

Deckers Outdoor Corp DECK shares are trading higher in Thursday's after-hours session after the company reported better-than-expected third-quarter financial results and issued guidance. Here's what you need to know.

The Details: Deckers reported third-quarter earnings of $15.11 per share, exceeding the Street's estimate of $11.48, an increase of 44% compared to earnings of $10.48 per share in the same period last year.

Revenue of $1.560 billion beat analyst estimates of $1.448 billion, marking a growth of 16.0% compared to $1.346 billion in the same period last year.

Among the company's brands, HOKA brand net sales shined brightest, increasing by 21.9% to $429.3 million, compared to $352.1 million year-over-year.

Also, gross margin was 58.7% for the quarter, compared to 53.0% year-over-year.

Deckers saw a full-year 2024 adjusted earnings between $26.25 and $26.50 per share and revenue of approximately $4.15 billion. Additionally, the gross margin is now estimated to be approximately 54.5%.

"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, president and CEO.

"Global gains in awareness, combined with elevated consumer connections and innovative product offerings, continued to drive unparalleled demand for our brands. This, coupled with our disciplined operating approach, dedicated focus on marketplace management and fortified balance sheet, puts Deckers in a position of strength as we enter our last fiscal quarter of 2024."

It is also worth noting the company announced that the CEO will retire, effective Aug. 1 and Stefano Caroti will become president And CEO.

DECK Price Action: Shares of Deckers were up 4.87% at $810.50 in the after-hours session at the time of publication Thursday, according to Benzinga Pro.

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