Deckers Outdoor Posts Q2 Beat, Analysts Say Hoka Shoe Company Could Maintain 'Robust Growth Trajectory'

Shares of Deckers Outdoor Corp DECK were climbing in early trading on Friday after the company reported upbeat fiscal second-quarter earnings.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

• Stifel analyst Jim Duffy maintained a Hold rating, while lifting the price target to $181.
• KeyBanc analyst Ashley Owens reiterated an Overweight rating, while raising the price target from $180 to $190.
• Truist analyst Joseph Civello reaffirmed a Buy rating and price target of $205.
• Piper Sandler analyst Anna Andreeva maintained a Neutral rating and price target of $160.

Check out other analyst stock ratings.

Stifel: Deckers Outdoor reported quarterly revenues of $1.31 billion and earnings of $1.59 per share, both beating consensus of $1.204 billion and $1.24 per share, respectively, Duffy said in a note. The revenue upside reflects stronger-than-expected revenues from UGG, Hoka, and Teva, partially offset by Koolaburra and Sanuk, he added.

Although management raised the full year earnings guidance to $5.15-$5.25 per share, the midpoint is lower than the second-quarter upside delivered, the analyst stated. "While momentum is strong and near-term estimates have room for upward revisions, the generous implied multiples give credit for this and we see upside to share limited," he further wrote.

KeyBanc Capital Markets: Deckers Outdoor delivered a beat "on all fronts" and across brands and channels, Owens said. As expected, the bulk of the growth came in the first half of fiscal 2025. Owns credits this growth to strong sell-in and expansion with partners.

Despite growth "settling down a bit" in the second half, there is upside potential from "new product launches and strong international runway." While "meaningful" opportunity is in expanding UGG’s men’s business, Hoka apparel "remains a compelling LT focus," Owens added.

Truist Securities: The company delivered "yet another meaningful beat/raise," backed by "extremely robust" momentum for both HOKA and UGG, Civello said. Products of these businesses continued to "resonate extremely well," he added.

Both brands have "deep innovation pipelines" and they are building brand awareness abroad, albeit their presence is still small, the analyst stated. Deckers Outdoor appears poised to maintain "a robust growth trajectory," he further wrote.

Piper Sandler: Deckers Outdoor delivered a beat "across the board," with sequential sales growth of 9% and earnings growth of 35%), against "the toughest compare of the year," Andreeva said. The company's performance was backed by continuing "strong full price momentum" at both brands and well controlled distribution, she added.

"Company raised HOKA outlook for the year but maintained UGG–we think appropriate given the Holiday ahead with upside likely," the analyst wrote. She stated, however, that the gross margin guidance implies a contraction in the back half of the year.

Price Action: Shares of Deckers Outdoor had risen by 12.21% to $170.60 at the time of publication on Friday.

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