Key points:
- DECK shares soar 17% on better-than-expected Q4 earnings
- The company reported EPS of $2.51, more than doubling from $1.18 last year
- For the rest of the year, Deckers hopes to post a total EPS of between $17.40 and $18.25
Branding itself as a key influencer in ‘performance lifestyle’ footwear, demand for Deckers Outdoor (NYSE: DECK) products are effectively weathering macroeconomic headwinds, as announced in the company’s fourth-quarter earnings report released after the bell on Thursday. It’s been a mixed bag for retailers and manufacturers, as big brands try to juggle inflation and supply chain issues. DECK shares jumped postmarket, currently sitting at a comfortable gain of 17% moving towards the opening bell.
The footwear specialist has seen consistent demand for its products, resulting in net income more than doubling and a firm revenue beat. The company recorded net income of $68.8M or $2.51 per share, a noticeable leap from the $33.5M or $1.18 per share seen in the same period last year. Net sales rose to $736M, beating analyst expectations of $639.5M.
Looking to the rest of the year, Deckers hope to cash in net sales of between $3.45B and $3.5B, with EPS of between $17.40 and $18.25. It’s a confident outlook based on a strong fourth-quarter, at a time when retailers and manufacturers are feeling the pulldown of inflation and supply chains in tatters.
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Any company that is appearing to weather the current economic climate stands out at the moment, as more and more fall victim to various headwinds. Deckers is also undergoing a management change, which is always interesting for investors. Wendy Yang will be stepping down in turn for omni-channel president Stefano Caroti until the company finds a full-time replacement. The earnings beat marks the third successful earnings beat for the company since beginning public trading.
