- 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.
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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.
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.