Deckers Brands beats EPS estimates, raises guidance midpoint

Investing.com -- Deckers Brands (NYSE: DECK) reported first quarter results that exceeded earnings expectations while revenue met analyst estimates, with the company raising its full-year earnings guidance.

The footwear company posted adjusted EPS of $0.94 for the first quarter, beating the analyst consensus of $0.87 by $0.07. Revenue reached $1.02 billion, matching analyst estimates and representing a 5.7% increase from $964.5 million in the same quarter last year. The company attributed the performance to continued strength in its HOKA and UGG brands. Shares rose 1.3% following the announcement.

"Deckers delivered a solid start to the fiscal year, surpassing $1 billion of first quarter revenue for the first time," said Stefano Caroti, President and Chief Executive Officer. "This performance reflects the continued strength of HOKA and UGG, with growing global demand as both brands extend their reach through compelling product innovation."

For fiscal 2027, Deckers raised its full-year EPS guidance to a range of $7.35 to $7.50, up from its prior outlook. The midpoint of $7.43 aligns with the analyst consensus of $7.50. The company maintained its revenue guidance of $5.86 billion to $5.91 billion, with the midpoint of $5.89 billion slightly below the consensus estimate of $5.91 billion.

By brand, HOKA net sales increased 7.7% to $703.5 million, while UGG net sales rose 4.9% to $278.0 million. Direct-to-consumer sales grew 13.0% to $352.8 million, outpacing wholesale sales which increased 2.2% to $666.7 million. International sales climbed 8.4% to $502.1 million, exceeding domestic sales growth of 3.2% to $517.4 million.

Gross margin expanded to 56.4% from 55.8% in the prior year period.

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