Deckers Brands (NYSE:DECK) surged in trading after reporting better-than-expected Fiscal Q4 results. The footwear maker of Hoka sneakers and Ugg boots reported Q4 diluted earnings of $4.95 per share, compared to $3.46 per share in the same period last year. This exceeded consensus estimates of $3.23 per share.
The company generated net sales increased 21.2% year-over-year to $959.8 million in the fourth quarter, above Street estimates of $797.4 million. Sales of its Ugg boots increased 14.9% year-over-year to $361.3 million in Q4 while DECK clocked net sales of $533.0 million of its Hoka sneakers, a jump of 34% year-over-year.
DECK’s Stock Buyback
Furthermore, Deckers repurchased around 119,000 shares of its common stock worth $104.3 million during the fourth quarter at a weighted average price of $875.01 per share. In comparison, the company had repurchased stock worth $99.7 million in the Fiscal third quarter.
As of March 31, 2024, DECK had around $941.7 million remaining under its stock buyback program.
DECK’s FY25 Outlook
Looking forward, management now expects its FY25 net sales to increase by 10% year-over-year to $4.7 billion with diluted earnings per share likely to be in the range of $29.50 to $30.00. For reference, analysts were expecting earnings of $30.47 per share on net sales of $4.7 billion.
Is Deck a Good Stock to Buy?
Analysts remain cautiously optimistic about DECK stock, with a Moderate Buy consensus rating based on 10 Buys and six Holds. Year-to-date, DECK has increased by more than 30%, and the average DECK price target of $1,032.36 implies an upside potential of 14.1% from current levels.
