Deckers Brands (DECK – Free Report) recently crushed quarterly earnings and raised full year guidance. This Zacks Rank #1 (Strong Buy) is expected to grow earnings in fiscal 2018 by the double digits.
Deckers makes footwear, apparel and accessories and is best known for owning the UGG brand. But it also designs Koolabburra, HOKA ONE ONE, Teva and Sanuk brands.
It sells in department stores, online and in Company-owned and operated retail stores.
Big Holiday Quarter
On Feb 1, Deckers reported its fiscal third quarter 2018 results which included the all-important holiday quarter and it crushed the Zacks Consensus Estimate by 29.4%.
Earnings were $4.97 versus the Zacks Consensus of just $3.84.
Sales rose 6.6% to %810.5 million from $760.3 million in the year ago quarter.
Gross margin also rose to 52.2% from 50.5% in the year ago period.
It saw stronger full price selling during the key holiday season. Favorable weather, i.e. cold and snowy, also contributed to the year-over-year improvement.
UGG is still it’s largest brand and those sales rose 4.3% to $734.7 million. HOKA ONE ONE, however, saw significant growth in the quarter, as sales rose 65.7% to $31.8 million from $19.2 million.
Teva sales also jumped nicely, rising 33.4% to $19.5 million from $14.6 million a year ago.
Sanuk was the laggard as sales managed to finish flat at $13.9 million.
International Sales Were Hot
While domestic US business remains the driving force, international sales challenged in the third quarter.
Domestic sales rose 2.5% to $501.7 million while international sales jumped 14% to $308.8 million, up from $270.8 million in the year ago period.
Raised Full Year Guidance
Given the strong holiday quarter, which was better than the company had expected, it’s not surprising that it raised its fiscal 2018 full year guidance.
Earnings are expected to be in the range of $5.37 to $5.42.
As a result, the analysts have raised their estimates with 6 estimates rising in the last 30 days.
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