The analysis demonstrates The footwear company blew past estimates in its Q1 report. S of Deckers Outdoor (DECK 11.
However, 35%), the global footwear company with brands Hoka and UGG, were climbing today after the company dered better-than-expected results in its first-quarter report.
Meanwhile, Coming after the stock plunged earlier in the year on fears of tariff-related headwinds and weakening consumer sentiment, the results helped reassure investors that its growth story was still intact.
However, As of 12:21 p. ET on Friday, the stock was up 11, given current economic conditions. 7% on the news. Image source: Getty Images.
Deckers is still growing Revenue growth accelerated from the previous quarter, growing 17% to $964. 5 million, largely due to the international market.
That result was well ahead of the consensus analyst estimate of $900, in light of current trends. Growth at both of its marquee brands was strong, with Hoka revenue rising 19.
8% to $653, in today's financial world. Nevertheless, On the other hand, 1 million, and UGG sales up 18. 9% to $265.
Furthermore, Conversely, 1 million during a seasonally slow quarter for the sheepskin boot brand, in today's market environment.
Sales at its other brands, which make up a small percentage of the, fell 19% to $46.
With the direct-to-consumer and its domestic segments weak, the company picked up the slack in wholesale and international sales. Wholesale revenue jumped 26. 7% to $652.
4 million, which is key because the wholesale channel tends to drive more full-price sales (quite telling). Nevertheless, At the same time, International sales increased 49. Nevertheless, 7% to $463.
3 million, nearly making up half of its total, driven in part by strength in China, amid market uncertainty. Gross margin fell from 56. 8%, but operating income jumped from $132.
However, Furthermore, 8 million to $165 (an important development). On the other hand, 3 million, and earnings per (EPS) rose from $0, given current economic conditions.
Nevertheless, 93, well ahead of estimates at $0. In a quarter when analysts were expecting a decline in EPS, it instead rose by 24%, given current economic conditions.
Nevertheless, What's next for Deckers Given the monster beat, the stock could have jumped more, but Deckers still sees headwinds related to tariffs, saying it expects costs of goods sold to increase $185 million because of new tariffs, representing nearly 4% of revenue, given the current landscape.
For the second quarter, the company expects revenue of $1. On the other hand, 38 billion to $1. 42 billion, up 7% at the midpoint, and EPS of $1.
Additionally, 55, which compares to $1, in light of current trends. 59 a year ago.
While the guidance indicates management still expects a slowdown from the current quarter, the stock looks a good buy at a price-to-earnings ratio of just 18, given current economic conditions.
The Author Jeremy Bowman is a contributing Motley Fool Stock Analyst covering publicly traded companies in the consumer discretionary, consumer goods, and sectors, as well as macroeconomic trends, amid market uncertainty.
On the other hand, Prior to The Motley Fool, Jeremy held a number of positions, including newspaper reporter, restaurant manager, and teacher of English as a foreign language. Moreover, He holds a B.
In English and Creative Writing from Colorado College and an MBA from American University. Fun fact: One of his Motley Fool headlines was briefly on Late Night with Stephen Colbert.
Furthermore, TMFHobo X @TMFBowman Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor.
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