Deckers Q2 Earnings Beat Expectations with Strong Revenue Growth in UGG and HOKA Brands
Deckers posted strong Q2 results, with revenue reaching $1.31 billion, up 20.1% from last year. Deckers’ earnings per share (EPS) came in at $1.59, higher than last year’s $1.14. This revenue and earnings growth exceeded Wall Street predictions, as Deckers’ revenue beat the Zacks Consensus Estimate of $1.2 billion, showing a surprise increase of 9.58%. EPS also surprised analysts, with a 30.33% boost over the expected $1.22.
For investors, revenue and earnings numbers are key, but deeper analysis of specific brand sales can provide more insights into Deckers’ performance.
Here’s a closer look at how Deckers brands performed in Q2:
- Teva: Net sales totaled $22 million, up 2.3% from last year and slightly above analyst estimates of $20.94 million.
- UGG: The brand achieved $689.90 million in sales, a 13% increase, outperforming the $628.71 million estimated.
- Other Brands: Sales were $25.80 million, down 15.7% and below the estimate of $31.08 million.
- HOKA: This brand saw significant growth with $570.90 million in sales, a 34.7% increase, well above the $516.65 million estimate.
- Sanuk: Sales reached $2.80 million, a 48.2% decrease, falling short of the $3.29 million estimate.
Despite this strong performance, Deckers’ stock is down 3.3% over the past month, compared to a 1.4% gain for the S&P 500. Deckers currently holds a Zacks Rank #3 (Hold), suggesting it may align with broader market trends in the short term.
This quarter’s performance highlights Deckers’ solid position, with standout growth from the UGG and HOKA brands driving results above expectations.