DECKERS Outdoor raised its annual sales and profit forecast on Thursday, betting on strong demand for its sneakers and boots, including Hoka running shoes, sending shares of the company up about 15 percent in extended trading.
New product innovations, along with increased promotions, have helped the company attract shoppers and tap into the market share of sportswear giants such as Nike at a time when discretionary spending is strained due to macroeconomic volatility. The company, which is known for its UGG boots, benefited from promotions it ran for products, including Hoka Bondi 8 and Bondi 9 sneakers. Meanwhile, US consumer spending saw a robust boost in December as Americans spent heavily on nondurable goods such as apparel and footwear. Deckers’ third-quarter sales rose 7 percent to $1.96 billion, beating the average of analysts’ estimates of $1.87 billion, according to data compiled by LSEG. Sales at the Hoka brand rose 18.5 percent, while UGG rose 4.9 percent in the quarter. Goleta, California-based Deckers earned a profit of $3.33 per share, compared with analysts’ estimates of $2.76 per share, helped by increased sales of products at full price. The company expects annual sales in the range of $5.40 billion to $5.42 billion, compared with the previous projection of $5.35 billion. It sees annual per-share earnings to be between $6.80 and $6.85, compared with the previous projection of $6.30 to $6.39.
