In diesem Artikel:
Deckers Outdoor Corp. (DECK, Financials) shares fell 15.87% to $187.51 as of 10:33 a.m. GMT-5 on Friday, despite the company posting strong third-quarter results and raising its full-year guidance.
Exceeding analysts' projections of $1.73 billion, Deckers recorded a 17% year-over-year income gain to $1.83 billion. At $3, adjusted profits per share above consensus projection of $2.59. Rising full-price sales and a better product mix helped gross margin rise to 60.3%.
Strong success from its UGG and HOKA brands was mentioned by the firm as main engine of development. Direct-to---consumer sales and wholesale growth helped UGG revenue rise 16% to $1.24 billion. Reflecting new product introductions and worldwide development, HOKA sales climbed 24% to $531 million.
Rising from its prior forecast of 12%, Deckers boosted its full-year sales projection to $4.9 billion, showing 15% increase. While anticipating UGG sales to rise by 10%, the business kept its HOKA growth estimate at 24%. Projected operating margin is 22%; full-year gross margin should surpass 57%.
With analysts citing worries about discount pressures on HOKA models and inventory limits for UGG in the fourth quarter, the stock's drop defies record Q3 profits. Emphasizing HOKA's long-term potential, management aimed for a 50/50 revenue split between local and foreign sales.
At $2.2 billion in cash and equivalents, Deckers finished the quarter repurchasing $45 million in shares. Reflecting a little slowing down, the 17% income increase in Q3 contrasts with 20% in Q2.
Investors are wary about possible margin challenges, foreign currency headwinds, and freight costs, which might affect short-term performance even if the company's solid results and improved forecast reflect.
This article first appeared on GuruFocus.