What Happened:

Shares of footwear and apparel conglomerate Deckers (NYSE:DECK) jumped 13.6% in the morning session after the company reported second-quarter earnings results. Deckers blew past analysts' EPS expectations this quarter. In addition, its constant currency revenue outperformed Wall Street's estimates. The top line was powered by strong demand for the HOKA brand, with sales up 30% year on year. On the other hand, its full-year revenue and earnings guidance missed. Overall, this was a mixed yet decent quarter for the company, and shareholders should feel optimistic.

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What is the market telling us:

Deckers's shares are not very volatile than the market average and over the last year have had only 6 moves greater than 5%. Moves this big are very rare for Deckers and that is indicating to us that this news had a significant impact on the market's perception of the business.

The biggest move we wrote about over the last year was 2 months ago, when the stock gained 13.6% on the news that the company reported first-quarter earnings results that blew past analysts' constant currency revenue and EPS expectations, driven by huge outperformance at its Hoka ($533 million of revenue vs. estimates of $496 million) and UGG ($361 million of revenue vs. estimates of $318 million) brands.

On the other hand, its full-year EPS forecast was underwhelming. Still, this quarter's print was strong enough to mask the slightly weaker earnings outlook (especially considering its full-year revenue guidance was in line). Overall, this was a really good quarter that should please shareholders.

Deckers is up 34.3% since the beginning of the year, but at $905.33 per share it is still trading 17.2% below its 52-week high of $1,094 from May 2024. Investors who bought $1,000 worth of Deckers's shares 5 years ago would now be looking at an investment worth $5,673.

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