Deckers Outdoor stock surges after raising full-year outlook

Shares of Deckers Outdoor (DECK) are surging after the company raised its full-year profit guidance, pointing to HOKA and UGG driving "robust full-price demand."

Morning Brief Hosts Jared Blikre and Seana Smith break down the earnings and some of the analyst notes following the report.

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This post was written by Melanie Riehl

Video Transcript

Let's take a look at Decker's Outdoor that's surging this morning after lifting its full year profit guidance, the company CEO saying, quote, Joa and Ugg continue to drive a robust full price demand in the global marketplace.

So you're talking about the fact that Chunky sneakers are back in with OKA, they, they're flying off the shelves.

You always talk about that.

Uggs are back in fashion.

I've been a buyer of both of these products here over the last several months of contributing to that.

But UGG sales, this really jumped out to me though, they rose 14% in the most recent quarter, less discounting the brands also taking share of the sandal market.

So again, this rise, we're seeing the popularity of Uggs once again, this continued steady out performance in Hoka.

Clearly, Deckers is benefiting from that.

It would be amazing to me if Uggs is somehow encroaching on the uh Sketchers market or, you know, I I don't even know, I don't even want to comprehend how that could work, but I do have some analyst commentary here is TD Cowan, the analyst remains impressed by the quote consistent of innovation, segmentation and a creative director, consumer growth, which should continue to support a robust growth profile in the future years saying that guidance increased, that was bigger than expected.

And he raised the price target to 1055 from 1039 city calling it another big beat.

And then here's another quote, despite market fears of a slowing macro management gave no indication of a change in the environment, suggesting earnings upside is still likely this year.

So that a little bit of a statement on the economy as well.

And you know, just kind of taking all of these, these earnings reports in stride that we've seen this week, the consumer does appear to be strong, the economy appears to be strong and some of the cracks that we've seen in the labor market haven't necessarily been showing up in the earnings reports.