financetom
Market
financetom
/
Market
/
Deckers Outdoor shares dash ahead on surging demand for Hoka shoes
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Deckers Outdoor shares dash ahead on surging demand for Hoka shoes
Nov 3, 2024 11:26 AM

(Reuters) - Deckers Outdoor ( DECK ) shares jumped about 15% in premarket trading on Friday after the shoemaker raised its annual sales forecast and beat second-quarter expectations, on resilient demand.

Trendy and innovative brands such as Hoka, UGG, New Balance and Roger Federer-backed On are a hit among consumers, especially in the running category, and has eaten into the market share of giants such as Nike ( NKE ).

Deckers reported a nearly 35% jump in Hoka sales in the second quarter, while the UGG brand rose 13%.

"DECK continues to deliver strong results in an uncertain macro operating environment, speaking to its strong market position with a healthy brand portfolio that can continue to drive growth longer-term," Dana Telsey, analyst with Telsey Advisory Group said.

Hoka has been gaining shelf space at Dick's Sporting Goods and Nordstrom ( JWN ) as the retailers replenish their stock with consumer favorites.

"The company is executing well in driving brand heat and elevating global brand awareness and view higher marketing investments as an important strategic decision that should continue to support top line growth," Joseph Civello, analyst with Truist Securities said.

Deckers expects annual sales to rise 12% to $4.8 billion, compared with previous forecast of 10% rise to $4.7 billion.

Its quarterly net sales of $1.31 billion beat expectations of $1.20 billion, while it posted adjusted profit of $1.59 per share, compared to estimates of $1.23.

Deckers' forward price-to-earnings ratio for the next 12 months, a common benchmark for valuing stocks, was 25.95, compared with Nike's ( NKE ) 26.59 and On's 43.62.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Arun Koyyur)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
INDIA STOCKS-Indian shares tumble after Fed projects fewer rate cuts next year
INDIA STOCKS-Indian shares tumble after Fed projects fewer rate cuts next year
Dec 18, 2024
(Updates at market open) Dec 19 (Reuters) - Indian shares dived on Thursday, led by U.S.-rate sensitive information technology stocks, after the Federal Reserve projected fewer interest rate cuts in 2025, citing sticky inflation and strength in the world's largest economy. The NSE Nifty 50 fell 1% to 23,969.25 points as of 09:15 a.m. IST, while the BSE Sensex dropped...
Japan's Nikkei tracks Wall Street lower; BOJ decision in focus
Japan's Nikkei tracks Wall Street lower; BOJ decision in focus
Dec 18, 2024
(Updates prices at midday recess) By Kevin Buckland TOKYO, Dec 19 (Reuters) - Japan's Nikkei share average slid nearly 1% on Thursday, as traders took cues from an overnight tumble on Wall Street, with tech shares driving the decline. Investors were also cautious ahead of a policy decision from the Bank of Japan later in the trading day, with most...
Why Nasdaq-100 Leveraged ETF TQQQ Is Falling
Why Nasdaq-100 Leveraged ETF TQQQ Is Falling
Dec 18, 2024
The ProShares UltraPro QQQ ( TQQQ ) , which provides triple-leveraged exposure to the Nasdaq-100 Index, fell some 10.81% to $82.09 Wednesday after the Federal Reserve's December meeting. What To Know: The ETF is sensitive to bullish sentiment in tech stocks, which struggled amid concerns over the Fed's cautious outlook on monetary easing. While the Fed reduced the federal funds...
Japan's Nikkei pares declines, yen weakens as BOJ forgoes rate hike
Japan's Nikkei pares declines, yen weakens as BOJ forgoes rate hike
Dec 18, 2024
(Updates prices after BOJ decision) By Kevin Buckland TOKYO, Dec 19 (Reuters) - Japan's Nikkei share average pared early declines on Thursday as the yen weakened following the Bank of Japan's decision to refrain from raising interest rates. The yen fell despite widely-held market expectations that Japan's central bank would push policy tightening to January or March, and was down...
Copyright 2023-2025 - www.financetom.com All Rights Reserved