Hoka-owner Deckers provides upbeat annual outlook on resilient demand
Deckers Outdoor Corporation DECK | 0.00 |
May 21 (Reuters) - Deckers Outdoor DECK.N forecast annual sales and profit above Wall Street estimates on Thursday, banking on resilient demand for its UGG boots and Hoka running shoes.
Growth in wholesale and direct-to-consumer channels, coupled with new product launches, benefited the company despite pressure on lower-income consumers from sticky inflation.
Sales at its Hoka brand rose 14.5% during the fourth quarter, while sales at the UGG brand increased 9.2%.
"Our focus on brand building, product innovation and category leadership, along with marketplace execution continues to drive full-price demand across an expanding global audience," CEO Stefano Caroti said in a statement.
Deckers, which relies heavily on Vietnam as a key manufacturing hub, expects fiscal 2027 sales to be between $5.86 billion and $5.91 billion, compared with analysts' average estimate of $5.82 billion, according to data compiled by LSEG.
Annual per-share earnings are forecast at $7.30 to $7.45, while analysts expect $7.34.
Overall quarterly sales rose 10% to $1.12 billion, and profit came in at 96 cents per share. Both topped analysts' expectations.
